PORT WASHINGTON, N.Y. — Market research company the NPD Group has announced that the prestige fragrance industry showed solid sales of $1.6 billion in U.S. department stores — up 7% year-to-date (January to September 2012) — with men’s fragrance sales growing slightly faster than women’s.
Designer fragrances, which account for nearly three-quarters of the total market, grew the same rate of the overall category performance, while jewelry and niche prestige fragrances almost tripled. Jewelry fragrance brands like Boucheron, Bulgari and Cartier, and niche fragrance brands like Creed and Jo Malone helped to take this segment of the fragrance category to double-digit growth in the first nine months of the year, according to The NPD Group.
“The fragrance brands that are being sold in more selective distribution are experiencing explosive growth. We’ve seen this trend with high-end designer brands like Tom Ford and Jimmy Choo, and this is also evident today with jewelry and niche fragrance brands,” stated Karen Grant, VP and senior global industry analyst of The NPD Group.
Grant continued, “Even though niche and jewelry brands make up only 9% of the total prestige fragrance market they are creating a new dynamic in the larger fragrance arena. They are growing faster than any other type of fragrance in the prestige space, and their combined sales are actually more than double the size of prestige celebrity fragrances.”
In addition to niche and jewelry brands experiencing the largest dollar growth, they generate sales at one of the highest average price points in the prestige fragrance market. While the average price in women’s and men’s for these fragrances is about $70, selections in this space may be in excess of $350, and leading brands are often in the $200 range.
“It is quite a compelling story that despite the economic uncertainties that prevail, we continue to see sizable pockets of growth in prestige fragrance. And, when one considers the price, these fragrances are often treasures and truly an investment,” added Grant.
“Yet, if we were to compare the scope of the premium market in countries like France, the U.S. still has significant opportunity to expand sales further in this frontier. Consumers are continuing to invest where they see the value,” Grant said.