Fragrances: One of the Slowest Growing Sectors in the US Health & Beauty Industry
19 August 2013
As the US slowly moves out of recession, consumer demand for fragrances remains relatively low. Female Fragrances remains the largest sector of the category, but Male Fragrances will show the highest growth to 2017.
Although the US economy is expected to make a strong recovery from its recessionary state leading up to 2017, consumer demand for Fragrances remains relatively weak, according to a new report from Canadean. With a volume Compound Annual Growth Rate (CAGR) of 0.9%, the sector is forecast to be one of the slowest growing in the US Health & Beauty Industry to 2017. It will remain ahead of only the Haircare sector, but well behind other mature sectors such as Male Toiletries, Suncare and Oral Hygiene. Value growth is expected to be higher, at 1.6%. However, the value of Mass Fragrances across Female, Male and Unisex Fragrances categories will grow faster than Premium Fragrances, showing that value growth is being driven by trading-up within the Mass market.
Male Fragrances is the second largest category in the US Fragrances sector with a 30.9% share of the market in 2012 in both value and volume terms, but it is forecast to be the fastest growing to 2017. Both value and volume are projected to increase above the line at 1.7% and 0.9% respectively.
The share taken by Female Fragrances in 2012 was double that of Male products, at 66.4% of the market. Category growth is forecast to be slightly lower than that of Male Fragrances, although it will mirror the sector average for both value and volume CAGR. Unisex Fragrances took 2.6% of the market and has a projected value CAGR of 1.6% to 2017. Volume growth is expected to be slightly better than the sector average, at 1.0% for the same period.
Health & Beauty Stores record the best growth in 2012
Hypermarkets & Supermarkets, Department Stores and Drug stores & Pharmacies together accounted for almost three quarters of all Fragrances distribution in 2012. Whilst all three channels witnessed improved share, it was Health & Beauty Stores which saw the best growth, perhaps indicating a move towards more niche products at a premium price.
These findings were based on information from Canadean’s new report: “The Future of the Fragrance Market in the US to 2017”.
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