The fragrance industry has a reason to be optimistic. In 2011, fragrance growth exceeded the industry average for the first time in over a decade in the United States.
After several years of declining sales, fragrances experienced high growth in 2011 as more consumers turned to fragrances as an affordable indulgence. The increase in sales seen in fragrances for women was higher than those for men, with fragrances for women accounting for over 70% of total sales across all trade classes. Many factors have contributed to this growth, but the one that stands out the most is the fragrance industry’s close correlation with the economy. Even though the US beauty market has surpassed pre-recession levels, representing robust growth of 4.2% and exceeding $38 billion in sales at the manufacturers’ level, the fragrance market has not – yet. Fragrance sales are still below peak sales from 2007. Fragrances account for 9% of the total US personal care market. Though the market share may seem small, it remains an important and integral part, associated with classic beauty and prestige more than any other product class.
Put in numbers
Total manufacturers’ sales of fragrances grew by 6.0% to $3.7 million in 2011, with increases across both categories for men and women. The luxury trade class in particular experienced above-average growth of over 10%, where premium niche fragrances were a particularly successful trend in 2011. Limited distribution scents from brands such as Bond No. 9, Creed, and By Kilian gained high visibility during the period. Conversely, celebrity scents saw substantial declines.
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