North America and Europe crucial Marketplace for Body Mist
The body mist market is expected to remain bullish throughout the analysis period, with higher forecast of projected CAGR as compared to historical CAGR. Among regions, North America and Europe together accounted for over 50% of the global market. The market is expected to witness strongest growth in APEJ region. Floral and fruity body mists represent over half of the body mist revenue share. The revenue through floral segment is also projected to witness the strongest growth during the forecast period. In 2017, women body mists represented over 68% of the revenue share for the global demand of body mist market. Prices of all body mists offered by various brands is expected to surge through the analysis period due to the expected rise in raw material prices and the distribution channel costs.
Increasing demand for body mist from millennials
Younger consumers (aged 15 to 25) among the global population are more aware about personal grooming and are ready to experiment with new concepts and brands. Also, the average ratio of younger population as compared to other age groups is significantly high, especially in developing countries such as China, Kenya and Brazil. This, in turn, is expected to boost the growth of global body mist market over the forecast period. Increasing inclination by millennials towards purchasing various products through online and e-Commerce channels are expected to drive global body mist market growth to a significant extent over the forecast period.
Transformational change in distribution channel
Earlier distribution channels were limited and most of the income for body mist industry was realized from traditional distribution channels like departmental stores and convenience stores. Now, the landscape has transformed completely. Modern trade channels like hypermarkets and supermarkets have enabled new avenues to body mist providers to market their product. Upsurge of specialized fragrance stores have given impetus to the sales of body mist products. E-commerce websites have now become the most used distribution channel by the customers, as they have the option to compare prices of the products on various e-commerce websites and gain information about the available substitutes in the market.
Improving lifestyle standards accentuating sales of body mist
Increasing westernization and rise in spending on personal grooming products in developing countries is driving the growth of global body mist market. Body mists are currently available with low concentration of fragrance oils due to the demand from increasing number of consumers who use body mist on a daily basis. Thus, there is an increase in frequency of body mists’ use and reduced recycle period, which is expected to further drive global body mist market growth.
Molding digital medium into profitable landscape
Digital media has proven to be an effective channel to advertise and promote beauty products around the globe. As global footprint has increased heavily on social media platforms, it has become beneficial for companies to promote their product intensively to their potential customers. For instance, Instagram is working with Sephora and Ulta to understand customer engagement through their platform for beauty products.
Insurgence of Natural and Organic Beauty Products
As majority of the population understand the hazardous effects of chemical products, there has been a sudden rise in demand for beauty care products, which possess natural and organic ingredients. Companies like Forest Essentials and Kama Ayurveda have an entire product portfolio based on natural and organic ingredients only.
Macroeconomic factors shaping the body mist industry
Social factors are highly favorable for body mists market. As many brands have started becoming widely visible with growing penetration of the social media. The advertisement efforts of the companies have been receiving positive response from the audience. Also, changes in perception of demographics have also helped the body mists industry, as several mid-income group customers have started to follow their western counterparts in terms of cosmetics consumption. Increase in the utilization of e-commerce websites have become an opportunity for the body mists industry. Emerging new technologies have made companies more efficient in energy saving and also reduced the cost incurred for manufacturing significantly. Marketing of products using social media platforms have proven to be productive for key companies.
Outlining strategies adaptable for body mist market
The use of renewable resources for fragrance ingredient production is the key agenda for global fragrance ingredients manufacturers for sustainable development. In 2014, International Flavors & Fragrances, IFF, a leading global fragrance ingredients manufacturer strengthened its collaboration with Amyris, a biotechnology company, to provide attractive renewable alternatives to petroleum-based raw materials. With advanced biotechnology, this collaboration aims to produce cost-effective and low carbon ingredients and to prevent supply volatility of rare ingredients. In 2015, Symrise, a global fragrance ingredients supplier acquired Pinova Holdings, Inc., a leading global supplier of natural feedstock derived ingredients.
Demand for classic and niche body mists is increasing, especially in mature markets, such as Western Europe and North America. Initially, the development and production of niche body mist were in the territory of only small manufactures. However, with increase in demand, global key players are increasingly focusing on strategic investment for development of classic and niche perfumes through acquisitions of luxury and classic brands.
Estee Lauder Companies Inc. acquired Editions de Parfums Frédéric Malle; a Paris-based manufacturer of ultra-luxury and exclusive perfumes.
In June 2016, L’Oreal announced acquisition of Atelier Cologne; a New York-based manufacturer of niche perfumes.