I’m always interested in the financial side of the fragrance industry, even though I sometimes can’t make heads or tails of the specific fine point and details. I recently found some numbers for a few of the corporate giants like Givaudan whose ingredients are often the building blocks for the perfumes we wear and whose perfumers create some of the many fine fragrances released each year. The numbers demonstrate something we already knew: traditional Western fragrance markets are weakening, and the future for many perfume companies lies in emerging markets. [Update: In 2014, I took a more in-depth look at a number of Western perfume markets, from Germany to the Netherlands, France, Italy and the UK, but also examined the Indian perfume industry and the Middle Eastern one. There is also a look at the revenue figures for various industry leaders like LVMH, Givaudan, and IFF. You can read all that at: The Global Fragrance Industry. There are also posts on the massive Brazilian market, the Chinese and Japanese ones, and a 2/2014 post on the U.S. market. In another 2014 post focused more on the niche market in the context of Frederic Malle, the second half talks about Estée Lauder, L’Oreal, Elizabeth Arden, Coty, and P&G.]
What’s interesting is that Latin America is one of those emerging markets, but the Asian one isn’t quite as strong as everyone may think. In fact, analytical reports from the Euromonitor indicate both the Chinese and Japanese perfume sectors are impacted by socio-cultural issues regarding fragrance use. Still, some of the numbers involved in terms of overall, global perfume sales and revenues are astronomical. Please note, however, that almost all of the articles below focus on the more established and significantly larger commercial fragrance market, not the niche one.