Prestige Fragrance Continues Growth in Holiday Shopping Festival
- Chaileedo Press
- Dec 16, 2022
- 2 min read
NPD, a global market information company, released data that fragrance sales grew 4 percent from Oct. 4 through Dec. 2.
“Fragrance sales reached new heights following the pandemic, and it’s particularly impressive that the market is maintaining this elevated level rather than softening, which is typically the case after such an unprecedented performance,” Larissa Jensen, beauty industry adviser at NPD, said in a statement.
Last month, NPD reported that fragrance sales reached $1.3 billion in the third quarter of 2022, up 11% from a year ago. prestige beauty grew 15% in the quarter, with sales reaching $6 billion.
And it's likely to see even more impressive gains this year.
“Considering that most holiday shopping for fragrances occurs within the two weeks leading up to Christmas, and December alone accounts for over 50 percent of fourth-quarter sales, much of the fragrance category’s sales success for 2022 is yet to be determined,” said Jensen.
And the Chinese perfume market should not be underestimated. CHAILEEDO data shows that China's perfume is expected to achieve 20.15% year-on-year growth in 2022, reaching 16.1 billion yuan (about $2.3 billion), with growth rates far exceeding categories such as cleansing and makeup remover, essence, mask and personal care. In this year's Chinese Double 11 Shopping Festival, a growth rate of perfume on TikTok China was about 20%. The fragrance has become a new market trend.
OIBP data shows that the overall size of China's fragrance market is expected to reach 30 billion yuan (about $4.3 billion) in 2025, a figure that is three times the growth rate of the global market. In this tens-billion-yuan market, the market share of mass perfume will decline by about 15%. While at the same time, the niche perfume and its representative high-end market will grow by 18%.
The international beauty giants have also invested more in high-end perfumes in recent years. Recently, Estee Lauder spent $2.8 billion to buy Tom Ford. The latest financial report verified the right decision of Estee Lauder to increase the code of perfume - in Estee Lauder's fiscal year 2023 Q1, it declined 11% YOY. While Tom Ford and Le Labo perfume achieved double-digit growth, Jo Malone also had high-single-digit growth.
L'Oréal is also ambitious with high-end fragrances. It announced a month ago that its Fine Cosmetics division has set up a new luxury fragrance brand division. Maison Margiela, Atelier Cologne, Viktor&Rolf, Azzaro, Diesel and Cacharel will be moved to the division. After Atelier Cologne and Mason Margiela, PRADA perfume has become a potential brand for L'Oréal Group to bet on the Chinese market.
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