Fragrance Sector Expands at 12% in Jan-Sept, Nearly Twice the Growth of Personal Care,
The fragrance industry appears to be flourishing and showing strong demand.
Companies like Godrej Consumer Products, Emami, ITC, and Shoppers Stop have reported strong sales in the fragrance category during the first half of this fiscal year. According to NielsenIQ, the growth rate in this segment has been nearly double that of the overall personal care category.
The Indian fragrance market saw a 12% year-on-year growth from January to September 2024, as per NielsenIQ’s latest data shared exclusively with ET. Roll-on deodorants were a key driver, with a remarkable 26% growth. In contrast, the personal care sector grew by 6.2%, while the overall FMCG industry expanded by 5.7%.
A Market That Smells of Success
The Indian fragrance market, valued at ₹4,771 crore, has been buoyed by several factors. Key players like Hindustan Unilever (HUL), ITC, Nivea, Vini Cosmetics, Godrej Consumer Products, and Emami have tapped into both premium and mass-market opportunities.
According to NielsenIQ, increased urbanization, the influence of social media, the growing popularity of quick commerce, and a younger demographic have fueled the demand for fragrance products. Additionally, homegrown brands like Fogg, Engage, He, Denver, and Wild Stone are giving multinational companies tough competition.
Godrej Consumer Products reported double-digit volume growth in the fragrance category, while Shoppers Stop achieved a 17% rise in fragrance sales during the July-September quarter—their highest-ever turnover for this segment. This growth significantly outpaced the 10% sales rise for beauty products during the same period.
Roosevelt Dsouza, head of commercial, India, at NielsenIQ, noted a significant surge in roll-on deodorant sales, while Sudhir Sitapati, managing director of Godrej Consumer Products, emphasised the strong performance of deodorants in organised retail.
Low Penetration Presents High Potential
Despite its growth, the fragrance sector remains under-penetrated, offering ample room for further expansion.
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