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Posted in Personal Care by Adolf on Sep 5,2022 477
Perfume is basically a mixture of fragrant essential oils or compounds, generally in a liquid form. The important purpose of the perfume is to reduce unpleasant body odours and make the consumer smell fresh throughout the day. The perfume market is driven by various consumer behaviours and demands. In India, perfume market is complex and has developed over the millennia. Consumers of perfumes are presented with a vast array of offerings from multinationals, from prestigious brands to independent manufacturers.
India has always been a country where attar, incense and aromatherapy fragrant oils were present since centuries. The essential oil perfumes were an essential part of the royal lore. Some of these perfumes are produced according to traditional formulae laid out in the ancient Hindu Ayurveda texts. Due to the historic abundance of natural aromatic resources present in the Indian geographic region, there is a glut of natural raw materials from which perfumes and scents are extracted. All these products are exported from India to the international perfume houses of the world, and are also being used by a broad segment of local unorganized manufacturers.
At present, the Indian perfume market is set to grow considerably and offer innumerable opportunities for new entrants to establish themselves in this market. The perfume market is operated by organized as well as unorganized players. Earlier, the market was overpowered by unorganized players, as India was a land of attars, Kannauj (Uttar Pradesh) being the capital city for attars.
Indians were mesmerized by the fragrance of attars and it was a favourite amongst many. Attars are somewhat losing their essence to these products as new players are entering into the organized market with innovations like perfumes, deodorants, and colognes. Recently, a made in India perfume from Kannauj was launched in New York. With aromatic notes of grass jasmine, may rose, sandalwood and vanilla, the fragrances one of the best-selling perfumes of all times in Indian market. Analyst across the country claims that one bottle of perfume is being sold every 55 seconds in India. India has traditionally been a strong men’s market as far as perfume is concerned. However, as the time goes, women are also actively concentrated into these iconic smells.
Furthermore, with the growth of the working women population, the demand for personal grooming products is witnessing massive demand from all over the globe. The market is driven by the growing popularity of premium and luxury perfumes & deodorants, and the adoption of aggressive marketing strategies by the market players. Market players are launching organic perfumes & deodorants and are developing products based on the end-user preferences. They are also using online platforms to reach remote locations and expand their consumer base.
Also, Indian population has evolved in last few years and now they are majorly concentrated on high-quality product. In India, no auspicious occasion would be completed without lighting the frankincense. Perfume sales increase during the holiday season because it is a popular gift for friends, family, and relatives. Companies that are already established in other fragrance-related segments are now foraying into the perfume market by expanding their product portfolios.
The market is expected to grow at a CAGR of more than 13% by end of the forecasted period of 2027, the demand for perfume products has been driven by rising personal grooming, brand awareness, increasing disposable income, growing demand from the middle class population, and an affordable range of perfumes.
By sales channel, offline sales holds the largest market share with more than 80% of the market, where as online is expected to grow with the highest CAGR in the coming years. Women are also emerging as the desirers of different perfumes, suiting their personalities and making them feel confident about themselves.
Major contributors to the perfume market have mostly been international players like Coty, Avon, P&G, etc. Indian manufacturers have also started venturing into the perfume market, such as Vini Cosmetics with the brand Fogg. Fogg is currently the leading brand in the Indian deodorant market and now plans to take on big players in the perfume category.
Many more big Indian names are setting their eyes on the perfume market and are planning to launch affordable perfumes for the price-sensitive Indian consumers. Domestic players like Fogg launched its range of perfumes for the Indian consumers priced at less than Rs. 500 which has left other big brands to re-think their pricing strategy for selling their perfumes in India. Price has been the biggest concern when it comes to buying a branded perfume. Ideally, Indian consumers look for perfumes that are ranged between Rs.100 to Rs.500 or maximum upto Rs.1000.