industry

Fragrances segment grows at 12% in Jan-Sept, nearly double the expansion in personal care, as demand jumps and cos hike reach: Report


Consumers may be cutting back spending on most daily essentials, but here’s one segment that smells of remarkable resilience.

The likes of Godrej Consumer Products, Emami, ITC and Shoppers Stop have reported robust sales of fragrance products for the first half of this financial year, and, according to market researcher NielsenIQ, growth rate in the segment was nearly double that of overall personal care products this year.

The fragrance segment grew 12% year-on-year this calendar year till September, according to the latest NielsenIQ data shared exclusively with ET, driven by roll-on deodorants, which recorded a 26% increase. The personal care segment saw a 6.2% growth, while the overall FMCG industry expanded by 5.7%, according to the researcher.

Fragrances segment

The fragrance industry in India is valued at `4,771 crore, it said. A rapid expansion in distribution and increased interest in personal grooming led to the surge in sales of roll-on deodorants, said Roosevelt Dsouza, head of commercial, India, at NielsenIQ.


Chief executives of Godrej Consumer and Shoppers Stop said in their latest analyst calls that the fragrance category grew at a rapid pace – a “doubledigit” volume growth for Godrej, while Shoppers Stop reported a 17% increase in fragrance sales, its highest quarterly turnover yet in July-September. This is amid an overall subdued demand scenario and significantly higher than the 10% sales growth of beauty products. Godrej Consumer Products managing director Sudhir Sitapati said deodorants are doing very well in organised trade.Sitapati said the company has expanded distribution in rural areas. Emami has launched a portfolio of fragrance products, expanding from deodorants to eau de toilette perfumes for urban consumers, and will sell them initially in ecommerce, said its vice-chairman Mohan Goenka.

Readers Also Like:  SRL Diagnostics rebrands as Agilus Diagnostics

The fragrance segment was the last to recover from the pandemic, when consumers started shopping for new apparel and beauty products in 2022 as people started going to office and on vacations. Market watchers said this robust growth in the category this year is due to the hitherto low penetration rates.

“Fragrance still has some gas left in the tanks since it has always been underdeveloped,” said Santosh Desai, a social commentator and brand expert.

“It is a late bloomer, catching up with the rest of the beauty portfolio, whose sales have gone up in the last couple of years. There is a lot of headroom for growth, as it is showing now. Otherwise, there has been no real category innovation nor any entry of a big player that could suggest this high growth rate.”

Reliance Retail, which opened its flagship luxury beauty store Tira at Mumbai’s Jio World Plaza this week, has set up a ‘scent room’ which will sell the finest international fragrances and limited-edition collections.

Nominations for ET MSME Awards are now open. The last day to apply is November 30, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.



READ SOURCE

This website uses cookies. By continuing to use this site, you accept our use of cookies.