Most Popular in:
Fragrance Segment in Italy Plagued by Recession
Posted: August 2, 2013
From Canadean’s report “The Future of the Fragrance Market in Italy to 2017”, published in July 2013, the market research has found growth rates for the Italian fragrance sector are not to exceed 2% until 2017 thanks to reduced consumer spending power.
Italy has been in recession since mid-2011, and the country’s gross domestic product has fallen sharply since 2007. These factors have impacted consumer spending on both essential and non-essential products, such as fragrances. The fragrances sector in Italy is forecast to grow by a volume CAGR of just 1.4% during 2012–2017, while value growth is forecast to be even lower, at just 0.8%.
Although it is the largest category with over 60% of the sector, female fragrances is projected to show the slowest growth in Italy. The category will just meet average growth with a value CAGR at 0.7% and a volume CAGR of 1.4%. Male fragrances are expected to perform slightly better in both value and volume terms, with CAGRs of 0.9% and 1.5%, respectively. The category commanded just above a 38% share in both volume and value terms in 2012.
Meanwhile, unisex fragrances will be the best performing category, although possessing a much lower market share, with 1.5% for both value and volume in 2012. Growth in this category is projected to be just slightly above sector levels, with value and volume CAGR at 1.1% and 1.6%, respectively, according to Canadean.