in 2024-2025, the fragrance sector in China stands out as a burgeoning growth driver. In 2024, China’s fragrance market was valued at 20.7 billion RMB ($2.9 billion) and is projected to reach 51.5 billion RMB ($7.2 billion) by 2029, showcasing an impressive 22.5% growth rate, as per data from iiMedia Research.

The Chinese perfume and fragrance market 2024-2025

The Chinese perfume and fragrance market is on track for explosive growth over the next five years, with experts projecting a double-digit compound annual growth rate (CAGR) that vastly outpaces the global average. This forecast comes from a white paper co-authored by Eternal Group, dsm-fir-menich, and Ipsos, which pinpoints a promising surge in market size from 22.9 billion yuan in 2023 to a whopping 44 billion yuan by 2028. This growth trajectory, at a CAGR of 14%, highlights the immense opportunities lying ahead, especially in contrast to the global average of just 3.7%.

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New start 🙂 China’s perfume sector is not just recovering; it’s thriving.

The expected rebound in consumption, coupled with China’s vast population, spells out a golden era for fragrance sales. As Chole Lam, CEO of Eternal Group, emphasized, this kind of growth is unparalleled globally, with forecasts for other major economies like the US and South Korea hovering around 5.5% and 5.8%, respectively.

What’s driving this optimistic outlook? Firstly, the per capita spending on perfumes in China is still significantly lower compared to that in more developed markets, signaling room for substantial growth. The current spend is set to nearly double from 16 yuan per person in 2023 to 31 yuan by 2028. This is still far below the spend in markets like the US and UK, underscoring the untapped potential in the Chinese market. source

Industry insights from Euromonitor International also support this bullish outlook, forecasting that China’s retail fragrance market will grow faster than its global counterparts, from $2.38 billion in 2024 to $3.67 billion in 2028. Zhu Yanrui, a senior research analyst at Euromonitor, noted that China’s market is still in its early stages with lower per capita consumption and smaller overall market size, which means there’s a higher ceiling for growth.

Brands are recognizing these opportunities. The landscape is becoming increasingly competitive with new players entering the market and established brands doubling down on their strategies to tap into Chinese consumer preferences, which include a deeper connection to brand and emotional value.

Looking ahead, the forecasts a shift in how fragrances are perceived—from luxury items to everyday essentials across personal care and household products. This shift is expected to catalyze rapid structural growth in the market.

Fragrance business in China

For entrepreneurs and businesses eyeing the Chinese market, this is more than just numbers 🙂

—it’s a clarion call to innovate and adapt to a dynamically evolving consumer landscape, where understanding and meeting consumer preferences will be key to capturing and sustaining growth.

Recent shifts in consumer preferences highlight a significant change over the last six months. Entry-level domestic fragrances have increased their market share from 18% to 21%, according to a survey by iResearch. This survey, involving 600 participants across mainland China, indicates a decline in the popularity of international niche fragrances, which saw a 4% drop.

Tips to market niche perfum brand in China

Dominating the market are high-end fragrances priced over 500 RMB ($70), which command a 55% market share. This trend illustrates a strong consumer preference for quality. Meanwhile, fragrances priced between 10 RMB to 99 RMB ($1.4-$14) remain a staple in consumer choices, with sales totaling 1.14 million units, underscoring their cost-effectiveness.

The current market landscape reveals a polarization: one segment gravitates towards luxurious international brands, while another prefers affordable domestic options that embody Chinese cultural themes.

Dao Nguyen, founder of Essenzia ByDao and author of the 2024 Sinorama report on Chinese fragrance brands, explains, “This market polarization stems from a mix of increasing consumer savvy and a focus on value. Over the past decade, Chinese consumers have gained considerable exposure to luxury fragrances, with brands like Jo Malone and Diptyque entering the market in 2014, becoming well-informed about high-end and niche collections. Concurrently, the domestic fragrance industry has evolved, offering both high-quality originals and replicas that present great value.”

This dual trend in the market presents diverse opportunities for fragrance brands to target various consumer segments and drive growth.

Ex Gisada in China

In the competitive landscape, major players are intensifying their focus on high-end fragrances. Despite a lower market penetration rate compared to the US and Europe—5% versus 50% and 42%, respectively—Chinese consumers spend significantly more per transaction on fragrances, typically between 500 RMB to 800 RMB.

On major e-commerce platforms, luxury brands like Chanel and Dior are reinforcing their dominance, while niche international brands are finding it challenging to maintain their position. Chanel, YSL, and Hermès’ fragrances receive Tmall 2024 annual fragrance award for being the bestsellers on the platform. Image: Tmall

Global fragrance brands bring extensive creative and olfactory expertise to the table and preserve their allure through sustained value.

However, they could learn from the agility of Chinese brands, particularly in adapting to fast-evolving platforms like Douyin and incorporating strategies like livestreaming, which are essential in today’s market dynamics, explained marcus Zhan GMA

Douyin, main sales ecommerce app in China

The increasing importance of content-driven e-commerce platforms such as Douyin highlights their role as significant growth drivers in the fragrance industry. As mainstream commercial and niche international brands ramp up their e-commerce and livestreaming initiatives, they are poised to capture a larger market share, ensuring a competitive balance within the market.

Douyin better than tmall?

Leveraging Douyin for marketing a niche perfume brand in China presents an innovative and dynamic approach to tapping into a rapidly expanding market. As a startup entrepreneur, harnessing the power of Douyin not only aligns with current digital trends but also offers a direct channel to engage with a tech-savvy, trend-driven audience.

First, understanding Douyin’s ecosystem is crucial—it’s not just a platform for entertainment; it’s a vibrant marketplace where content drives commerce. The strategy should revolve around creating captivating, visually appealing content that resonates with the lifestyle and aspirations of Chinese consumers. Short, engaging videos that tell a story about the brand’s uniqueness, the quality of the fragrances, and the sensory experience can create an emotional connect.

Douyin KOL

Collaboration with influencers, known as Key Opinion Leaders (KOLs), who align with the brand’s values, should be a cornerstone of the strategy. These influencers can provide authenticity and reach, effectively introducing the brand to their extensive followers. They can demonstrate the perfume’s application, share personal testimonials, or create thematic content that showcases the lifestyle associated with the brand.

Interactive and immersive experiences are vital. Utilize Douyin’s features like livestreaming for real-time engagement. Livestreaming sessions can include exclusive launches, behind-the-scenes tours, or live Q&A sessions to educate viewers about the distinct qualities of the perfumes. Offering limited-time discounts or special bundles during these streams can drive immediate sales.

Additionally, leveraging Douyin’s AR filters and stickers to let consumers virtually ‘try’ the perfume could be a game-changer. These interactive elements not only enhance user engagement but also provide a fun way for potential customers to experience the brand from the comfort of their homes.

Finally, always focus on data-driven decisions. Douyin’s analytics tools can provide valuable insights into consumer behavior and preferences, allowing for refined marketing strategies. Monitor engagement rates, watch times, and user feedback to continually optimize and tailor content.

In summary, effectively marketing a niche perfume brand on Douyin requires a blend of creative storytelling, strategic influencer partnerships, interactive experiences, and data-driven strategies. By fully leveraging the capabilities of Douyin, a niche perfume brand can significantly enhance its visibility and appeal in the competitive Chinese fragrance market.

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