Smell the roses: The macroeconomic climate has enabled shoppers to splurge, boosting industry revenue

Over the five years to 2017, the Perfume and Fragrance Manufacturing industry has slowly expanded, as growth in the macroeconomic climate has enabled more shoppers to splurge on industry goods. Industry goods are typically sold at retailers of nonessential items, such as luxury department stores and cosmetics stores. As macroeconomic drivers such as disposable income and consumer confidence have trended upward over the five years to 2017, more consumers have splurged on items sold by these retailers, including perfume. Despite high demand, revenue growth has been hampered by an appreciation of the US dollar relative to the currencies of the country's major trading partners. Over the five years to 2022, industry revenue is forecast to continue increasing....purchase to read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 12-17
0.8%
Forecast Growth 17-22
Profit
Employment
1,288
Businesses
51

Industry Threats & Opportunities

  • Despite high demand, revenue growth has been hampered by an appreciation of the US dollar
  • Demand has been stifled by increased competition from foreign manufacturers
  • The average industry profit margin is anticipated to remain relatively high
  • Industry Report - Industry Locations Chapter

    The Perfume and Fragrance Manufacturing industry is highly concentrated in the West region of the United States, which accounts for 30.5% of industry establishments. California, which holds 24.3% of total industry locations, is attractive to industry operators as the state is home to many upstream suppliers and downstream buyers. Metropolitan hubs like Los Angeles and San Francisco are shopping hot spots, and locating near these urban hubs cuts transportation costs for operators. Furthermore, the region's coastal location makes it a significant trade port; since the industry is highly globalized, the region's access to overseas manufacturers and end markets make it an attraction area for industry establishments...purchase to read more.

    Additional Insights for the Perfume & Fragrance Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Perfume & Fragrance Manufacturing Industry are

  • Production of premium goods/services
  • Having contacts within key markets
  • Having marketing expertise
  • IBISWorld analysts also discuss how external factors such as Per capita disposable income and Consumer Confidence Index in the Perfume & Fragrance Manufacturing industry impact industry performance..

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    What's in this report

    What is the Perfume & Fragrance Manufacturing Industry?

    Companies in this industry manufacture men’s and women’s perfumes and fragrances. Perfume is a mixture of fragrant essential oils and aroma compounds, fixatives and solvents used to give the human body a pleasant scent.

    Industry Products
  • Male fragrances
  • Women's floral fragrances
  • Women's oriental fragrances
  • Women's woody fragrances
  • Women's fresh fragrances
  • Industry Activities
  • Manufacturing eau de parfum
  • Manufacturing eau de toilette
  • Manufacturing perfume extract
  • Manufacturing eau de cologne
  • Manufacturing fragrances for personal care products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita disposable income
  • Consumer Confidence Index
  • Trade-weighted index
  • Demand from beauty, cosmetics and fragrance stores
  • Demand from department stores

  • Current Performance
  • Economic factors
  • Trade
  • Profit and wages
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue drivers
  • International trade
  • New avenues
  • Table: Perfume & Fragrance Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Perfume & Fragrance Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Pharmacies & Drug Stores
  • Beauty, Cosmetics & Fragrance Stores
  • Health Stores
  • Department Stores

  • Key Selling Industries
  • Inorganic Chemical Manufacturing
  • Organic Chemical Manufacturing

  • Products & Services
  • Women's floral fragrances
  • Male fragrances
  • Women's oriental fragrances
  • Women's fresh fragrances
  • Women's woody fragrances
  • Chart: Perfume & Fragrance Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Domestic female fragrances
  • Domestic male fragrances
  • Domestic unisex fragrances
  • Chart: Major Market Segmentation for the Perfume & Fragrance Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchases and marketingWages and depreciationRent, utility and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Perfume & Fragrance Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Perfume & Fragrance Manufacturing Industry

  • Industry Globalization
    Estee Lauder Companies Inc., L'Oreal SA, Coty Inc.,
  • Table: Estee Lauder Companies Inc. - financial performance
  • Table: L'Oreal SA - financial performance
  • Table: Coty Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Perfume & Fragrance Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Perfume & Fragrance Manufacturing Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Per capita disposable income (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Eau De Cologne
  • A type of fragrance that originated in Cologne, Germany. It is typically composed of about 3.0% to 5.0% of aromatic compounds.
  • Eau De Parfum
  • Highly-concentrated fragrance, typically containing 8.0% to 15.0% aromatic compounds.
  • Eau De Toilette
  • A more diluted fragrances, comprised of about 4.0% to 8.0% aromatic compounds.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Perfume & Fragrance Manufacturing is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Perfume & Fragrance Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Perfume & Fragrance Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Perfume & Fragrance Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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