At the height of the Covid-19 pandemic, fragrance sales took a deep dive because of lockdowns and on-going restrictions worldwide.
The sector has roared back to life since the beginning of the year as travel retail and in-store shopping have re-bounded strongly.
In 2020, the global fragrance market reached sales of US$29.8 billion. The future looks even brighter, reports Future Business Insights. The global market researcher predicts that worldwide fragrance sales will reach US$43.2 billion by 2028.
Demand is being stoked by a preference for stronger concentrations such as eau de parfum and the desire for more exclusive niche fragrances, adds FBI.
The pandemic also led to an increased desire for scents that embraced the aromatherapy principles of cleanliness and emotional well-being.
Other more recent drivers of market growth include the continued rise of online purchasing in all major geographic regions and the personalisation of fragrance through AI-based solutions.
The Asia/Pacific region, led by China, will enjoy the fastest growth over the next five years, says FBI.
The Chinese market, the second largest beauty market in the world, has been growing rapidly, reveals Euromonitor. Between 2015 and 2020, fragrance revenues surged 14.9 per cent and are expected to rise by 22.5 per cent by 2028. According to the researcher, perfume sales in China will reach AUD$6.34 billion by 2025.
Department stores remain the most popular sales channels for retailing fragrances in China with a 55 per cent market share. But online sales are growing rapidly and account for 26 per cent of total perfume sales.
Chinese consumers prefer lighter eau de toilette concentrations. In 2021, floral scents led the pack with a 53 per cent market preference, followed by woods (36%), fruity and citrus notes ( both 34%).