All health and beauty categories in India will witness positive growth over the next five years, according to new report from market researcher Canadean, and fragrance is among the fastest growing sectors.
With a value Compound Annual Growth Rate (CAGR) of 20.2%, Canadean said the fragrance sector is the second fastest growing sector in the Indian health and beauty industry towards 2017, with only the personal hygiene sector ahead of it. The firm predicts the volume of the fragrance sector will grow at a CAGR of 16.5% for the same period.
In particular, it said the women's fragrance sector will grow ahead of the Indian fragrances sector to 2017. Some popular western female fragrances are used by both men and women in India, particularly those with notes of jasmine and bergamot. This has helped the women's fragrances category hold the largest share of the sector in 2012, with value and volume shares of 45.6% and 47.1%, respectively. The category is also expected to display the highest growth over the next five years at a value CAGR of 21.0% and volume CAGR of 17.2% to 2017.
Both men's and unisex fragrance categories are expected to grow at a value CAGR of 19.5% towards 2017, with unisex growing ahead of men's fragrances in terms of volume, at a CAGR of 16.2% to men's fragrances’ 15.7%, for the same period.
Health and beauty stores have held the majority share of the sector over the past few years, the report said, and this has shown no sign of slowing, as the channel gained a greater share than any other. Hypermarkets/supermarkets also increased their share of the sector, as department stores lost equal share in the same period.