Germany Perfume Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Germany Perfume Market Growth Trends & Drivers

Surge in Influencer-Driven Brand Recommendations Is Key Market Trend

• Nowadays, influencer marketing is one of the most-popular modes of advertisement due to the rising number of social media users. This approach provides a greater connection with the audience and also improves brand awareness, which was not present in traditional advertisements.
• In Europe, 37.8% of the population uses Instagram, with 252.1 million registered users, of whom 10.5 million are considered influencers, which makes it suitable for influencer advertising.
• Germany is regarded as the second-largest investor in Europe for digital marketing, having spent USD 14.96 billion in this area in 2023, demonstrating the potential of influencer marketing there.

High Disposable Income is a Key Driver

• Germany is performing well in many aspects of well-being compared to other countries in Better Life Index, as it outperforms them in terms of average in jobs, education, work-life balance and life satisfaction.
• The average disposable income is 38,971 USD/year more than the average Organization for Economic Cooperation and Development (OECD) of 30,490 USD/year, which gives them privilege to spend more on high living standards such as, luxury perfumes, clothing and many others.
• The high employment rate of 77% of total population of the country in which 80% are men and 73% of women are employed, the rising need of perfume for these professionals makes this country a perfect market for perfume selling brands.

Germany Perfume Market Analysis

Distribution Channel Insights

• Supermarkets/hypermarkets are the largest category, with a market share of 40% by 2024. The reason for this category's supremacy is that these places offer a wide range of options, as well as the opportunity to test perfumes and high-end products.
• The increasing number of retail stores and hypermarkets in the country is also driving the growth of the market.
• The online category is predicted to become the fastest-growing category with a CAGR of 6.4% by 2030. The shifting inclination of consumers toward e-commerce sites and online stores is responsible for this.
• Compared to other sales channels, online platforms allow brands to reach a wider audience, provide consumers with greater deals, and require less time from consumers.

The distribution channels covered in the report include:

• Grocery Stores
• Supermarkets/Hypermarkets (Largest Category)
• Multi-Brand Retail
• Online (Fastest-Growing Category)
• Direct
• Others

Type Insights

• The Western category is the largest with a share of around 50% in 2024. This is because they are the oldest types of fragrances available in the country.
• They can be used more frequently because they are a light and pleasant substitute for strong fragrances.
• Oriental is the fastest-growing category, with a CAGR of 6.0% by 2030. This is because of the high concentration of essential oils in them and their long-lasting fragrance.
• Their scent is imparted by natural ingredients, such as sandalwood, exotic flowers, musk, and amber.

Some of the types we have come across are:

• Western (Largest Category)
• Oriental (Fastest-Growing Category)
• Concentrated Oil (Attar)

Preference Insights

• The female category holds the largest share of the market, in 2024. This is because of the inclination of women toward cosmetics and the dominance of the women population in the area.
• In January 2024, the estimated population of Germany was 83 million, of which 41,126,615 were males and 42,735,610 were females.

The preferences covered in this report are:

• Male
• Female (Largest Category)
• Unisex (Fastest-Growing Category)

Price Range Insights

• The premium category will hold the largest market share, in 2024. The dominance of the category is because of the quality of these perfumes and the consumer preference to invest a little more for better products.
• These fragrances are often handcrafted and can also be customized according to the preference.
• The mass category is expected to become the fastest-growing, by 2030. The growth is due to the large availability and need for daily-use perfumes.

The price range in this report are:

• Mass (USD 50–150) (Fastest-Growing Category)
• Premium (USD 151–300) (Largest Category)
• Luxury (>USD 300)

Age Group Insights

• The age group of 21−40 will hold the largest market share, of 55%, in 2024 and witness the highest CAGR, by 2030. The majority of the working professionals and the general public fall of Germany in this category, which supports its dynamic expansion.
• Approximately 11 million individuals in Germany are under the age of 15; 17 million are over 65, and the rest 55 million fall in this age group.

The age groups analyzed in this report:

• Below 20 years
• 21–40 years (Largest and Fastest-Growing Category)
• 41–60 years
• Above 60 years

Purchase Type Insights

• Self or personal use is the largest and fastest-growing category. This is because most customers in Germany prefer luxury perfumes according to their preferences.
• The growing number of people purchasing fragrances for themselves is also due to the prevalent practice of customizing perfumes in Germany.

The purchase type analyzed for this report are:

• Self (Largest and Fastest-Growing Category)
• Family
• Gifting

Usage Type Analysis

• The daily usage category is the largest, in 2024. The dynamic growth is because more than just a basic cosmetic, perfume is a tool for confidence building, self-expression, and personal development. People can improve their mood, gain confidence, and make an impression on everyone they meet by selecting the perfect fragrance.
• The population's inclination to work out and engage in physical activity is another factor propelling this category.

The usage types analyzed for this report are:

• Daily (Largest and Fastest-Growing Category)
• Weekly
• Occasionally

Regional Analysis

• Geographically, North Rhine–Westphalia will hold the largest, of 30%, in 2024 and witness the fastest-growing revenue, with a CAGR of 6.7%. This growth in this state is due to its dense population.
• According to a report, North Rhine–Westphalia is the most populous region in the country with 17.9 million people, and it is also its largest industrial area.
• Additionally, the state is home to Cologne where the original Eau de Cologne was invented. Cologne is also a major tourist center due to its UNESCO-listed Gothic cathedral.

The states analyzed in this report include:

• Baden–Wurttemberg
• Bavaria (Bayern)
• Berlin
• Brandenburg
• Bremen
• Hamburg
• Hesse (Hessen)
• Lower Saxony (Niedersachsen)
• Mecklenburg–Vorpommern
• North Rhine–Westphalia (Nordrhein–Westfalen) (Largest and Fastest-Growing State)
• Rhineland–Palatinate (Rheinland–Pfalz)
• Saarland
• Saxony (Sachsen)
• Saxony–Anhalt (Sachsen-Anhalt)
• Schleswig–Holstein
• Thuringia (Thueringen)

Germany Perfume Market Share

The German perfume market is considered highly fragmented because of the presence of both international and domestic players. The complexity of the market is one of the main reasons behind the fragmentation because of the evolving technology and innovative ideas, which is increasing competition.

Germany Perfume Market News

• In May 2024, Coty Inc. announced its long-term license agreement with Lena Gercke and came up with LeGer’s debut fragrance.
• In April 2023, Estee Launder added a new fragrance to its beautiful collection, called Beautiful Magnolia L’eau.
• In November 2022, Estee Launder acquired Tom Ford International for USD 2.8 billion.