Content of the study:
The perfume and fragrance market - Italy

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MARKET OVERVIEW

1.1 Definition and scope of the study

The perfume market refers to the market for scented liquid typically made from essential oils extracted from flowers and spices, used to give a pleasant smell to one's body. These are often alcohol-based.

Every year about 400 new patented perfumes are released into the global market, which is worth about $48.42 billion. Consumers are constantly looking for products belonging to this market, seeking out intoxicating fragrances even from Italy, which is the world's fifth largest market in the trade of these products. Perfumes represent the third highest purchase for the Italian household within the 'body care' sector (preceded by facial and body care products)

Until the COVID-19 pandemic and the economic environment it unleashed, this sector was booming in previous years (fluctuating between 2-3.5 percent year-on-year, 2.3 percent in 2019). The domestic market increased by 1.9 percent while the export market grew by nearly 3 percent. Despite regular price increases in perfumeries and large retail centers, this market continued to grow, making up about 20% of the Italian cosmetics sector. The year 2020 was the first year of market contraction in more than a decade with a 12.8 percent decline, with the domestic market contracting 9.8 percent and exports dropping 16.5 percent.

The perfume sector is markedly segmented in terms of sales with four main types of sellers:

  • Perfumeries (individual perfumeries, local franchises and branded stores that sell other products but also perfumes) account for 75 percent of the market share
  • Large retailers
  • Parapharmacies
  • Supermarkets, hypermarkets and other forms of distribution account for less than 1 percent

Production is unevenly distributed in a geographical sense, with more than 50 percent of production centers and companies in the northern region of Lombardy, followed by Emilia Romagna with about 10 percent and Veneto with nearly 8 percent. The north largely dominates the south in terms of production, with 3 southern regions not even ranked due to low production levels. Italy also hosts 7 annual free perfume exhibitions, which help spread new fragrances to the general public.

With the economic downturn of the pandemic, the perfume industry in Italy has seen a boost during the holiday season (such as Christmas), as perfumes tend to be popular and easy gifts.

1.2 The global perfume market

The global perfume market is growing rapidly, reaching a value of about $**.** billion in **** . The industry is expected to grow at a CAGR of *.* percent over the forecast period from **** to ****.

The fragrance industry is strongly driven by the growing popularity of different types of fragrances among millennials, as well as ...

1.3 The Italian domestic market

The Italian cosmetics market has been estimated at **.* billion euros in ****, growing by *.*% compared to ****; this sector, being constantly growing, represents a significant part of Made in Italy production. In line with the global trend, the perfume and fragrance market accounts for **.* percent of the turnover of the Italian cosmetics market, ...

1.4 Exports and imports

The Italian cosmetics market depends largely on exports: its trend has been growing for more than a decade, and although this slowed down slightly in ****, and then recorded a significant drop in **** (***) has been noted since ****. The positive numerics, in light of the sector's responsiveness, represent characteristics of resilience, investment and ...

1.5 The impact of Covid-19 on the perfume market

The pandemic has had a major impact on the cosmetics market and the perfume and fragrance industry in particular, on the one hand causing several difficulties and major losses, but also accelerating transformations and changes that were taking place before ****.

The Italian cosmetics market shrank by *.* percent, the total turnover of ...

1.6 The impact of the Russian-Ukrainian conflict

The outbreak of the Russian-Ukrainian conflict in February **** led to a general increase in the consumer price index in various economic sectors. With regard to the perfume sector, we analyze the broader item-present in the ISTAT database-including Personal hygiene and wellness articles, which does not appear to be exempt from this ...

DEMAND ANALYSIS

2.1 Demand characteristics

Turnover generated in traditional and digital channels

The following is an overview of perfumery turnover in recent years; in **** the value of turnover is *.* million euros, down from ****(***). A percentage change of *.*% is expected in **** . **** **** **** Var. % '**/'** Var. % '**/'** Var. % '**/'** Var. % '**/'** Perfumery sales *.*** *.*** *.*** **,*% -*,*% **,*% *,*%

According ...

