South Korea Fragrances and Perfume Market Report and Forecast 2024-2032

South Korea Fragrances and Perfume Market Outlook

The South Korea market size for fragrances and perfume reached a value of more than USD 456.43 million in 2023. The South Korea fragrances and perfume industry is expected to grow at a CAGR of 6.3% between 2024 and 2032, reaching a value of USD 791.16 million by 2032.

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Key Trends in the South Korea Fragrances and Perfume Market

The word "perfume," which combines the Latin words "per," which means completely or entirely, and "fumar," which means to smoke, was apparently first used about 1593. The fragrance is a chemical mixture that gives each cologne or perfume, as well as those used in other products, its characteristic aroma. Some cosmetic products include "fragrance" as one of their components, although by "fragrance," they mean the mixture of chemicals employed. Since much of this recipe is protected by intellectual property, different products will have different variations. This definition makes a distinction between fragrance and perfume by mentioning a "fluid preparation" and equating the term "perfume" with items like sprays, oils, and roll-on gels.

Brands Collaboration with Celebrities and Social Media Influencers Augments the Reach and Brand Value

Celebrity endorsements and social media influencers have an increasing impact on customers' purchasing decisions, making them one of the most popular ad campaigns among major corporations. Key market players' marketing campaigns are impacted by the growing effect of social media and celebrity endorsement. In order to increase sales of perfumes and scents, cosmetics and perfume businesses are increasingly integrating photos and videos to their websites. To draw customers and expand their reach, businesses are actively choosing and investing in such strategies in addition to technological investments. For an instance, the global megastar BTS and the Korean beauty company VT cosmetics collaborated in 2019 to release a limited-edition fragrance collection with seven different scents.

The Growing Demand for Bespoke and Premium Products in South Korea to Propel the Fragrances and Perfume Market

The worldwide market is significantly impacted by shifting fashion trends, and major producers are concentrating on creating and releasing perfumes that are distinctive and appeal to a variety of customer bases. Additionally, there is expected to be considerable potential for industry expansion due to the rising demand for perfume goods made with natural components across the world. Additionally, it is anticipated that the rising trend toward adopting bespoke scents will accelerate the South Korea fragrances and perfume market's growth. The scent was formerly seen as a luxury, but it has now evolved into a significant component of self-expression. Bespoke products such as suits and shirts have grown in popularity as people seek out their personal style, and personalised fragrances round out the realm of personalisation.

Market Analysis

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Based on product, the South Korea fragrances and perfume market is segmented into parfum or extrait, Eau de Parfum (EDP), and Eau de Toilette (EDT), among others. On the basis of type, the fragrances and perfume market of South Korea is divided into natural and synthetic. Based on consumer group, the fragrances and perfume market is bifurcated into women, men, and unisex. On the basis of distribution channel, the South Korea fragrances and perfume market is classified into Supermarkets and Hypermarkets, Convenience Store, and online, among others.

The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the following key players in the South Korea fragrances and perfume market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans. 

• ELCA Korea Co., Ltd.

• PUIG, S.L.

• Gianni Versace S.r.l.

• Burberry Limited

• CHANEL

• The Estée Lauder Companies Inc.

• Christian Dior SE

• Tom Ford International Llc

• Bulgari S.p.A.

• Others

Market Share by Product

The finest grade and scent concentration on the market are found in Extrait de Parfum and Essence de Parfum. The strong and most long-lasting fragrances have a concentration of at least 20%,  making them exceptionally potent. Eau de Parfum is marketed as being less intense than Extrait de parfum. The top notes of the scent and how the fragrance smells right away after application are the main focal points of Eau de Toilette. After application, they immediately provide a wonderful sensory experience for our olfactory senses, but they are short-lived and their intensity fades soon. Eau de Toilette is a less expensive version of the same perfume Eau de Parfum or Extrait de Parfum with a scent concentration of up to 10%. With the increasing disposable income and high living standards using perfumes and fragrances has become an important part of daily routine in South Korea.

Market Share by Type

Today, up to 70% of the juice in most fragrances is made of synthetic ingredients. While essential oils that have been distilled or expressed are frequently used in perfumes, the majority of the ingredients are compounds that have been extracted from either natural or synthetic sources. Consumers increasingly want synthetic-free perfumes from perfumers, just as they demand all-natural skin care products. Also, as per some studies, the chemicals in plant-derived oils such as tea tree and lavender oil interfere with the functioning of hormones  if used for a prolonged period of time, which offers more opportunities for the synthetic segment to grow during the projected timeframe.

Market Share by Consumer Group

Fragrances and perfumes have improved people's grooming practices and have evolved into indispensable items for daily living. The use of perfumes is advantageous for those who work in the fashion industry, in offices, and in everyday life, since they increase self-assurance, mask offensive body odours, and showcase an individual's individuality. Personal hygiene, enhancing self-confidence, aromatherapy and many other benefits are also supported by fragrances and perfumes. These factors influence all the consumer groups, thereby bolstering the fragrances and perfume industry of South Korea.

Market Share by Distribution Channel

The market is rebounding as a consequence of the restart of manufacturing, commerce, and sales after the COVID-19 pandemic. Product improvements based on consumer demands are predicted to generate considerable growth. Additionally, manufacturers' diversification of their product lines is anticipated to increase their consumer base. Due to the availability of a large selection of alternatives and the capability of scanning product specifications before every purchase, consumers prefer offline channels to make their product purchases. Sales from specialised stores that sell expensive fragrances and perfumes help the offline retail segment grow. However, after the pandemic consumers have started shifting to e-commerce platforms and it is expected to surge more during the projection period.

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Competitive Landscape

Gianni Versace S.r.l.- Gianni Versace S.r.l. was established in Milan, Paris in 1978, and is one of the top worldwide fashion design businesses and a representation of Italian luxury all over the world. It creates, produces, distributes, and sells a range of perfumes, haute couture, eyewear, prèt-à-porter, accessories, jewellery, watches, home furnishings, and other fashion and lifestyle goods, all of which include the iconic Medusa emblem.

Christian Dior SE- The luxury goods producer, distributor, and retailer Christian Dior SE (Christian Dior) operates in several sectors. The business creates and markets wine and spirits, cosmetics and fragrances, jewellery and watches, apparel, and leather products. Christian Dior established the business in 1946 and is based in Paris, France.

Key Highlights of the Report