According to new findings from Canadean, the Chinese fragrance sector will grow at a value CAGR (Compound Annual Growth Rate) of 11.1% until 2017. The overall health and beauty industry in China will grow at a CAGR of 7.2% for the same period.
The reason for this positive growth can be found in the rising affluence of the Chinese middle class and the increasing influence of western brands and culture, particularly in metropolitan areas such as Guangzhou and Shanghai. Female Fragrances accounted for the largest share of the market in 2012, with 83.5% value and 84.3% volume shares, and this stronghold looks to continue over the next five years, as the category is to grow ahead of the sector, at a value CAGR of 11.3% and volume CAGR of 7.2% to 2017. Both the male and unisex fragrance categories will also display high growth, although from a much smaller share than female fragrances. Male fragrances will grow at a value and volume CAGR of 10.0% and 6.6% respectively. Unisex fragrances are to show the lowest growth of the sector, at a value CAGR of 9.9% and volume CAGR of 6.5% between 2012 and 2017. Both hypermarkets/supermarkets and department stores have shown a spectacular gain in share of the Chinese fragrance sector in recent years.