2.2 Factors influencing demand

Perfumes are considered by many to be luxury and sophisticated items and, as such, are often chosen as gifts for special occasions. This determines attests to a strong seasonality of the market, which increases in size during the holidays. The market is certainly influenced by the growing propensity to seek out ...

2.3 Geographical distribution of demand

To visualize the geographic distribution of demand, a map was created with monthly household spending on personal care items and products by Italian macro-region, which is assumed to be in line with monthly household spending for the perfume subgroup.

The north presents the highest figure, with **.** €/month, in the center the ...

2.4 New demand trends

Trends in the fragrance market for **** revolve around the pursuit of sustainability, innovation, and individual expression. Key trends that need to be taken into account in this industry are:

environmental sustainability and health awareness: the fragrance industry in **** is characterized by an increasing focus on environmental sustainability and health. Consumers are ...

MARKET STRUCTURE

3.1 Market structure and dynamics

The perfume and fragrance market represents a fascinating sector deeply rooted in the tradition and culture of many societies. Perfumes are an essential element of personal toiletry for men and women, which is why consumers have a constant demand for them. Manufacturers range from historic and luxurious brands to newcomers seeking ...

3.2 Value Chain

The value chain in the fragrance market, involves several stages starting from fragrance development and production to retail and final consumption.

Research and development: at this stage the fragrance is created by perfumers, which will be tested to ensure that quality and safety standards are met. Procurement ofraw materials: the purchase ...

3.3 Distribution channels

After perfumes are compounded and encapsulated, they are distributed through multiple distribution channels and sold to consumers. The main distribution channels for perfume markets are as follows: perfumeries, mass retailers, and parapharmacies. Supermarkets also play a role in product distribution, but they account for less than * percent of total sales.\ ...

3.4 Main market players

Leading fragrance companies represent a combination of tradition, innovation and mastery in the art of perfumery. Many of these companies have a history that begins centuries ago and, to this day, continue to set olfactory trends globally, enchanting consumers with unique and memorable fragrances. Prominent names include historic houses such as ...

SUPPLY ANALYSIS

4.1 Production and classification of perfumes

Production

Once the raw materials are obtained, the perfume is produced by observing steps:

The perfumer mixes different essences (***) to create what is called a perfume base; This perfumed base is diluted in alcohol depending on the concentration chosen for the type of article (***). Distilled water is also added; This mixture ...

4.2 Fragrance composition

A perfume can be broken down and analyzed according to what is called the "olfactory pyramid, " which has three levels.[***] Main notes: the smells that can be smelled immediately after spraying the perfume, but also those that fade faster. These are often the freshest and greenest notes, such as bergamot or ...

4.3 Prices of perfumes and fragrances

The table below provides an overview of the prices per *** ml of the best-selling perfumes in Italy. The fragrances belong to the premium segment and the average price is about *** €.[***]

4.4 New supply trends

In a time of uncertainty and continuous economic crises, consumers' yearning for psychological well-being intensifies. This shift also shapes the beauty industry, where greater escapism is sought both aesthetically and internally. Timely technological advances will profoundly shape expectations toward products and services through the introduction of new categories and trends. In ...

REGULATIONS

5.1 The production of perfume: Regulation (EC) No.1223/2009

Pursuant to Law **/**/****, No. ***, Art. **; Legislative Decree **/**/****, No. ** - Regulation (***) No.****/****, Art. **; Ministerial Decree */*/****; Legislative Decree **/**/****, No. ***.

"The production of alcohol-based toiletries, soaps and perfumes requires that the notification of cosmetic products intended for sale on the EU market be submitted exclusively electronically through the centralized system called Cosmetic Product ...

POSITIONING OF PLAYERS

6.1 Segmentation

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Reviews (1)

Reviews (1)

The perfume and fragrance market - Italy

Publicado en 14/11/2022 by Luca Recchia - Deversus di Luca Recchia

Je l'ai trouvée très complète, bien écrite et bien référencée quant aux sources citées. Un très bon outil pour obtenir une connaissance préliminaire, rapide et pourtant suffisamment approfondie d'un marché qui ne m'est pas familier.


Businesscoot Response:

Merci beaucoup Luca pour ce commentaire et pour la confiance accordée.

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