The perfume and fragrance market - Italy

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