ASSOCHAM predicts Indian fragrance market to reach Rs100bn by 2015

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has predicted that the Indian Fragrance Industry, which is growing at a compounded annual growth rate (CAGR) of 40%, is likely to reach Rs100bn($1.81bn) by the year 2015.

According to the study, the fragrance industry in India is currently poised at about Rs37bn($672.9m), consisting of deodorants, perfumes and roll-ons, while the Indian deodarant and roll-on market currently contributes Rs18bn($327.3m), which is growing at the rate of about 55% annually.

The study has reavealed that the perfume market is growing at about 30% and is currently getting revenues of about Rs15bn($272.8m).

Accordintg to the study, the roll on market’s currently contributes Rs4bn($72.7m) as only few brands are operating in this sector.

ASSOCHAM secretary general D Rawat said fragrance industry in India is still at an emerging stage, the growing awareness and preferences in the Indian middle class is fuelling demand.

"Besides, with grooming and personal hygiene fast becoming a part of peoples’ accessory wardrobes, demand for fragrances is likely to spiral upwards significantly," said Rawat.

The ASSOCHAM study has also disclosed that rising demand for fragrances is majorly driven by tier II and III markets, as a result companies are gradually shifting their focus from metros and exploring other markets and gearing to launch a range of affordable deodorants, perfumes and colognes during summers.

According to the study, the the men’s category shares a 60% of the whole fragrance market, which keeps evolving with change in attitudes and lifestyle.

The average teenager in both male and female categories in urban centres tends to spend between Rs5bn($90.9m) and Rs20bn($363.7m) only on fragrance including – deodorants, roll-ons and perfumes.

ASSOCHAM study has also revealed that the aggregate sales of deodorants and perfumes happen between March and September as people spend more to beat sweat, which causes body odour, in a bid to remain fresh.

The study has concluded that coastal cities in India will witness maximum sales of deodorants.