Global Market for Perfume
Global market for perfume estimated to reach $ 33.5 billion by 2015
The most expensive form of perfume is the one which has concentrated oil and long lasting. It may contain several hundred ingredients. Its fragrance will last for six to eight hours. Three things have to be taken note of when choosing a good perfume: the first impression of the fragrance immediately after opening the bottle, the body of the fragrance on the skin and how much time it will linger. To keep up with the competition, all fragrances have to be immediate and long lasting. Perfume has 25 – 40% concentration of perfume oil. This form is very expensive and rarely sold. Eau de Parfum is an alcoholic perfume with 10 – 15 % of perfume compound. Eau de toilette contains 4-8% of perfume oil, Eau de cologne or aftershave is a lighter version of Eau de perfume with 3 – 5 % of perfume compound. Moisturizing perfume mist is ideal for warm weather as it contains oil and so it is less drying to the skin.
According to the perfume industry statistics, the annual revenue from sales is $ 27.5 billion. The U.S perfume sales revenue itself is $ 5.2 billion. The global market for perfume is expected to reach $33.5 billion by 2015. Europe is the largest market for fragrance and perfumes. The key players in this industry are Avon products, Bulgari S.p.A, Chanel SA, Elizabeth Arden, Estee Lauder, Coty, Gucci group NV, Polo Ralph Lauren Corporation, L’oreal SA, Procter & Gamble and Revlon. Today, there are over 32,000 designer perfumes available in the market . The various types of fragrances are Citrus (derived from citrus fruits like Lime, Lemon, Tangerine etc.), Green (blend of Pine, Juniper leaves and herbs), Floral(created from flowers like Rose, Lavender ,Jasmine Orange blossoms, Carnations etc.), Oriental (mix of Spices, Amber, Balsam and Resins), Oceanic (influenced by the sea and almost masculine with spice and citrus)and Woody (Pine, cedar, sandalwood scent).
In the current year i.e. 2012 the growth rate has been witnessed at 6% and is expected to touch $ 3 billion by the year end. Marketers have positioned perfumes based on destinations which are now becoming a global trend. Celebrity endorsed perfumes have always been a hit amongst the female population. In the male segment the major fragrance players include old spice and Axe who have attained a major portion of the fragrance market. If the players wish to last in this industry the marketers and strategists must focus on the quality aspect as now consumers are becoming highly conscious of what they purchase.