The German fragrance category has seen sharp positive growth since 2022, in part due to inflation and soaring prices. As inflation begins to stabilise, and consumers seek affordable options, the pace of value growth is expected to slow to a more sedate pace.
A threat to the category is the new allergen legislation, which could hamper innovation as resources are redirected to comply with the changes. Additionally, fragrance dupes have gained popularity among consumers, who may opt for these alternatives to circumvent rising prices. Given that consumers see fragrances as part of their identity, they will likely trade down rather than drop out of the category completely.
The most important purchase factor (other than price) for fragrances is long-lasting claims, but only 18% of launches led with the claim in 2024. This shows that there is still room to innovate in this space.
There are opportunities to lead with skin- and health-friendly claims, such as allergen-and alcohol-free, as most Germans are keen on such offerings. Since 79% of users think fragrances can improve mental wellbeing, functional fragrances, such as those helping with stress, sleep and wellness, are also appealing.
This report looks at the following areas:
- Usage of fragrances, by format type and generation
- Motivations behind fragrance usage, with self-expression and appealing to others emerging as important factors
- Amount typically spent and factors that influence fragrance purchases, with enduring and intense scents seen as most relevant
- Interest in and willingness to pay for select features, with skin- and health-friendly, functional and customisable options showing potential
- Behaviours related to fragrances, with the link between scents and mental wellbeing, and the appeal of refills and dupes standing out
The category has significant growth potential but must avoid the threat of dupes. Lead with long-lasting and skin-friendly claims to boost interest.
Mihaela Suhalitca, Research Analyst – Beauty and Personal Care
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EXECUTIVE SUMMARY
- The five-year outlook for fragrances
- Market context
- Low financial confidence paired with high prices will impact the category medium-term…
- …but fragrances remain important modes of self-expression
- Brands are under pressure from several fronts, but AI solutions can offer a reprieve
- Mintel predicts
- Market size and forecast
- The fragrance market is on the path to continuous growth
- Sales growth of 26% is expected by 2029
- Opportunities
- Long-lasting and intense scents are primary purchase motivators…
- …offering various opportunities to enhance fragrance performance
- Graph 1: launches in fragrances with long-lasting claims, 2019-24
- Address the need for skin-caring ingredients in perfumes
- Support Germans’ holistic approach to beauty and wellness…
- …by tapping into functional fragrances
- Look into alternative uses of scent profiles
- Offset the threat of dupes
- The competitive landscape
- Prestige brands dominate the German fragrance category…
- Graph 2: company shares of fragrances, by value, 2024
- …leaving little room for budget offerings
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MARKET DRIVERS
- The German economy
- 2024 remains challenging
- Graph 3: key economic data, in real terms, 2019-25
- The inflation rate is bouncing back to more conventional levels
- Inflation is still the key factor affecting consumers’ finances…
- …confidence and expenditure
- Graph 4: financial confidence index, 2022-24
- Low financial confidence will continue to impact the fragrance category short-term
- Graph 5: consumer perception of the German cost-of-living crisis, 2024
- Rising consumer prices put pressure on strained budgets
- Graph 6: consumer price index rates, 2021-24
- Social and environmental factors
- Population changes will negatively impact the category
- Adjust ethical claims amid increased scrutiny
- Rising temperatures will boost fragrance usage
- AI solutions can aid in ingredient sourcing
- Legal factors
- EU legislation puts pressure on fragrance NPD
- Dupe allegations land dm in hot water
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WHAT CONSUMERS WANT AND WHY
- Types of fragrances used
- Perfumes and variations like eau de parfum and toilette are by far the most used among Germans
- Graph 7: fragrance products used, by product type, 2024
- Owning more products sparks greater spending in the category
- Graph 8: repertoire of fragrance products used, by age group, 2024
- Despite widespread usage, Germans fall behind other European countries
- Graph 9: % of consumers who do not use fragrance products, 2024
- Target German men with body spray formats
- Position niche formats for younger city dwellers
- Launches of unisex fragrances are soaring but usage is lagging behind
- Graph 10: use of gendered perfume/cologne/aftershave, 2024
- Graph 11: launches in fragrances, by sub-category, 2019-24
- Boost the usage of unisex fragrances
- Motivations behind fragrance use
- A majority of fragrance users look to express themselves through scents
- Graph 12: motivations for using fragrance products, 2024
- Germans are most likely to use fragrances to influence how they are percieved by others
- Graph 13: select motivations for using fragrance products, 2024
- Do not overlook older generations
- Allow Baby Boomers to express themselves through long-lasting scents that highlight their heritage
- Inspiration: BTSO
- Gain from the positive association with mood-lifting qualities
- Target singles with products that boost their confidence
- Offer multipurpose formats for men who look to mask odours
- Embrace laundry and apparel scent collaborations
- Amount typically spent on a fragrance product
- Despite the dominance of prestige launches, consumer spend is moderate
- Graph 14: launches in fragrances, by beauty price positioning, 2019-24
- Graph 15: amount typically spent on a fragrance product, 2024
- Mass and budget brands can better align with consumer demand
- Encourage treat purchases, including among consumers who are struggling
- Purchase factors beyond price
- Consumers covet enduring and intense scents
- Develop formulations that enhance scent longevity
