Indian fragrance market pegged to grow 20% in the next 5 years, say experts

The domestic fragrance market is valued at $500 million (around Rs 3,600 crore), a small slice of the $24 billion global industry, as per industry reports. In India, the growth rate has been approximately 11% in the last few years, but is projected to grow exponentially in the upcoming years due to rising personal care, brand awareness, increasing disposable income, growing demand in middle-class people and affordable price of fragrance in the form of mass perfumes & deodorants.

With a paradigm shift in the social construct globally and with an understanding of gender fluidity, unisex fragrances are gaining popularity. There seems to be a wave triggered that believes that the choice of fragrance is gender agnostic, with more than 72% of the population willing to try a unisex perfume.

According to Manish Vyas, Business Head, Yardley India, “The fragrance category is still evolving in India and will grow further by brands segmenting and positioning themselves .The category has mainly been driven by basic benefits like freshness and male appeal to opposite sex. I am sure as more brands and formats evolve, the market will mature with brands taking a more clear and differentiated positioning.”

In India, deo body sprays are seen as the basic, affordable daily usage fragrance solution. Perfumes in a box are seen as more premium and for occasional usage and are mostly gifted. However, brands have played an important role in exposing the market to the dream and allure of glamour.

Umashan Naidoo, Head of Customer, Westside, noted, “Both deo and fragrance have been phenomenal businesses for us. From the concept and smell to the packaging design, we handle the creative process from end-to-end internally. We believe this is the key. The scent is a reflection of the brand and we are not negotiable with the elegance of smell and the quality of the ingredients.”

Yardley India’s Manish Vyas added here, “New formats like Daily wear Eau De Colognes by Yardley at affordable price points are blurring this gap and helping consumers to upgrade to a far better product. The same perfume is launched by Yardley in compact perfume format at price point of Rs 75 in a handy pocket format so that consumers can use it on the go. Our experience from markets like Indonesia and Malaysia is that if we are able to offer superior perfume formats at affordable price points, consumers will shift to perfumes rapidly and also help improve penetration.”

As per various reports, the fragrance market in India is expected to reach Rs 139.44 billion by 2024, expanding at a compound annual rate of 15.93% during the forecast period, from its 2019 value of Rs 66.58 billion.

This market is further segmented into perfumes, deodorants and other products. In 2019, deodorants held the largest share (60.65%), followed by perfumes (32.14%) in terms of revenue.

Given the growing Indian market, which is estimated to grow at a CAGR of more than 15% over the next five years, out of which the aerosol and spray forms are expected to continue their dominance over 2017-2022. Taking into account the surge of natural ingredients based deodorants, a 20% growth is estimated in the next 5 years.

Dipali Mathur Dayal, CEO, Co-Founder, Super Smelly, shared, “The brand’s communication strategy has been to be young, fun and deliver safe and effective products to the conscious GenZ. We take to channels like Instagram and participate in school and college integrations for spreading the word. Given that our category is so innovative in itself that it alone creates a deep differentiation from the other run-of-the-mill products in the market.”