The Japanese fragrance industry has been forecast to increase at an average annual rate of 1.4% during 2007-2017, picking up pace after two years of decline in 2009 and 2011 due to economic recession and natural disaster.
Although Japan has the second biggest market for beauty and personal care, and carries one of the most developed and mature cosmetics markets around the world, Japan's fragrances is still in its infancy, totalling mere a ¥42 billion in 2012.
The overall growth in the market will be primarily driven by the female fragrances category, though male fragrances market is also expected to take off driven by higher grooming need of Japanese males.
The youth and teenage market is a potential growth market, leading many international companies to launch products that are youth-oriented. Advances in communication technology and media have enabled teenagers to be even more social, re-affirming the group identities that often drive teenager's product choices.
Although consumers are demonstrating growing awareness towards smell in general, much attention has been paid to deodorants and other scented products such as laundry detergent among consumers.
The men's fragrances market has witnessed strong growth as grooming has become a more important priority for men. Typically confined to after-shave toiletries, men's Fragrances for specific occasions have emerged as a strong growth market in Japan.
The Japanese fragrances sector is fragmented. 'Various distributors' parallel import foreign fragrances with 83% value share being sold through store-based retailing in 2012. 'Various distributors' accounted for 24% value share in 2012, with the leading distributor, Bluebell Japan, leading the field.
Bluebell Japan has been operating in Japanese fragrances since 1954 and the company distributes 25 international fragrance brands, including Bvlgari and Gucci.
For more information on the Japanese fragrance industry, see the latest research: Japanese Fragrance Industry
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