Organized deodorant and perfume players to dominate the fragrance industry in India by 2022: Bonafide Research
Factors like rise in young population, noticeable demand for fragrance products from tier II and tier III cities, hotter Indian climate and big players entering the market space is resulting in increased demand for fragrance products.
The fragrance industry's rapid growth is attributed primarily to the advent of functional products with several characteristics. The fragrance market of India has been categorized into perfumes and deodorants, out of which deodorants have been doing pretty well since past few years. However since ages, Indian people have used perfumes and perfume oils on their body. The late 19th century was the first real era of perfume when new scents were created because of advances in organic chemistry knowledge. Synthetic perfume products were used in place of certain hard to find or expensive ingredients. The fragrance market in India has been on a high, in terms of production, consumption, import as well as export and is in the process of growing exceptionally with more youngsters wearing fragrances. Youngsters are infusing perfumes and deodorants in their daily personal grooming routine. The Indian fragrance market is further differentiated between organized and unorganized markets.
According to a recently published report by Bonafide Research, "India Fragrance Market Outlook, 2022", the organized market for fragrance products like deodorants and perfumes is set to grow extraordinarily and reach to a total market size of around INR 6500 crore by 2019. The expanding product lines due to significant technology advancements and growing importance towards personal grooming & appearance; coupled with increasing consumer spending on beauty and wellness has contributed to the growth of fragrance market. The Indian market for fragrances consists of organized players like HUL, ITC, J.K Helene Curtis, McNroe Consumer Products, Marico, Nivea etc. which are giving tough competition to unorganized players. Foreign giants like Avon, Coty, L’Oréal have also set up their shops locally and are expected to compete rigorously to gain an upper hand in the market.
In the past, attar and alcoholic perfumes were the only significant categories of the fragrance market, and were mostly represented by unorganized players with the major chunk largely imported. However, with the passage of time more and more organized players have entered the market, thus increasing the overall market size and making it even more compelling for the unorganized players to introduce new cost effective products. Organized players are keeping their product prices in traction so as to capture a larger size of the market as India consumers have a tendency to buy a product that is low-cost and doesn't burn a hole in their pockets. Significant upward growth trend is expected, given the increasing scale of local firms and the need and demand for standardization of products. High-end sophisticated fragrances are set to have an increase in demand as consumers look to impress their peers, subordinates in office environments.
Major companies operating in the fragrance market of India are Hindustan Unilever Limited, Vini Cosmetics Private Limited, ITC Limited, Nivea India Private Limited, McNroe Consumer Products Pvt. Ltd., Marico Limited, J.K. Helene Curtis India Limited, Cavinkare Private Limited, Burberry India Private Limited, Coty India Beauty and Fragrance Products Pvt. Ltd., Avon Beauty Products India Pvt. Ltd., TTK Healthcare Limited, Emami Limited, Vanesa Care Private Limited, Adjavis Venture Limited, Wipro Enterprises Private Limited and Mankind Pharma Limited.