Fragrance industry will grow at 12% CAGR in the next five years: Pushkar Jain
The year 2023 has started on a rollercoaster note, with an accelerated adoption of generative AI, AI chatbots, and digital innovations. This is bringing in new operational efficiencies, stronger strategies, a far greater emphasis on building deep bonds with various stakeholders and consumers. In keeping with the current market ecosystem, technology and a human approach are seen as going hand in hand.
As part of our annual TRENDING NOW series, Adgully has been approaching key industry leaders to Crystal Gaze into 2023 to highlight the major trends and developments that they see dominating the industry in the year ahead.
In conversation with Adgully, Pushkar Jain, CEO & Perfumer at Sawai Fragrances, speaks about the growth trends in the fragrance industry in the year ahead, impact of the focus on sustainability and recycling, changing preferences of the younger generations, and more.
Key industry trends in 2023
The olfactive genealogy in India will see a growth with people wanting to experience new fragrance profiles. The younger generations are the reason for the emergence of this trend as they are conscious of how they smell and the fragrance they wear, which will in spur an interest in fragrances beyond the existing profiles and the rise of new ones. The other factor contributing to the trend is the category of personal grooming, which is growing and includes consumption of perfumes.
However, the trends that will dominate the industry will be influenced by the ongoing conversation around sustainability and recycling, along with the conscious use of materials and their impact on the environment. These factors will be responsible for driving sales in the coming times.
Major expectations from 2023
The fragrance industry has a bright future ahead for the next 4-5 years with an anticipated year-on-year (YoY) growth for the category. Recent reports have, in fact, predicted the industry will grow with a CAGR of around 12% in the next five years. Customers are getting more conscious of what they are consuming and are demanding good quality products and brand owners will be responsible for driving sales in the coming years and meeting this consumer demand, thus leading to the growth of the category as a whole.
Major focus for Sawai Fragrances in 2023
As Eze is a newly-launched brand, the focus for our company will be to increase the visibility of our brand so that we can reach more people and get them to try the fragrances. We will also be focussing on the area of distribution and sales, through modern and general trade, along with creating a strong online presence to drive sales for the brand. We aim to launch new products by the end of this year and continue to grow our library of fragrances.