Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Fragrances market continues to struggle
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- Figure 1: Total US sales and fan chart forecast of fragrances, at current prices, 2011-21
- Confusion over ancillary products challenges fragrance brands
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- Figure 2: Ancillary product usage – Any use (net)^, June 2016
- Splurge versus save mentality challenges sales
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- Figure 3: Retailers shopped, June 2016
- Product launch claims fail to align with consumer interests
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- Figure 4: Share of fragrance product launches, by claim category, 2012-16*
- The opportunities
- Think outside of the box with retailing
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- Figure 5: Attitudes toward fragrances – Shopping frustrations, June 2016
- Safe ingredients appeal to consumers
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- Figure 6: Trial and interest in fragrance ingredient innovations – Any use or interest (net)^, June 2016
- Product innovations combat cost-savings mentality
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- Figure 7: Trial and interest in fragrance innovations, June 2016
- What it means
The Market – What You Need to Know
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- Fragrances market continues to struggle
- Most sales fall under women’s segment, men’s fragrances perform better
- Scented personal care items challenge fragrances
- Multicultural population benefits market while aging population slows growth
Market Size and Forecast
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- Fragrances market continues to struggle
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- Figure 8: Total US sales and fan chart forecast of fragrances, at current prices, 2011-21
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- Figure 9: Total US sales and forecast of fragrances, at current prices, 2011-21
Market Breakdown
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- Most sales fall under women’s segment, men’s segment more stable
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- Figure 10: Share of US retail sales of fragrances, by segment, 2016
- Figure 11: Total US retail sales of fragrances, by segment, 2010-16 (est)
- Women’s fragrances dominate new launch activity, unisex offerings on the rise
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- Figure 12: Share of fragrance product launches, by subcategory, 2011-16*
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- Figure 13: Recent unisex fragrance launches
- Fragrance sales struggle across all retail channels
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- Figure 14: Total us retail sales of fragrances, by channel, 2014 and 2016
Market Perspective
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- Adults spend their beauty and personal care budgets elsewhere
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- Figure 15: Percent change of US retail sales of beauty and personal care products, by segment, at current prices, 2016*
- Fragrances challenged by scented personal care, body sprays
- Adults confuse ancillary products with scented personal care
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- Figure 16: Ancillary product usage – Any use (net)^, June 2016
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- Figure 17: Ancillary product benefits, June 2016
- Opportunities for more natural, convenience claims
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- Figure 18: Share of fragrance product launches, by claim category, 2012-16*
Market Factors
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- Aging population challenges fragrance sales
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- Figure 19: Population by age, 2011-21
- Increasing multicultural population presents opportunities
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- Figure 20: Population by race and Hispanic origin, percent change, 2016-21
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- Figure 21: Fragrance expenditures, by race/Hispanic origin, February 2015-March 2016
Key Initiatives – What You Need to Know
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- Men rely on mass brands, women turn to Victoria’s Secret, Bath & Body Works
- Customized fragrances, natural claims reach consumers
- Celebrity endorsements fail to engage consumers long-term
- Added benefits, improved retailing change how consumers shop the category
Brand Usage of Fragrances
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- Men rely on mass brands over fine fragrances
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- Figure 22: Brands of aftershave or cologne used in the last 12 months, January 2011-March 2016
- Victoria’s Secret, Bath & Body Works engage women with new product launches
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- Figure 23: Brands of perfume, cologne, or toilet water used in the last 12 months, January 2011-March 2016
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- Figure 24: Top 10 fragrance companies in new product launch activity, by share, 2010-16*
What’s In?
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- Layering kits and fragrance oils prove that customization is still king
- Interest in natural claims is growing
- Unique marketing strategies stand out against a sea of celeb endorsements
What’s Out?
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- Celebrity endorsements continue to struggle despite steady stream of launches
- Splurge versus save mentality, expectation of low prices slow overall market growth
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- Figure 25: Email campaign performance of select special promotion fragrance campaigns, 2016
What’s Next?
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- Unique scents inspire consumers
- Added benefits encourage additional usage occasions
- Retailers increase trial beyond magazine samples and scent testing stations
The Consumer – What You Need to Know
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- Occasional users slow market growth
- Shoppers influenced by convenience, low price points when choosing a retailer
- Subtle scents pique consumer interest
- Mixed attitudes highlight personal nature of scent preferences
- Ingredient claims, customizable scents are in demand
Fragrance Usage
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- Despite high market penetration, sales growth slowed by occasional users
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- Figure 26: Fragrance usage – Any usage and regular usage, June 2016
- Higher engagement among younger adults
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- Figure 27: Fragrance usage – Any use, by age, June 2016
- Hispanic, Black adults more engaged with fragrances
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- Figure 28: Any fragrance usage (net) - Any and regular usage, by race/Hispanic origin, June 2016
Retailers Shopped
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- Fragrance purchases made at a variety of retailers
- Low price points, convenience drive purchase locations
- Online retailers are reaching shoppers, but face challenges
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- Figure 29: Retailers shopped, June 2016
- Younger adults shop lower-priced retailers, older adults prefer department stores
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- Figure 30: Retailers shopped, by age, June 2016
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- Figure 31: Retailers shopped, by race/Hispanic origin, June 2016
Fragrance Characteristics
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- Subtle scents have widespread appeal
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- Figure 32: Fragrance characteristics – Any rank (net)^, June 2016
- Long-lasting claims are top-of-mind
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- Figure 33: Fragrance characteristics, by ranking, June 2016
- Strong claims resonate with men, women seek specific scent profiles
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- Figure 34: Fragrance characteristics – Any rank (net)^, by gender and age, June 2016
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- Figure 35: Fragrance characteristics – Any rank (net)^, by race/Hispanic origin, June 2016
Attitudes toward Fragrances
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- Mixed attitudes highlight personal nature of scent preferences
- Shopping experience leaves room for improvement
- Ingredient concerns relatively low, but present opportunities
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- Figure 36: Attitudes toward fragrances, June 2016
- Younger consumers express dissatisfaction with scents
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- Figure 37: Attitudes toward fragrances, by age, June 2016
- Hispanics seek unique fragrances
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- Figure 38: Attitudes toward fragrances, by race/Hispanic origin, June 2016
Trial and Interest in Product Innovations
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- Ingredient claims, customization appeal to consumers
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- Figure 39: Trial and interest in fragrance innovations – Any use or interest (net)^, June 2016
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- Figure 40: Trial and interest in fragrance innovations, June 2016
- Younger consumers, older women interested in innovations
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- Figure 41: Trial and interest in innovation – Any use or interest (net)^, by 18-34, 35-54, male 55+ and female 55+, June 2016
- Opportunities to reach Hispanics, Black consumers with fragrance innovations
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- Figure 42: Trial and interest in innovation – Any use or interest (net)^, by race/Hispanic origin, June 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – Market
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- Figure 43: Total US retail sales and forecast of fragrances, at inflation-adjusted prices, 2011-21
- Figure 44: Total US retail sales and forecast of fragrances, by segment, at current prices, 2011-21
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