Europe Perfume Market Research Report, 2027

During the projection period, Europe is anticipated to be the largest market for fragrances. In contrast to markets in developing nations, the perfume industry in Europe is developed. As a result, it is anticipated that, during the forecast period, its growth will be somewhat slower than that of markets in other regions. For every 10 workers employed in the European cosmetics and personal care industry, at least two further jobs are generated in the wider economy as a result of employees spending their wages on goods and services. Moreover, by attracting investment from outside of the EU, developing intangible assets like brands, and investing in R&D, the cosmetics and personal care industry is helping to enhance the competitiveness of the European economy and contributing to future prosperity. Consumers are also paying more attention to the ingredients in their skin creams and makeup, and fragrances are no exception, which is also opening more growth opportunities for brands that are bringing natural and organic products to market. However, it is consumers in Switzerland who spend the most on perfumes on a per capita basis. Developed and high-income countries are the biggest spenders on these types of products. According to the report, "Europe Perfume Market Research Report, 2027," published by Actual Market Research, the market has grown at a rate of more than 2.2% CAGR during the historic time period. Celebrity-inspired perfumes and youth-oriented fragrances are another tendency that has become an important factor in the fragrance industry today. Celebrity-inspired perfumes, which are extremely popular among the younger generation, are used by famous people in many diverse spheres in their self-promotion campaigns—a win-win formula that will be seen yielding more and more results in the coming years. However, perfume is not as important to the economies of northern Europe as it is to southern countries. Perfumes and cosmetics are among France’s top five exports, and the southern city of Grasse is the historic capital of the perfume industry, where many leading brands such as Chanel, Hermes, and Dior source their essences. It is an unquestionable fact that women’s fragrances have been a market dominator for many years, leading to a number of innovations and product diversifications targeting this particular segment. Men’s fragrances, however, offer the perfume industry countless opportunities for expansion. The increased spending on cosmetics and toiletries by men gives the players in the fragrance industry a green light to make innovations and offer more and more men’s fragrances, satisfying the increasing demand in this market segment. Europe is expected to register steady growth in terms of revenue during the forecast period, owing to the robust presence of many market players such as LVMH Moet Hennessy Louis Vuitton SE, Beiersdorf AG, Unilever plc, Puig SL, and L'Oréal S.A., among others, in countries in the region. Cosmetics and perfumery is a sector that employs more than 2 million workers in Europe throughout the supply chain, with more than 195,000 direct jobs. (2017) Also, there are more than 5,000 companies manufacturing cosmetics in Europe. The industry is largely influenced by downstream retail demand and consumption. The development and marketing of industry products are driven by consumer expectations, which are affected by population demographics such as age, gender, ethnicity, and religious beliefs; geography and climate; lifestyle; health; and general well-being. Revenue has been supported by widening product ranges, with operators increasingly incorporating cosmetic and beauty products to cater to emerging trends in Europe. Operators are selling more natural, organic products as well as targeting younger markets by promising a more glamorous look. Consumers have become increasingly image-conscious over the past five years, aiding demand for perfume and cosmetics in the European market. On the other hand, several recent trends are affecting the request: the development of niche fragrances, original and more premium products than mass-market perfumes, the appearance of customization solutions, and, as in many sectors, the multiplication of the number of organic and responsible approaches. France is by far the leading European producer of perfumes and toiletries, ahead of Germany and Italy, reflecting a trend towards production still often located in countries known for their know-how in the field of luxury. For instance, Chanel, a leading European company, is famous for its feminine and aromatic products. Chanel No. 5, a 94-year-old perfume featured in exhibits and museums from New York City to Paris, is one of the most popular and still highly preferred perfumes in Europe. On the other hand, founded in 1904 by François Coty in Paris, France, Coty is a fragrance company with a rich history that followed a simple yet effective strategy at the beginning of the 20th century. The company offered luxurious, high-quality beauty products and made them available to the mass market. Coty is now a global leader in the beauty industry. With about 50 of the most famous perfume and cosmetics brands in its impressive portfolio, this is the number one concern in the world of branded perfumery and cosmetics. When it comes to perfume, there is no dispute that Europe has the most popular perfumes out there, including Annick Goutal Perfume Eau D’Hadrien, Versace Bright Crystal, Dolce and Gabbana Light Blue, Chanel Coco Mademoiselle, and Chanel No. 5. Covid-19 Impacts: The COVID-19 crisis has accelerated the transformation of the sector, particularly in terms of distribution, which is a key link in the perfumery value chain. With the closure of physical sales outlets, the major perfumers had to compensate by developing their digital sales channels, in particular specialized e-commerce sites. Faced with this trend, the physical distributors must innovate and communicate to continue to attract customers to their outlets. The most likely to resist this trend are the large and strong networks, which push independent brands to join a group or risk disappearing. Online distributors are recording increased interest as home-bound consumers explore retail alternatives. Some beauty product brands and retailers with inventory and shipment operations are reporting e-commerce sales twice as high as their pre-COVID-19 levels. Major Companies present in the report Moët Hennessy Louis Vuitton (LVMH), Natura & Co., L’Oreal, Estee Lauder, CHANEL, IFF, Gucci, Hermes International, Shiseido Co. Ltd., Givaudan, Coty Inc, Firmenich S.A., Capri Holdings Ltd., Symrise, Burberry Group plc, PUIG, Revlon Inc., L'Occitane International SA, Wipro Consumer Care & Lighting Considered in this report • Geography: Europe • Historic year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecast year: 2027 Aspects covered in this report • Europe Perfume market with its value and forecast along with its segments • Country-wise perfume market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Countries covered in the report • Germany • UK • France • Spain • Italy • Russia By Product Type • Eau De Parfum • Eau De Toilette • Eau De Cologne • Eau Fraiche • Parfum • Others By End User • Men • Women • Others By Ingredient Type • Natural • Synthetic By Product • Premium • Mass By Distribution Channel • Online • Offline The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Perfume industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.