iData Insights

India Fragrance Market Overview Is Released

Press Release   •   Feb 22, 2016 15:11 IST

India overwhelms senses in so many ways and has a dissimilar pace of life. The use of fragrance in India started back in 2600BC during the Indus valley civilization. The earliest scents known to Indians were the healing scents introduced through Ayurveda. The major aim of all fragrances was to purify from negative influences and enhance the spirit. Cultural diversity, varying climatic conditions, arrival of foreign influences over various periods of our country’s history is all responsible for complex fragrance preferences of the consumers across India. Fragrances creations earlier were of wholly natural ingredients. But the declining agricultural forestlands because of encroaching civilization, rising world population, have all reduced the natural flora and fauna.

According to recently published report of Bonafide Research “India Fragrance Market Overview”, the fragrance market was growing at a CAGR of 32.71% over five years. The increasing middle class and rising disposable income provided many opportunities in the fragrance industry. The increase in perfume and deodorants consumption is growing primarily due to rising awareness about brands and personal grooming among people in the country.

The fragrance industry has registered strong growth in the last few years as the demand for fragrances are raising from tire-II and tire-III areas. As a result companies are gradually shifting their focus from metros by exploring other markets and have started to launch a range of affordable fragrance products like deodorants and perfumes. This strategy is one of the actual drivers of the industry. Moreover, the teenagers, both male and female are the major drivers in the urban areas. Irrespective of diversity in culture the use of fragrance and odoriferous substances has been a common practice across India for different religious functions, festivities and daily rituals.

Consumer’s fascination of fragrance has increased with time, as the manufacturers are coming up with new launches and innovations. Nowadays marketers sell products with fragrances as their main selling point with entire advertising campaigns centering on the fragrance odour of a product. There is better consolidation in the fragrance market, with larger players like Unilever, Godrej, Dabur, Reckitt Benkeiser, Wipro, Henkel, ITC, etc., generating most of the sales. Competition is intense in the industry in terms of quality, price, and services rendered to the end user. Manufacturers can achieve a competitive edge only by use of captive and exclusive ingredient technology that will make ones fragrance unique and difficult to copy. Cost control will continue to play a very important role if one has to maintain a prominent position.

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