THE ONLY WAY
The global fragrance market in 2015 was marked by an impressive recovery, reaching $45.7 billion, up 6% over 2014, the fastest growth recorded
over 2010–2015 (see F- 1). For the first
time, premium fragrances exceeded the
growth in the mass segment, gaining
close to 7% in 2015, compared to 5.7%
for mass. Investment in niche perfumery,
personalization and exclusive collections
are producing the desired impact as
premium players increasingly seek to
garner a piece of this lucrative market.
Trading Up Goes Global
Regional dynamics show evidence of
an expanding consumer base trading up
to premium brands, resulting in slower
growth in mass fragrances, including
the traditionally mass-orientated Latin
Fearing a stagnant market, several
fragrance houses responded by innovating
with alternative formats and customizable
options, such as Chanel’s purse spray formats
and Philosophy’s My Philosophy Perfume
Collection for mixing one’s own fragrance.
The global fragrance market points to a premium
n BY ORU MOHIUDDIN, SENIOR BEAUTY AND PERSONAL CARE ANALYST, EUROMONITOR
Fewer Scents, More Impact
Reviving the market also requires curbing
excessive launch activity in favor of fewer
but more impactful perfumes. For example,
Jean Paul Gaultier, which witnessed flagging
sales over 2010–2015 (- 1.2% CAGR), was
regained by Puig in 2016.
Puig plans to launch the first major
fragrance in 2017 to allow time to reinvent
the brand narrative and elevate its status
by streamlining its portfolio and focusing
on the two main collections: Classique and
Le Male. Doing so may require a complete
∑ For the first time, premium fragrances
are growing faster than mass.
∑ Multinational players can acquire
premium and niche brands to leverage
this growth, but must take care not to
dilute brand identity.
∑ Simultaneously, premium fragrances
trends are trickling down to the mass
segment, reaching a broader demo-
graphic and redefining what can really
be classified as mass.
Several fragrance houses have created alternative
formats and customizable options, such as Philosophy’s My Philosophy Perfume Collection for mixing
one’s own fragrance.