The U.S. fragrance market is experiencing healthy growth after seeing declines associated with the economic recession. Due to estimated growth of 6% in 2012, the industry is expected to reach more than $3.5 billion in sales by the end of the year. Growth is being driven by improved consumer confidence, increased product launches, and strong performance in retail channels outside of FDMx. Positive sales growth is forecast for both the women’s and men’s segments through 2017. In the women’s segment, celebrity and fashion house fragrances continue to remain popular though more unique positioning, such as destination-based fragrances, is paving the way for increased innovation in the category. The men’s segment continues to see growth in FDMx from power players like Axe and Old Spice driven by items like body sprays.

In addition to strong sales growth, responses to Mintel’s exclusive consumer survey indicate that the time is ripe for increased product innovation in the fragrance category. Survey results show strong consumer interest in added product benefits like mood boosting and anti-aging, as well as innovative forms and extending scent into additional product categories. Healthy category growth, combined with increased product innovation makes this an exciting time for the fragrance industry.