The Growth of India’s Fragrance Market; Key Stocks Involved

The fragrance industry in India is experiencing a significant transformation, fueled by changing consumer preferences, increasing disposable income, and a growing affinity for premium personal care products. As urbanisation and personal grooming trends rise, India has emerged as one of the fastest-growing fragrance markets globally. From deodorants and perfumes to home air fresheners, the industry is witnessing steady demand across different segments. 

In this article, let’s look into the rapid growth of the fragrance industry in India, the promising market outlook for the coming years and some of the key players and stocks involved in this fragrance sector.

Growth in the Fragrance Industry

In 2019, the Ministry of Micro, Small & Medium Enterprises, Government of India stated that the global fragrance and flavour industry is worth $24.10 billion and India contributes ~$500 million. 

In terms of market segments, the perfume market alone reached a size of $1,918.6 million in 2023. In 2024, India’s fragrance market is projected to generate a revenue of US$316.90 million, reflecting steady growth in the sector. This market segment is expected to witness an annual growth rate of 1.36% from 2024 to 2029, signalling a positive trajectory for the industry. While India’s fragrance market continues to expand, it still lags behind the United States, which leads globally with a revenue of $8,862 million in 2024.

India’s growing fragrance market is primarily driven by the demand for traditional and natural scents, which aligns with the increasing preference for indigenous and eco-friendly products among Indian consumers. The shift towards sustainability is further reflected in the surge in demand for natural and organic fragrance offerings.

As per NielsenIQ, the fragrance segment has seen a strong year-on-year growth of 12% as of September 2024, with deodorants being the key contributor. Roll-on deodorants, in particular, recorded a 26% increase in sales, highlighting the consumer shift towards personal care products. The overall FMCG industry grew by 5.7%, with the personal care segment expanding by 6.2%, further emphasising the robust growth in the fragrance category.

Key Stocks in the Fragrance Sector

Several domestic brands are expanding their portfolios to include luxury and niche scents, tapping into the growing consumer demand for affordable yet high-quality perfumes. 

• Shoppers Stop: Shoppers Stop Ltd is one the leading department stores with premier fashion and beauty brands. The company offers fragrance products as well from various brands all over the world. In Q2 FY 2025, the company reported that the Beauty segment had sales of Rs 218 crore, with 10% growth, led by the Fragrance segment 17%. On November 18, 2024, Shoppers Stop share price opened at ₹623.00, touching the day’s high at ₹632.05, as of 12:31 PM on the NSE.

• • Godrej Consumer Products Limited (GCPL): In Q2 FY 2025 financial results, Godrej Consumer Products reported their personal care and home care business segments grew YoY by 3% and 12%, respectively. Air Fresheners in the home care segment delivered double-digit volume growth. Aer O continues to outperform, along with gaining market share. Deodorants (Park Avenue) also delivered strong double-digit volume growth. On November 18, 2024, Godrej Consumer Products share price opened at ₹1,175.10, touching the day’s high at ₹1,190.35, as of 12:32 PM on the NSE.
  • Emami Limited: In Q2 FY 2025, Emami launched 2 new EDT Perfumes, under the brand ‘HE’. On November 18, 2024, Emami share price opened at ₹643.25, touching the day’s low at ₹619.05, as of 12:33 PM on the NSE.
• ITC Ltd: Known for its strong presence in the FMCG sector, ITC’s personal care segment includes fragrance products under brands like Engage. On November 18, 2024, ITC share price opened at ₹466.00, touching the day’s high at ₹467.55, as of 12:33 PM on the NSE. 

Apart from these, there are several other companies involved in the fragrance segment like Reliance Retail’s luxury beauty store Tira in Mumbai introduced a dedicated ‘scent room’ that offers a selection of high-end international fragrances and limited-edition collections.

Conclusion

As India’s fragrance market continues to thrive, companies and retailers are responding to the increasing consumer interest in both domestic and global fragrance offerings, positioning the sector for sustained growth in the coming years. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.