Summary

Since 2020, the global perfume market has experienced significant fluctuations. The onset of the COVID-19 pandemic led to a notable downturn, with a 12.8 percent decline in the market, domestic sales in Italy contracting by 9.8 percent, and exports dropping by 16.5 percent. However, the Italian domestic market showed resilience with a rebound of 18.1 percent growth in 2022. As for the global market, it was valued at approximately $48.42 billion in 2023 and is forecasted to grow at a CAGR of 5.5 percent from 2024 to 2032. The premium segment is expected to dominate the market due to its popularity with young consumers. Despite the pandemic, the export market for Italian perfumes saw a recovery with a 30.7 percent surge in 2021, with the United States becoming the top destination, accounting for 12.9 percent of the total exports. The pandemic also accelerated the shift to e-commerce in the sector, with a 42 percent increase in online sales. Overall, the perfume market is bouncing back with innovation and higher online sales post-COVID.

Evolving Trends in the Italian Perfume Market

The perfume landscape in Italy has mirrored the complexities of the global market, with the allure of fragrance enduring despite economic downturns. The Italian perfume market, a segment that has traditionally represented a sizeable chunk—approximately between 15 and 20 percent—of the nation's cosmetics sector, has been resilient, adapting to changing demands and leveraging moments of festivity to boost sales. Recent years have seen Italy's perfume market experience a tumultuous journey, particularly during the pandemic year of 2020, which resulted in a market contraction of roughly 10 to 15 percent. However, this sector, valued at around 11 to 12 billion euros, bounced back with an impressive growth of nearly 20 percent in 2022. Consumers’ pursuit of intoxicating fragrances has kept the market buoyant, with the country ranking as the world's fifth largest in perfume trade. Perfumeries have sustained their dominance, claiming around 70 to 80 percent of the market share. Other distribution channels like large retailers, parapharmacies, and supermarkets collectively contribute to less than 5 percent. Geographically, production is predominantly concentrated in the north, particularly Lombardy, with over half of the production centers. Annual releases of new patented perfumes—a staggering number of around 300 to 500—underscore the dynamic nature of the market, a testament to innovation and consumer appetite for new scents. Despite recent shocks to the market, propelled by the global pandemic and economic hardships, the perfume industry’s adaptability has been evident, especially during periods like Christmas, which see a surge in perfume sales as they are considered elegant and highly desirable gifts.

The Italian demand for perfume has geo-demographic nuances, with the northern part of the country spending the most on personal care, followed closely by the central region, while the southern regions show a slightly lower expenditure. This demand trend reflects Italy's economic distribution, with the wealthier northern region leading consumption. Understanding the market's dynamics, Italy's perfume industry has witnessed steady growth in the number of enterprises, rising by approximately 5 to 20 percent from 2015 to 2021. The legal structure of these enterprises is predominantly Limited Liability Companies (LLCs), which offer both flexibility and financial advantage. In summary, the Italian perfume market, within the range of 10 to 20 billion euros, is an intricate blend of tradition, innovation, and strategic market positioning. The market's ability to adapt and innovate, along with its seasonal peaks.

Iconic Fragrance Houses Shaping the Italian Perfume Landscape

In the enchanting world of fragrances, Italy plays host to a medley of both venerable and progressive companies that are not just businesses but emblems of heritage, innovation, and artistic expression. These pillars of the perfume industry have crafted their unique place in the market, each bringing their own story, philosophy, and fragrant concoctions to elevate the olfactory experience of consumers worldwide.

Euroitalia S.R.L. - With a legacy that dates back to 1978, Euroitalia is synonymous with luxury and finesse in the beauty realm. This Italian luminary stands as a beacon of excellence in the creation and international distribution of fragrances and cosmetics, catering to the demands of an audience that appreciates the blend of tradition with cutting-edge innovation. Committed to sustainability, Euroitalia presents itself as a custodian of environmentally conscious luxury.
L'Oreal Italia S.P.A. - As a subsidiary of the global giant L’Oréal Group, L'Oreal Italia is on a mission to democratize beauty in every corner of the planet. Bearing a century's worth of heritage, the brand pledges to grace its customers with unparalleled quality, safety, and a transformative beauty experience, enriched by the diversity of products that cater to a gamut of beauty aspirations and desires.
L. Manetti - H. Roberts & Co. - With roots reaching back to the early 1900s, this Florence-based brand has carved a niche for itself by pioneering the concept of pH-neutral personal care. As the custodian of the Neutro Roberts line, L. Manetti - H. Roberts is lauded for an assortment of gentle, family-friendly toiletries that are ingrained in the daily lives of numerous Italian households.
Beiersdorf S.P.A. - A progeny of a German parent company, Beiersdorf S.P.A. upholds a commitment to skin harmony through its renowned brand, NIVEA. Iconic for its blue tin and its rich legacy, NIVEA continues to resonate with users globally. True to its tagline of 'care for human touch,' Beiersdorf’s Italian venture stands testament to the importance of innovation, trust, and customer connectivity.

the perfume and fragrance market - Italy

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Number of pages : 30 pages
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Last update : 07/11/2023

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Summary and extracts

1 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.

