How Large Is the Perfume, Cologne & Fragrance Industry?

Perfumes are now part of fashion. With that, it has been a custom to want to smell good every time you slip on something nice to wear. Not to mention, it is cool and trendy, but it comes at a price. The stats are staggering, and the perfume industry is now a multi-billion dollar business with big profit projections never too far off the mark. The world fragrance industry is estimated to be around 30 billion dollars annually! This figure is expected to hit the 45 billion dollar mark by the end of 2018, according to data by the Global Industry Analysts. Big players include L'Oreal, LVMH and IFF, among others. The industry is ever evolving and new brands and designs pop up in our stores very often, so much that we can’t keep up with the count.

The Perfume Industry and the Pop Culture
What has spearheaded the humongous growth in the perfume industry over the years is the demand for celebrity scents. Designers are keeping up to speed with trends in culture, urbanization and personalities. Celebrity names have successfully launched designs and spiked up sales for perfume companies. Driven by the desire to identify with a certain superstar, people will stretch the limits of their budgets to acquire even the ludicrously expensive fragrances. This just shows how perfumes have evolved and taken a fundamental place in our lives as a means of expressing who we are.

Marketing
The extent to which the perfume and fragrance industry has taken over the market shows just how large the perfume industry is and how profitable it becomes over time. Higher profit margins can only be realized where there is a huge market for a product. Perfume manufacturers scramble for market share by developing a huge following through advertisements both offline and online with social media playing a huge factor. The media has been successfully used as a marketing tool by designers, while trendsetters are used to influence others to take a stab at new designs.

Exquisitely Designed Bottles
The contents of the perfume bottle does not take up as much in the production cost, so their hefty price tag in retail stores isn't an exact translation of that. What makes perfumes expensive is the design bottles and boxes. Big manufacturers understand that packaging is the backbone of any marketing endeavor. Big perfume manufacturers go as far as to commission renowned artists to sculpt exquisite bottle designs for their perfumes to help them stand out among the crowd.

The Young Market
The perfume industry is concentrating their marketing and advertising towards teenagers, where there is a huge potential for growth. Trends in fashion, music and the whole entertainment industry has helped to increase the demand. A large number of designs and brands are, are targeting the females, which makes up a large marjority of the perfume industry.

Men’s Perfume
Men’s perfume currently accounts for about 30% of the perfume. Women have been the anchor clients of the perfume industry for centuries. Nonetheless, it is important to acknowledge that men’s fragrance has been picking up. Cultural dynamics are shifting and it is more common for men to groom themselves and smell nice as well. Men’s perfumes continue to climb and designers are starting to create more unique male fragrances.

In the world today, perfumes have become as important as clothes. For potential investors, the perfume industry is undoubtedly a high profit venture and there is no shortage of new fragrances popping up in stores.  It's entertaining to watch as the fragrance industry as a whole continues to expand.

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