Resilient growth in India’s fragrance market with 12% YoY growth

India’s fragrance market has shown remarkable resilience, with a 12% year-on-year growth, even as overall consumer spending on essentials slows. Leading companies like Godrej, Emami, and Shoppers Stop have reported strong fragrance sales, driven by deodorants.

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India’s fragrance market has shown impressive resilience, outperforming other categories despite a larger slowdown in consumer spending on daily essentials. Companies like Godrej Consumer Products, Emami, ITC, and Shoppers Stop reported imperssive growth in fragrance sales during the first half of this fiscal year. Data from NielsenIQ highlights that the growth rate for fragrances was nearly twice that of the overall personal care segment, showing the category’s strong performance in challenging market conditions.

NielsenIQ data shared with ET shows that the fragrance segment recorded a 12% year-on-year growth till September, with roll-on deodorants driving this increase by achieving a 26% surge. By comparison, the personal care sector grew by 6.2%, while the overall FMCG market expanded by 5.7%. The fragrance market, valued at ₹4,771 crore, has benefited from an expanded distribution network and rising interest in personal grooming, according to Roosevelt Dsouza, NielsenIQ’s head of commercial, India.

Consumer spending on personal care and wellness has grown significantly in recent years, fueled by heightened health awareness, improved access to quality products, the influence of social media, and the use of self-care routines for stress management. A report by Redseer Strategy Consultants and Peak XV estimates that per capita spending on beauty and personal care in India currently stands at US$ 14. Increased awareness for self-care has further encouraged consumers to invest in products that enhance their overall well-being.

E-commerce has played an important role in reshaping the retail sector, providing consumers with easier access to a variety of products, including fragrances. Online platforms have allowed global fragrance brands to connect with a larger audience, especially young customers who favor digital channels. This trend has enabled brands to expand their reach while overcoming traditional retail limitations.

Godrej reported “double-digit” volume growth, while Shoppers Stop recorded a 17% increase in fragrance sales, achieving its highest-ever quarterly turnover for July-September. This fragrance sales growth surpasses the overall weak demand of beauty category which is 10%. Godrej Consumer Products’ Managing Director, Sudhir Sitapati, attributed this success to the strong performance of deodorants in organised trade and the company’s expanded rural distribution efforts.

Mohan Goenka, Emami’s vice-chairman, shared that the company has launched a fragrance portfolio, ranging from deodorants to eau de toilette perfumes, targeting urban consumers via e-commerce. Fragrances, one of the last categories to rebound after the pandemic, have seen renewed growth as consumer spending on beauty and apparel increased with the reopening of offices and resumption of travel in 2022. Experts suggest that low market penetration has also contributed to the significant growth potential in this category.

Statista forecasts India’s fragrance market to generate US$ 316.90 million in revenue by 2024, with steady annual growth of 1.49%, reaching an estimated US$ 338.20 million by 2028.

Social commentator and brand expert Santosh Desai noted, “Fragrance still has some gas left in the tanks since it has always been underdeveloped.” He explained that the category is catching up with other beauty segments, which have grown faster in recent years, and sees substantial room for future expansion. Tapping into this opportunity, Reliance Retail recently launched its luxury beauty store, Tira, in Mumbai, featuring a unique ‘scent room’ dedicated to high-end and limited-edition fragrances, offering a curated experience for fragrance enthusiasts.