The perfume market in India is rapidly growing driven by the country’s increasing aspirational middle-class population, higher disposable income, higher propensity to spend on fragrances by the millennials segment of the population and changing lifestyle preferences of the consumers. India Perfume Market was valued at USD 211.6 million in FY2022 and will grow to USD 657.72 million by FY2030; exhibiting a CAGR of 15.23% during the forecast period between FY2023 and FY2030F.
The increasing demand from the millennial due to increase in physical activities such as participation in sports or yoga, lifestyle changes, focus on personal care, high purchasing parity and the advent of e-commerce platforms supporting ease of access and quick availability are all the factors that contribute to the growing usage of perfume in India. In the recent times, India has witnessed numerable home-grown brands being launched in the mass segment bringing in affordability and wider application amongst the users. There are more than 6,000 ingredients for fragrances listed with Fragrances and Flavours Association of India.
India is the third-largest market for perfumes in the Asia-Pacific region after China and Japan. Perfumes have been used since ancient times due to its properties of olfaction and creating an atmosphere of realm, supress foul odours and many proven therapeutic benefits as well. The experts determine the blending proportion of perfume oil with alcohol with majorly dissolving between 10% and 20% perfume oils in alcohol. The perfume market has evolved over time with respect to the retailing formats and mature and new age brands have differentiated positioning in the market.
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The Millennials – Indian Trendsetters
Perfumes, earlier deemed to be used only for special occasions are now a part of everyday personal grooming. Millennials are more focused on enhancing the personality and use products of high social worth. As of 2021, millennials comprise around 34% of India’s total population with an average age of 28.4 years majorly contributing to the workforce population as well. Since the wallet share of this segment in India is increasing, it is proving to be a crucial consumer segment in driving the growth of perfume market.
Perfume brands offer differentiated SKUs to cater to a wide cohort at various price points. The use of fragrances among millennials has increased significantly as a result of internet accessibility. This generation loves internet shopping since they are tech-savvy and more inclined to stick with a certain brand when buying grooming products like perfumes.
Public Figure Endorsements
More than one-third marketers may spend more than 60% of marketing budgets on digital platforms as stated in a report by Mobile Marketing Association. Instagram and Youtube ads are among the major platforms used by the companies of perfume segment with latter having a higher share in terms of usability.
Key players have been actively investing in digital marketing channels recently to increase product awareness leveraging the capabilities on campaigns on social media and influencer marketing. Therefore, e-commerce has become a successful means for perfume suppliers to connect with a large audience. Some merchants are even selling specially formulated perfumes to cater to each customer’s preference in an effort to increase sales. It is hoped that these improvements, supported by robust advertising efforts, will maintain customer attention over time.
Impact of COVID-19 on India Perfume Market
Similar to other businesses, the Indian perfume industry was significantly impacted by the pandemic. There was a paradigm shift in the demand patterns of the consumers. The retail establishments, which were the main outlets for the sale of perfumes—were forced to close as a result of strict lockdown policies and limitations on meetings and restricted mobility implemented by the Government of India. As a result, there was a decrease in both demand and sales. However, the Indian perfume manufacturers and retailers adjusted to the adverse situation by concentrating on online sales. As customers shifted to online purchasing to avoid being exposed to the virus, several businesses experienced a huge spike in their e-commerce sales. Given that the transition to online shopping is here to stay, this tendency is likely to persist long after the epidemic has subsided.
Report Scope
“India Perfume Market Overview, FY2016-FY2030F” is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative & quantitative assessment of the current state of affairs in the perfume market in India, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, COVID-19, opportunities, and forecast between FY2023 and FY2030. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business model, competitive intelligence, etc.