2 Demand analysis

3 Market structure

4 Supply analysis

5 Regulations

6 Positioning of players

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Latest news

From Bulgari 700,000 euros for the setting up of the Mausoleum of Augustus in Rome - 26/03/2024

Funding: 700 thousand euros

- Project: Museum arrangement of the Mausoleum of Augustus in Rome
- Architect in charge: Rem Koolhaas
- Expected opening year: 2026
- Museum size: Largest in Rome
- Previous restoration and enhancement by Bulgari:
- - Restoration of the Golden Staircase of the Doge's Palace in Venice (2006)
- - Restoration of the Spanish Steps at the Spanish Steps in Rome (2014)
- - Restoration of the polychrome mosaic of the Baths of Caracalla (2015-16)
- - Restoration of more than 90 Greek and Roman sculptures from the Torlonia collection (2017)
- - Restoration of the Sacred Area of Largo Argentina (2021)
- - Funding for the lighting of the Ara Pacis
- Number of monuments restored thanks to Bulgari patronage: 6
- Statements:
- - Jean-Christophe Babin (CEO of Bulgari and president of Bvlgari Foundation): commitment to the preservation of artistic heritage
- - Mayor of Rome, Roberto Gualtieri: importance of public-private partnership and Bulgari's contribution to the restoration of significant monuments

Sephora to rapidly increase sales from 12 to 20 billion euros - 23/10/2023

Sephora is the world leader in selective perfumery.
LVMH has owned Sephora since 1997.
The Sephora store on the Champs Elysées welcomes 10,000 visitors a day.
The global beauty market grew by 6% last year to reach 250 billion euros.
Sephora has forecast 17% growth by 2022.
The brand has 2,700 stores.
By 2022, according to analysts, Sephora has almost reached 12 billion euros in sales.

Beauty: how Sephora is expanding in the United States - 07/10/2023

America is its first market
The French group opened its first store there twenty-five years ago
Today, it has 658 directly-operated stores on the American market, including 22 in New York
Sephora is present in 35 markets with 2,700 stores
A $430 billion industry according to McKinsey
The United States will consolidate its position as the world's leading beauty market, growing from $70 billion in 2022 to around $100 billion in 2027 (McKinsey).
The brand contributes 20% of LVMH sales and 12% of the Ebit of the number one in luxury goods.
sephora is America's leading selective retailer.
American retailer Kohl's, which has stores in 29 states, partnered with Sephora in 2020, and they share 862 "Sephora Kohl's".

Kering tackles crucial Gucci relaunch - 23/09/2023

Gucci is the main contributor to the revenues and profits of the Kering luxury group.
Between 2015 and 2022, Gucci sales almost tripled
Gucci's operating margin increased by 10 percentage points to 41% in 2019.
Gucci's goal is to break through the €15 billion sales barrier.
Gucci is forecast to achieve sales of just over €10 billion in 2023, up 3%.
The Chinese market accounts for a large share of Gucci's sales.

Sephora and Zalando end their partnership - 09/09/2023

The partnership between Sephora and Zalando began in Germany in the fourth quarter of 2021.
The partnership was extended to Zalando's other European markets in 2022, including Italy
Two years after the start of the partnership, the collaboration comes to an end.
Sephora is a subsidiary of LVMH.
Sephora's aim in 2021 was to compete with Douglas (Nocibé in France), which has a greater presence in Europe.

Dolce & Gabbana launches its perfumes and cosmetics offensive - 31/03/2023

Dolce & Gabbana inaugurates a space dedicated to its fragrance and make-up ranges at Galeries Lafayette Haussmann in Paris.
Dolce & Gabbana will create its own beauty subsidiary in 2022, following the end of its licensing agreement with Shiseido.
The retail sales volume of this activity is 1.2 billion euros.
Beauty accounts for 20% of the Group's sales volume
The fragrance sector has seen average annual growth of 4% since 2016, and has forecast growth of 17% by 2022.
Dolce & Gabbana has invested 400 million euros in its beauty business and built a dedicated headquarters in Milan that employs 120 people in Milan and another 50 in Miami
Dolce & Gabbana Beauty plans to revamp its make-up ranges and launch its first skincare products in 2025.
The brand's global network of points of sale will be reduced from 25,000 to 15,000 retailers.
The brand plans to open around 100 department store spaces by 2025
Dolce & Gabbana expects to triple sales of its beauty subsidiary to €3 billion over the next five years.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Salvatore Ferragamo

Giorgio Armani

Bulgari

Acqua di Parma

Sephora

Gucci

Givaudan

Gianni Versace

Dolce & Gabbana

Interparfums

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