Perfume Market in US to Grow by USD 3.91 Billion from 2024-2028, Fueled by Rising Living Standards; AI Redefining Market Landscape - Technavio

NEW YORK, Oct. 22, 2024 /PRNewswire/ -- Report with market evolution powered by AI - The Perfume Market in US  size is estimated to grow by USD 3.91 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  10.52%  during the forecast period. Improving living standards driving demand for perfumes is driving market growth, with a trend towards innovative promotional activities for perfumes. However, availability of counterfeit products  poses a challenge - Key market players include Abercrombie and Fitch Co., Alpha Aromatics Inc., ALT. Fragrances LLC, BELLEVUE PARFUM USA, Botanic Beauty Labs., Capri Holdings Ltd., Coty Inc., Firmenich SA, Kapoor Luxury Fragrances, PVH Corp., Ralph Lauren Corp., Royal Aroma, Shiseido Co. Ltd., The Estee Lauder Companies Inc., and Ulta Beauty Inc..

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Key Market Trends Fueling Growth

The perfume market in the US faces a significant challenge due to the high price point of individual perfume bottles. To encourage sales, vendors employ product bundling as a pricing strategy. This involves selling a deodorant and a perfume from the same brand together at a reduced price. The deodorant is for regular use, while the perfume is for special occasions. Another popular bundling approach is pairing mens and womens perfumes for couples. These bundles make attractive gifts and contribute to high sales. By offering cost-effective deals, vendors aim to attract price-sensitive customers and boost the perfume market in the US. 

The US perfume market is experiencing notable trends with light-scented fragrances gaining popularity among millennials and Gen Z population. Celebrity endorsements and social media influencers are driving sales, particularly among women end-users. Men are also increasing their spending on premium fragrance products. The economic conditions and consumer confidence influence industry revenue, with price competition among operators leading to e-commerce activity and increased sales through online distribution channels like Parfumdreams. Fragrances, oils, and beauty products continue to dominate, with a shift towards waterless scents and sustainable materials such as vanilla beans, balsams, and citrus oil. Vectair Systems and Sensamist are leading product innovations, focusing on product performance and customized fragrances. The industry is growing, with a focus on luxury fragrances, exotic scents, and personal grooming. However, economic conditions and consumer spending impact industry growth, with nonessential businesses like perfumeries and beauty salons facing challenges. Synthetic chemicals remain a concern, but the industry is responding with product diversification and artist collaborations to meet changing fashion trends. 

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Market Challenges

• The perfume market in the US faces challenges due to the prevalence of counterfeit products in the industry. In 2023, the global market for counterfeit goods, including perfumes, generated significant revenue from various sectors. Young people and the middle class, drawn to the aspirational appeal of premium perfumes, often resort to purchasing counterfeit versions due to their affordable prices. These imitations, while visually similar to the original, may contain harmful materials and negatively impact the skin. Online platforms selling counterfeit perfumes contribute to their proliferation by offering unrealistic discounts. Companies manufacturing counterfeit perfumes use deceptive packaging to mislead consumers. These factors pose a threat to the growth of the perfume market in the US during the forecast period.
• The US perfume market faces several challenges. Light-scented fragrances are gaining popularity among millennials and Gen Z, who prefer subtle scents. Economic conditions and disposable income impact consumer confidence, affecting industry revenue. Price competition is intense, with operators focusing on e-commerce activity and brick-and-mortar stores facing challenges as nonessential businesses. Fragrances, oils, and beauty products see increased demand for waterless scents, sustainable materials, and customized offerings. Vanilla beans, balsams, and citrus oil are popular ingredients. Vectair Systems and Sensamist lead in product performance. Premium fragrance products, personal grooming, luxury fragrances, exotic fragrances, and consumer spending continue to drive industry growth. Artists create customized scents for beauty salons and perfumeries, while product diversification and innovations remain key. Synthetic chemicals face scrutiny, and the industry responds with natural alternatives. Changing fashion trends also impact fragrance preferences.

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Segment Overview 

This perfume market in US report extensively covers market segmentation by

1. End-user 
• 1.1 Women
• 1.2 Men
2. Distribution Channel
• 2.1 Offline
• 2.2 Online
3. Geography 
• 3.1 North America

1.1 Women-  The perfume market in the US is a significant sector with steady growth. In 2020, sales reached approximately USD11.5 billion. Major players include Procter & Gamble, L'Oreal, and Estée Lauder. Consumers prefer fragrances for various occasions, driving demand. Online sales are increasing due to convenience and wider product selection. Market trends include genderless fragrances and natural ingredients. The future looks promising with continuous innovation and consumer preferences shaping the industry.

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Research Analysis

The perfume market in the US is thriving, driven by the growing demand for personal grooming and the allure of luxury, exotic, and premium fragrances. Exotic and customized fragrances are particularly popular among millennials and the Gen Z population, who value unique experiences and self-expression. Beauty salons, perfumeries, and department stores continue to be key retail channels for perfume sales, but online distribution channels are gaining popularity. Light-scented fragrances are also on the rise, appealing to those seeking subtle and sophisticated scents. Brands like Lavanila are capitalizing on the trend towards natural and organic fragrances. Celebrity endorsements and social media influencers continue to shape consumer preferences, while mass fragrance products and premium fragrance products cater to different budgets. Advertisement strategies are evolving to include digital and experiential campaigns to engage consumers and build brand loyalty.

Market Research Overview

The perfume market in the US is a thriving industry that caters to the personal grooming needs of consumers with a focus on luxury and exotic fragrances. The industry's growth is driven by consumer spending on premium fragrances, product diversification, and innovations. Synthetic chemicals are commonly used in perfume production, but there is a growing trend towards using sustainable materials such as vanilla beans, balsams, and citrus oil. Changing fashion trends, millennials, and Gen Z population are key factors influencing the market. Light-scented fragrances and customized scents are popular among women, while men prefer stronger, woody scents. Fragrances, oils, and beauty products continue to dominate the market, with waterless scents and sustainable materials gaining traction. Economic conditions, disposable income, and consumer confidence significantly impact industry revenue. Operators face price competition from e-commerce activity and brick-and-mortar stores, which remain nonessential businesses during economic downturns. Perfumeries, beauty salons, and artist collaborations contribute to product innovations. Celebrity endorsements and social media influencers also play a crucial role in marketing fragrances. Vectair Systems and Sensamist are notable companies offering scent marketing solutions. Product performance and premium fragrance products remain the focus of industry operators.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• End-user
• Women
• Men
• Distribution Channel
• Offline
• Online
• Geography
• North America

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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