The Two Faces of Fragrances: Evolution in Premium as Mass Stays Strong

Strategy Briefing

About This Report

Dec 2012

The fragrance industry has seen a strong resurgence in the last two years on the back of a solid performance in the premium segment. Premium fragrances’ growth surpassed that of mass for the first time in a decade, due to greater emphasis on quality, exclusivity and personalisation. Unit prices continued to rise and pose the biggest challenge to the industry. Brazil’s global dominance should continue to shape the market and the gradual shift in favour of mass offerings.

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The Two Faces of Fragrances: Evolution in Premium as Mass Stays Strong

What this report includes

  • Up-to-the minute analysis of the latest trends in the industry
  • New product development, forecasts and other themes
  • Unique graphics and illustrated case studies
  • Most recent brand and company news
  • New insight into the size and shape of the market

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  • Latest five year forecasts assess how the market is predicted to develop
  • Understand the competitive environment, the leading players and brands

Introduction

Scope
Key findings

Category Analysis

2011 a year of growth for fragrances
Premium fragrances continue to dominate the global market
Premium fragrances the best performing premium segment
Mass market more resilient but premium overtakes in 2011
Premium women’s fragrance dominate
Mass men’s fragrances boosted by Latin America
Mass fragrances catching on

Regional Analysis

Europe leads while Latin America gathers speed
Fragrances dominated by the US and Brazil
North America bounces back
Western Europe holding on
France still dominates premium fragrances in Western Europe
Premium female fragrances boosted by the UK
Latin America fuels growth in fragrances
Latin America dominated by mass products
Brazil’s insignificant presence in premium
Brazil’s mass market threatened by deodorants
Brazil’s teenage population inspires the deodorant market
Premium fragrance market dependent on the US
Russia: A future premium market?
Asia Pacific an untapped region full of opportunities
China overtakes Japan to lead in the region
Men’s fragrances lead in Saudi Arabia
South Africa a fragrance market of the future

Channel Analysis

Non-store channels gaining share
Online retail keeps up the pace, while department stores recover
Direct selling declines in Latin America but still grows globally
Brazil and Russia see strong online penetration
Online discount retailers hinder the Australasia market
Brands use mobile apps and social media to raise awareness

Industry Trends and Issues

Major factors influencing the fragrance industry
Premiumisation vs massification
Celebrity fragrances decline in key markets despite new launches
The rise of body sprays and deodorants
Difficult economic times give rise to smaller packaging
High unit prices in premium fragrances hamper growth in Brazil
Desire for individuality and return to quality fuels luxury and niche
Super-premium fragrances rise as a backlash to celebrity launches
P remium brands taking minimum risk in 2011

Key Prospects

Brazil holds the future for fragrances
Latin America overtakes Western Europe in 2016
Brazil’s high spend per capita shows premium potential
Mass fragrances will continue to gain ground
Conclusions

Report Definitions

Definitions