Positive growth for Chinese fragrances has been predicted by researcher Canadean, whose new study finds that the Chinese Fragrance sector will grow at a value Compound Annual Growth Rate (CAGR) of 11.1 per cent until 2017.
This is predicted to outperform the overall health and beauty industry in China which is forecast to grow at a CAGR of 7.2 per cent for the same period.
Affluence and influence
The reason given by Canadean for this positive growth is the rising affluence of the Chinese middle class and the increasing influence of western brands and culture, particularly in metropolitan areas such as Guangzhou and Shanghai.
On top of the fragrance sector growing ahead of beauty in general, within the segment, female fragrances are believed to possess the most potential and grow ahead of the sector to 2017.
According to the Canadean study, Female Fragrances accounted for the largest share of the market in 2012, with 83.5 per cent value and 84.3 per cent volume shares, and this stronghold looks to continue over the next five years, as the category is to grow ahead of the sector, at a value CAGR of 11.3 per cent and volume CAGR of 7.2 per cent to 2017.
Categories
Elsewhere, the Male and Unisex Fragrance categories will also display high growth, although from a much smaller share than Female Fragrances.
Male Fragrances will grow at a value and volume CAGR of 10 per cent and 6.6 per cent respectively. Unisex fragrances are to show the lowest growth of the sector, at a value CAGR of 9.9 per cent and volume CAGR of 6.5 per cent between 2012 and 2017.
Following suit
Continuing its fragrance focus at the moment, Canadean also identified India as having enormous growth potential in the fast growing fragrance sector.
According to the India-focus of the report, fragrance is singled out as one of the fastest growing sectors, showing no sign of slowing down, similar to China.
“With a value CAGR of 20.2 per cent, the Fragrance sector is the second fastest growing sector in the Indian Health and Beauty industry towards 2017, with only the Personal Hygiene sector ahead of it,” says Canadean.
The volume of the Fragrance sector is expected to grow at a CAGR of 16.5 per cent for the same period, and female fragrances are also tipped to grow ahead of the Indian fragrances sector to 2017.