The perfume and fragrance market - Spain

Perfume is a cosmetic product composed mainly of essential oils and alcohol. Perfume is distinguished from eau de parfum and eau de toilette, which differ in their alcohol concentration and manufacturing process. The global perfume market is dominated by the Asia-Pacific region, followed by North America and Western Europe. Global companies such as Chanel, Dior, or L'Oréal are in a dominant position, and barriers to entry are high, as the marketing expenditure required to promote the product is very high. In fragrance creation, the world's leading companies are Givaudan and Interparfums. In Spain, the fragrance industry is extremely powerful, exporting well beyond its borders. In 2021, fragrance exports were up 46% on their previous level, exceeding 2019 levels. Spanish products are renowned for their value for money and quality, and Spain is now the world's second-largest perfume exporter. On the domestic market, consumption fell sharply as a result of the health crisis. The decline in social interaction and the closure of bars and nightclubs did not encourage Spaniards to buy perfumes. In addition, the spread of telecommuting has reduced fragrance consumption in the workplace. However, the outlook for Spanish brands has brightened considerably in 2022, as business picks up again, even if there are concerns about Spaniards' purchasing power in the face of inflation.