- Graph 16: relevant factors when choosing a fragrance, 2024
- Appeal to daily users with long wear claims
- Graph 17: launches in fragrances with long-lasting claims, 2019-24
- Graph 18: frequency of fragrance usage, by gender, 2024*
- To increase wear time, encourage the adoption of fragrance primers…
- …or look into encapsulation technology
- Climate change will put pressure on brands to innovate in products that last
- Foster product experimentation through discovery sets…
- Graph 19: brand loyalty in fragrances*, 2023
- …and cost-effective sampling
- Engage younger demographics through interactive packaging
- Interest in and willingness to pay more for select fragrance features
- Stand out with skin and health claims in an overcrowded market
- Graph 20: interest in and willingness to pay for fragrances with select skin and health features, 2024
- Meet the demand for products with skin benefits
- Address irritation concerns…
- …innovate in alcohol-free formulations
- Support Germans’ holistic approach to beauty and health
- Adopt stress-relief formulations…
- …and link them with improved sleep
- Inspiration: perfumes for bedtime on fragrancetok
- Travel stress-relief therapy: partner with retreats and spas to offer luxury sensory experiences
- Help consumers de-stress with scent and fidgeting synergies
- Allow greater flexibility in fragrance usage through personalisation features
- Graph 21: interest in and willingness to pay for fragrances with personalisation features, 2024
- Customised scents and packaging appeal…
- …but reformulation is not always necessary
- Graph 22: % of fragrance users who are interested in select product features, by interest in customised products, 2024
- Inspiration: wedding scentscaping can be extended to other events…
- …and the home
- Curate distinct am and pm scents
- Combine local authenticity with strategic celebrity partnerships to stand out in the German fragrance market
- Graph 23: interest in and willingness to pay for fragrances with select features, 2024
- Highlight local heritage and traditions
- Create hype around celebrity launches on social media
- Enter strategic partnerships to upcycle locally
- Graph 24: launches in fragrances, by upcycled claims, 2019-24
- Behaviours related to fragrance products
- Germans value fragrances as a way to express their identity
- Graph 25: behaviours around fragrances, 2024
- Lead with neuroscience claims in the German market
- Graph 26: % of fragrance users who think fragrances can improve mental wellbeing, by country, 2024
- More than just a fragrance
- Refills are appealing while high prices and dupes heat up competition in the category
- Graph 27: fragrance interest and purchase behaviours, 2024
- Consider refill prices to maintain positive brand perceptions
- Build scent wardrobes by using fragrance finders
- Help users visualise how a fragrance smells
- Inspiration: eye-catching visuals to guide purchases
- Counteract the threat of dupes…
- Graph 28: puchase of product dupes, by generation, 2024
- …by fostering trusting relationships
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LAUNCH ACTIVITY AND INNOVATION
- Puig, Estée Lauder and Inditex have upped launches in 2024
- Graph 29: launches in fragrances, by top 10 ultimate companies, 2023-24
- Heritage and niche brands are pushing the price boundaries in the category…
- …but private-label launches offer a reprieve for cash-strapped users
- The market welcomes new entrants…
- …and heritage reimagined
- Celebrity launches have mass appeal
- New product launches dwindle while eco considerations push repackaging
- Graph 30: launches in fragrances, by launch type, 2019-24
- Unisex fragrances dominate launches despite low usage
- Graph 31: launches in fragrances, by sub-category, 2019-24
- Sustainability claims are becoming more mainstream in the category
- Graph 32: launches in fragrances, by top five ethical/environmental claims, 2019-24
- Refill claims have skyrocketed in recent years
- Graph 33: launches in fragrances with refill or refillable claims, 2019-24
- The buzz around elixirs has not yet reached its peak
- Graph 34: % of fragrance launches marketed as elixirs*, 2019-24
- Alcohol-free launches are scarce but coveted
- Mood-boosting fragrances continue to be launched…
- …but a countermovement explores difficult emotions
- Gourmand fragrances are finding inspiration in unique scents
- Perfumes for the little ones underline evolving consumer usage
- Advertising and marketing activity
- Inspiration: cross-category expansions bring fragrances into daily lives
- Inspiration from #booktok: make fragrance discovery easier
- ART BRÜT collaborated with AI artist BASD-ART on a multisensorial installation
- Düsseldorf Königsallee: pop-up brand activations create a direct connection with consumers
- Hugo Boss plays with Fortnite
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MARKET SIZE and SEgmentation
- The German fragrance market reached 2 billion in sales value in 2023
- Sales of both men’s and women’s fragrances have outperformed in the past two years
- Women’s fragrances remains the largest segment, despite an increase in unisex launches
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Market Forecast
- The category has seen two years of recovery and is expected to stabilise to medium growth in the short term
- Mintel expects market growth of 4% in 2024, amid rising prices and low consumer financial confidence
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MARKET SHARE
- Market shares remained relatively stable as all major players struggled to gain a stronger foothold
- Prestige brands make up the bulk of sales in Germany
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APPENDIX
- Appendix – products covered, abbreviations, consumer research methodology and language usage
- Products covered in this Report
- Abbreviations
- Generations
- Beauty price positioning price ranges
- Consumer research methodology
- A note on language
- Appendix – market size and central forecast methodology
- Forecast methodology
- Forecast methodology – fan chart
- Market size – value
- Market forecast and prediction intervals – value
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