The natural ingredients used to manufacture perfumes mainly include flowers, fruits, roots, and gums along with many others. The major categories of fragrances include eau de toilette, essential oil, parfum, deodorant, etc. The great art of perfumery entails extracting the fragrances of flowers and concentrating them in forms from which they can be transformed into perfumes. These perfumes are eventually sold in little bottles at very high prices.
The global fragrance market has witnessed substantial growth over recent years. The growth is a result of the ongoing innovation in terms of new product launches. Extensive research and development and collaboration by the world’s leading perfume producers drive the fragrance industry. The global fragrance industry has been offering various types of perfumes based on demand and usage. The global fragrance industry was worth USD 37.4 billion in the year 2017 and grew at a compound annual growth rate of 3.7% during 2010-2017. This market is expected to reach a value of USD 70 billion by 2022. The increasing trend of personal grooming along with a growing demand for youth-oriented and luxury fragrances are the major factors driving the fragrance market growth. The increased customer spending on expensive fragrances owing to higher disposable incomes and improving standards of living further boost the worldwide demand for perfumes.
Dynamics of the French fragrance industry
France is renowned for its perfume industry and is home to some of the world’s most famous perfumeries. The country has a long history of producing top-notch fragrance and perfume products. France has been dominating the global fragrance market with the highest fragrance and perfume production. The country is expected to remain the world leader in the global fragrance market, offering great business opportunities to network with the top fragrance companies. As per the trading statistics from ITC, the total fragrance and perfume export value recorded was nearly USD 18 billion in the year 2017. France exported fragrance products worth nearly USD 5 billion in the same year. This value represents more than 26% of the world’s total perfume export in 2017, making France the largest fragrance exporter. The world’s major fragrance consuming markets like the USA, Germany, the UK, Italy, etc are some of the top importers of French fragrances.  The prominence of the perfume industry in France has attracted a significant number of traders and buyers from all over the world to source their products in the country.
Eau de parfum segment of the perfume industry is expected to dominate the French fragrance industry. This market is projected to reach USD 33.5 billion by 2023, at a compound annual growth rate of roughly 6%. The eau de toilette segment is expected to grow at a CAGR of 6% and reach a value of USD 20 billion by the year 2023. Among the consumer group, the female fragrance market is expected to dominate the industry. The women’s fragrance segment is projected to reach USD 37.2 billion by 2023, compared to USD 23.8 billion for the men’s fragrance segment.
Key players for the fragrance sector
The major names in the French perfume industry are Chanel, Christian Dior or Estée Lauder, L’Oreal, etc. These companies dominate the luxury fragrance market in terms of international perfume sales. Chanel is one of the largest perfume brands in the country. In the year 2018, the company’s revenue rose by 13% to reach a total value of USD 11.12 billion. The net profits climbed 16% to USD 2.17 billion. Parfums Christian Dior is the perfumery and cosmetics line of the French fashion house Christian Dior SE. The company reached total sales of USD 7.6 billion in the year 2019. High demand from neighboring countries continues to drive higher sales and profits for big luxury brands.
The perfume industry centers in Paris, where the creators of prestigious perfumes are based. The real heart of the French perfume industry is the small town of Grasse since the 18th century. More than 60 perfume companies are situated in Grasse, employing around 10,000 residents. The town is the historical capital of flowers of the French Riviera. The method of distillation was used to extract pure perfume from the flowers in the hills around Grasse overlooking the Bay of Cannes. The town was able to grow fields of scented flowers including lavender, jasmine, and rose due to its mild climate. Jasmine is one of the most important natural aromas used by the fragrance industry followed by myrtle, rose, and mimosa. It is, therefore, impossible to replace and replicate the French fragrance industry. The country continues to hold the reputation of being the source of exquisite perfumes in the world.