From ancient times, fragrances and essential oils have been used to create an aura of elegance to make a lasting impression and mask bad odor. Earlier confined to use among the rich and upper-class population, now perfumes and fragrances have become a part of daily routine for people from different demographics and social status. In India, perfume market is complex as consumers are presented with a vast array of offerings from prestigious brands to independent manufacturers. However, more big Indian names are setting eyes on the perfume market and launching affordable perfumes for the price-sensitive consumers.
India perfume market is growing at a substantial rate and is expected to reach USD1.02 billion by 2026. 

The growing use of perfume in India can be accredited to the rising working population, growing consumer preference to spend on grooming, increasing demand from millennial population, introduction of innovative fragrances by perfume manufacturers, and emergence of e-commerce channels facilitating online sales and easy availability of perfume for consumers. Rising brand awareness and availability of affordable price perfumes are also supporting the market growth.

Although the Indian perfume market is being dominated by unorganized players, there are many opportunities seen by domestic marketers to bring in quality and organized brand name in the space. Domestic players like Fogg recently launched a range of perfumes in prices less than INR 500, which has left major brands reconsider their pricing strategy for selling perfumes in India. The Made in India perfumes now traverse from mass brands available at chemists and general stores to niche fragrances available online. Thanks to social media and expansive availability of the Internet, consumers are not shying away to experiment with local homegrown brands.

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When it comes to luxury perfumes and extravagant scents, international brands like Gucci, Chanel, Dolce & Gabbana dominate. However, the Indianness of the aromas are garnering a favoring audience. Brands are focusing on providing affordable luxury at competitive prices while meeting commercial standards. Indian luxury brands like Naso Profumi, Maison de Fouzdar, Embark Perfumes, among others are focusing on providing consumers extravagant and luxurious appearances and making a name in the international perfume market. In addition, expansion of online and offline distribution channels is adding to the demand for homegrown luxury perfume brands in India.

The earliest scents used in Ayurveda for healing are becoming mainstream as consumers are integrating their beauty needs with hygiene, mental health, and aromatherapy. Indian perfume manufacturers are taking note of this rising trend of combining beauty with health and introducing innovative products that are rapidly becoming popular among domestic as well as Indian consumers. The rich flora and fauna can be advantageous for Indian vendors as the country can product organic fragrant raw materials that have great demand across the world. Hence, several major perfume manufacturers are investing in product innovation and development in regards to natural and renewable ingredients to serve the consumers that want to refrain from chemical-based ingredients and prioritize environment sustainability.
Indian perfume producers find many hurdles in generating and establishing a retail perfume brand, mainly due to complicated procedures and need for significant amount of time and money. Here, contract manufacturers can help both the domestic and international brands to tap the potential of Indian consumer market. Bo International is one of the best perfume manufacturers in India that provide contract manufacturing services to third parties. Floressence Perfume is another region’s premier fragrance contract maker that have international client for contract manufacturing, especially from the Middle East. Other players like PM Rathod & Co., Grace Enterprises, Life Together Co. Ltd., Oddway Exports, Robin Chemicals Pvt. Ltd., Kavit Polybind Pvt. Ltd., Neuchatel Chemie Specialties, Bhawani Industry, etc. provide contract manufacturing services to the perfume vendors. The government of India promotes contract manufacturing sectors in India, allowing a 100% FDI automatic route to make India a favorable destination for foreign players to expand their manufacturing operations.
Easy accessibility to raw materials can help the marketers eliminate the need for dedicating valuable in-house resources to the manufacturing process, which can lead to significant cost savings. Contract manufacturing would help small start-ups and medium-scale business to scale products with limited resources and control demand fluctuations seamlessly.
Way Ahead
Currently, the Indian perfume industry is valued at USD500 billion, a small slice of the global industry, reported to worth around USD24 billion. However, the industry has a potential to develop into one of the biggest in the years to come as the new breed of Indian perfumers are breaking stereotypes and trying to raise the bar for the Indian perfumes. Perception and scale are two of the biggest challenges that Indian perfumery is facing. Developing strong persuasion skill to convince retails to stand up to market leaders and share shelf space could help consumers be aware of the Indian-made perfumes, which could further add to their sales.