The US fragrance market is experiencing healthy growth after experiencing declines associated with the economic recession, a recent Mintel study has revealed.
Due to estimated growth of 6% in 2012, the study expects the industry will reach more than $3.5 billion in sales by the year end. Improved consumer confidence, increased product launches and strong performance in retail channels outside of FDMx—food, drug, and mass merchants excluding Walmart—is driving growth.
The study expects positive sales growth for both the women’s and men’s segments through 2017. In the women’s segment, celebrity and fashion house fragrances continue to remain popular though more unique positioning such as destination-based fragrances, which is paving the way for increased innovation in the category. The men’s segment continues to see growth in FDMx from power players like Axe and Old Spice driven by items like body sprays. In addition to strong sales growth, responses to Mintel’s consumer survey indicate that increased product innovation in the fragrance category is due.
Survey results show strong consumer interest in added product benefits like mood boosting and anti-aging, as well as innovative forms and extending scent into additional product categories. Healthy category growth, combined with increased product innovation makes this an exciting time for the fragrance industry.