Fragrance market in India

Presented to:
Prof. Chandramouli

Sec: A Group no: 10

Group members:
Trilochan Mehta 18027
Anusha V 18067
Midhun kg 18103
Giridhar karanam 18133
Saurabh Shirodkar 18166
• India has always been a land of olfactory indulgence, where aromatherapy,
incense and attar have existed since ancient times.
• Earlier used for healing purpose.
• At present, Indian fragrance industry is one of the largest in terms of
production, consumption.
• rich diversity in flora and fauna with its 15 Geo- climatic zone, can
produce organic fragrant raw materials which have great demand in the
world.
• Both organized and unorganized market
• Organized market: Armani, Chanel, Calvin Klein, Dior, ESCADA, Hugo Boss,
Lacoste, Ralph Lauren, Vini Cosmetics, ITC limited, HUL.
• Unorganized market: attar
• Mens Market – 60% womens- 40%
• Main market in urban area and least in rural area
• 75% occupied by international players, 40% growth year on year
• Luxury and prestige brands such as Rolex, Louis Vuitton and Cartier
• Premium brands are those brands like Polo Ralph Lauren, Calvin Klein
and Tommy Hilfiger
• Fashion brands on the other hand are those that address the masses
which has fogg as leader.
• It is classified as personal care, fabric care, Household care, Fine
Fragrances & Alcoholic Fragrances.
• Price of the product depends on the raw material cost(chemicals),
brand and applications of the product.
• Educating the consumer is the most difficult aspect of perfume retail
in India.
• Demand in tier 2 and tier 3 cities are increasing, companies are
focusing to provide products used in summer and affordable.
• Advertisement plays a key role in fragrance industry.
Research objective
• India perfumes and deodorants market stood at $890 million in 2018
and is projected to grow at a CAGR of over 17%, to reach $2.4 billion
by 2024.
• perfumes and deodorants manufacturers are offering a wide variety
of innovative products such pocket perfumes, herbal perfumes, roll-
ons, etc., which is further stimulating market demand across India.
 Global Fragrance Market 2019-2023

https://www.businesswire.com/news/home/20190701005401/en/Global-Home-Fragrances-Market-
2019-2023-Increasing-Emergence
https://www.statista.com/statistics/259221/global-fragrance-market-size/
 Fragrance market in India
• Revenue in the Fragrances segment amounts to US$303.9m in 2019.
The market is expected to grow annually by 4.3% (CAGR 2019-2023).
• In global comparison, most revenue is generated in United States
(US$8,159m in 2019).
• In relation to total population figures, per person revenues of US$0.2
are generated in 2019.
Segmentation
 Key Trends in Fragrance Market
• Increasing demand for natural aroma ingredients coupled with high investment in
R&D of aroma ingredients are fueling the market growth
• Demand for the natural ingredients segment will grow with a CAGR of 4.6% from
2019 to 2026
• The homecare and personal care segments collectively accounted for about 73.7%
aroma ingredients market share of the market in 2018, with the former
constituting around 48.9% share
• By application, the home care segment accounted for $5,575.7 million, and is
estimated to reach $7,851.1 million by 2026, at a CAGR of 4.4% during the forecast
period
• Nowadays almost 90-95% of the raw materials used in fragrance creation are
synthetics and only 5-10% is of natural origin.
• Consumers‟ fascination of fragrances has only increased with time as the
manufacture of fragranced personal care, laundry care and household care
products is ever growing.
 Major Players in Fragrance Market in India
• Vini Cosmetics Private Limited- Fogg
• Itc Limited- Engage
• Nivea India Private Limited
• Hindustan Unilever Limited- Axe
• Emami Limited- HE
• Baccarose Perfumes & Beauty Products Pvt. Ltd.- Vercase
• J.K Helene Curtis Limited- Park Avenue
• Mcnroe Consumer Products Private Limited- Wild Stone
• Godrej Consumer Products Limited- Aer
• Marico Limited- Set Wet
https://economictimes.indiatimes.com/industry/cons-products/fashion-/-cosmetics-/-jewellery/fogg-engage-top-
the-deo-charts-as-axe-falls-to-fifth/articleshow/67083621.cms
KEY GROWTH DRIVERS

• Multi purpose products

• Shifting trend to organic based cosmetics
• Increasing research & development activities
• Growing demand for innovatively packaged cosmetics
• New product developments happening in the market
Challenges & Restraints

• Under-penetrated market
• Metro-centric
• Difficulties in segmentation of the market
• Tough and low income rural market
Key players snapshot
 International Flavours and Fragrances India Private Limited
• Founded in 1889
• Head quarters in New York
 Givaudan India Pvt Ltd
• Founded in 1895
• Head quarters is in Switzerland
 Firmenich Aromatics India Pvt Ltd
• Founded in 1895
• Head quarters is in Switzerland
• Chairman & MD-Satish Rao
 S H Kelkar and company Ltd
• Founded in 1922
• Head quarters is in India
• CEO-Kedar Ramesh Vaze
 Future Outlook of Fragrance Market
• The Indian market size of home fragrances is nearly US$ 200 million, constituting less than
3% of the global consumption.
• As per Research and Markets’ data—an international business intelligence platform—the
fragrance industry in India growing at a CAGR of 32.7%
• People are becoming more serious about their lifestyle and personal care, and fragrances
are perceived as a quintessential part of that.
• There is a growing appetite for not just perfumes & deodorants, but also for home
fragrance products such as sprays, candles, scented oils & diffusers. It is estimated that
around 40% of the overall fragrance industry is run by such home fragrance products.
• Fragrance market in the developed nations have fully matured with sales almost stagnant
• Competition is intense in the Fragrance industry in terms of quality and price rendered to
the end user.

https://www.franchiseindia.com/content/demand-for-home-fragrance-industry.13522