The global fragrances industry has been forecast to increase at a compound annual growth rate (CAGR) of 4.2% over the next five years, increasing from total revenues of $31,618.5 million in 2012, to a value of $38,813.9 million by the end of 2017.
According to a recently released report, 'Fragrances: Global Industry Guide,' market consumption volumes increased with a CAGR of 2.6% between 2008-2012, to reach a total of 1,030.3 million units in 2012.
The global market for fragrances is being driven by growing trend towards consumer urbanization, higher spending propensity and heightened importance of personal appearance and grooming. In addition, increased demand for youth-oriented, floral and exotic fragrances and celebrity perfumes will set the pace for rapid market expansion.
Although women's perfumes continue to remain the mainstay and garner maximum sales, the hitherto dark horse, men's perfumes category is projected to plod ahead at a rapid pace, underpinning today's metrosexual male's desire to both look and smell good.
Fragrances today have evolved into a mainstream business in the cosmetics, and personal care industry. From being non-essential and frivolous, fragrances have emerged as essentials, owing to the increasing trend of appearance and personal care becoming part of pride, self reliance, and confidence.
No longer considered as an extravagant grooming accessory, Fragrances have metamorphosed into a "feel good" factor, which complements the consumer's need for expressing individuality, and personal style.
Currently on the global radar are low penetration markets such as China, and Japan, where huge untapped opportunities are the focus of large international players.
The fine fragrances market is increasingly looking at the teenage segment as a potential growth market, while women's fragrances continue to dominate the market, with maximum number of product launches and innovations aimed at the fairer sex.
Europe represents the largest worldwide market for fragrances. European consumers rank among the finest of connoisseurs of fragrances. Carrying out their legacy, European companies continue to dominate the global market and produce the majority of the world's most desirable brands.
For more information on the global fragrances industry, see the latest research: Global Fragrances Industry
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