Australian fragrances market to experience shrinking growth rate in five years: Report

The growth rate of fragrances market in Australia is expected to significantly shrink in the next five years, finds a new survey by UK-based research firm Canadean – Health & Beauty.

According to the report ‘The Fragrances Market in Australia, to 2016’, the compound annual growth rate (CAGR) of the overall market is forecasted to record 4.62% for the period 2011-16, against 11.56% that it posted during 2006-11.

The slowdown is anticipated to impact the market value of the Australian fragrances market, which is likely to grow about 25% in 2016 over 2011 levels, against 73% of growth that it posted in 2011 over the market value in 2006.

However, the scenario in volume terms is fairly better than the value, with market volume in 2016 expected to be 20% higher than 2011, compared to 21% during 2011 over 2006 levels.

The growth rate too was moderately similar during both review and forecast periods, at 3.81% and 3.72% respectively, survey revealed.

According to Canadean, Australian women are increasingly passionate towards fragrances, accounting for a major share in the market and growing at a gradual pace.

Female fragrances held a leading share of close to 65% in 2006, which grew further to about 67% in 2011. Canadean expects the momentum to continue in future and reach about 68.5% by 2016.

On the contrary, male fragrances lost its share to female fragrances by marginally declining during 2006-16 – from 33.6% in 2006 to 32% in 2011, and is forecasted to drop further to 30% in 2016.

A similar trend was observed in volume terms, where female fragrances continued to steadily grow and lead the market with a whopping share of more than 74% and male fragrances lost the growing rhythm slightly, from the review to forecast periods.

Click here for more details of the report.