Fragrance industry has spread wide into all countries of the globe. Scents with vast varieties have established strong footholds in many global leading economies having a colossal sales chat for the manufacturers. It all started in the 2nd millennium century BC when people from the ancient Egypt, Mesopotamia, Roman and Persian cultures started the art of perfumery. In the initial stages, makers used spices and herbs such as conifer resin, coriander, almond, bergamot and myrtle along with some flowers to prepare premium perfumes. The market has been through an unprecedented growth rate globally, majorly in some selected countries the demands are constant.
Experts from the sector are closely watching the market related to different countries and is a notable increase in the business and further introduction of newer brands pumping up the competition further.
The fragrance sector has grown by many bounds since its inception. The global industry for the sector was valued at $ 31,618.5 million by the end of 2012 and it is estimated to be worth $ 38,813.9 million by the year 2017. This growth is predicted as a CAGR of 4.2% for the same period. According to the market research; the consumption rate have seen an increase of a CAGR of 2.6% and was totally valued at 1,030.3 million units by 2012.
The unisex fragrance segment is predicted to grow in regions like UK and Europe. They have presented a forecast CAGR of 3.7% and 3.1% by value and volume respectively. The sector is the fifth largest health and beauty category of the nine categories in the nation, going by the growth phase it is estimated to climb up the list in the future years.
The overall fragrance industry is also predicted to have a CAGR growth of 3.5% on value basis and 3.1% on volume basis. Uplifted financial conditions which are outcome of global economies returning to normality and the wish to pay higher prices for premium products are factors responsible for the profit making fragrance industry.
The women segment along with the men fragrances; both are expected to display a slow growth rate; whereas the unisex segment is predicted to race off and prove its emerging dominance as the largest segment in the sector. Its value is expected to increase at a CAGR of 3.9% and the volume is expected to rise at a CAGR of 4.0%, according to the research this segment is likely to grow above the average growth of the sector at large. This segment is also expected to have the highest value rise in the coming five years.
The developing economies which are popularly known as emerging markets like India, China, Brazil and Russia combined together showed a sector wise enhancement of 10% in the last year and accounted to a 49% share in the global fragrance sales.