Fragrance market in India tipped to keep growing


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Related tags Compound annual growth rate

Fragrance market in India tipped to keep growing
India has been identified as having enormous growth potential for the cosmetics industry and a new report from market researcher Canadean suggests there is no sign of a let up, with fragrance the fastest growing sector.

According to the latest report, all Health and Beauty categories in India will witness positive growth over the next five years, and fragrance is singled out as one of the fastest growing sectors, showing no sign of slowing down.

“With a value CAGR (Compound Annual Growth Rate) of 20.2 per cent, the Fragrance sector is the second fastest growing sector in the Indian Health and Beauty industry towards 2017, with only the Personal Hygiene sector ahead of it,”​ says Canadean.

The volume of the Fragrance sector is expected to grow at a CAGR of 16.5 per cent for the same period, and female fragrances are also tipped to grow ahead of the Indian fragrances sector to 2017.

Western influence

This is thanks to some popular western female fragrances used by both men and women in India, particularly those with notes of jasmine and bergamot.

As such, the Female Fragrances category holds the largest share of the sector in 2012, with value and volume shares of 45.6 per cent and 47.1 per cent respectively.

“The category will also display the highest growth over the next five years at a value CAGR of 21.0 per cent and volume CAGR of 17.2 per cent to 2017,”​ says the report.

“Both the Male and Unisex Fragrance categories will grow at a value CAGR of 19.5 per cent towards 2017, with Unisex growing ahead of Male Fragrances in terms of volume, at a CAGR of 16.2 per cent to Male Fragrances’ 15.7 per cent, for the same period.”

Health and Beauty Stores

Health and Beauty Stores have held the majority share of the sector over the past few years, and this has shown no sign of slowing, as the channel gained a greater share than any other.

Hypermarkets/Supermarkets also increased their share of the sector, as Department Stores lost equal share in the same period.

Related topics Market Trends South Asia

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