The market for perfumes and perfumeries - Germany (2023)

1.1 Scope of the study

The cosmetics industry has been experiencing a significant upswing for several years. For example, the sales numbers have known a  7.1% growth in 2022 compared to 2021's numbers. The market for perfumes in particular has proven to be extremely dynamic during this period, with a 33.8% growth recorded, and was able to record an average annual growth rate of 3% between 2017 and 2022. In the perfume segment, body fragrances for women and men as well as room fragrances can be distinguished as trend products. Fragrance creams, aftershave, and deodorants are also included in this segment.

Perfumes are mostly purchased in traditional drugstores (change in sales in 2022: +4.8%) and in perfumeries, (change in sales in 2022: +23.5%). However, increasing digital purchasing behavior among consumers can't be overlooked, as e-commerce in the market recorded a growth of 18.7% in 2022.

Globally, the perfume market is on the rise and plays an important role in global trade. Europe is the largest exporter of perfume, accounting for 29.6% of global perfume exports. The largest companies in the cosmetics industry are Estee Lauder, L'Oreal, LVMH, and Puig, which are sharing 60% of the global fragrance market and thus have a high market concentration.

However, the fragrance market also presents some major challenges for the industry due to recent events. The Ukraine war has led to massive cost increases for raw materials and energy. Besides, perfumeries are facing the rise of e-commerce, but at the same time, the growth of e-commerce opens up new opportunities and distribution channels.