Fragrance category enters troubled waters

With economic circumstances in Western Europe looking darker, and increasing pressure on emerging markets, recent performance of the fragrances category is extraordinary. In circumstances where China accounts for 40% of GLOBAL growth in 2011, however, challenging times lie ahead.

Research experts predict fragrances growth rates over the next few years from major markets such as UAE, China and especially the huge Brazilian market, to be in double digits. Even the UK is predicted to be a star (relatively) set against stuttering growth in France, Germany, Italy and Spain.

It’s pointed out that growth is derived from different sources however, be it cultural hedonism in Brazil, premiumisation in the UK and super premiumisation in Russia and other BRICs. Remarkable resilience given the uncertainties, although greater differentiation will be ever more important for brand health in testing times.

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