Despite COVID Restrictions, Fine Fragrance Flourishes

Brazil is in the No. 2 fragrance market in the world. It trails only the US and is ahead of Germany. The global fragrance market grew just 6% to nearly $44 billion from 2015 to 2020, according to Euromonitor International. Those gains were dwarfed by Brazil, where sales surged 46.2% during the period to exceed $5.4 billion. For comparison, sales in the US grew 3.4% to nearly $8 billion and shrank 6.9% to $2.4 billion in Germany. Euromonitor predicts global fragrance sales will grow 17% in value through 2025. The best opportunities are expected in Brazil, where it will grow 15.9%, compared to 3.4% gains in the US and 1.2% in Germany.

Brazilian fragrance sales held their own during the pandemic; 2020 sales increased 8.4%. In contrast, overall sales of toiletries, fragrances and cosmetics rose 5.8%, according to the Brazilian Association of Cosmetics, Toiletry and Perfumery Industry (ABIHPEC). Consumers’ access to fragrances were enhanced by shared social media experiences and virtual interaction with brands. Adding to the gains were companies’ willingness to invest in alternative sales channels—proving that it is possible to attract shoppers even from a distance. Another trend is the growing interest in domestic fragrance brands among Brazilians. They’ve been drawn to local scents due to international travel restrictions and rising prices due to the real’s devaluation. Of course, consumers have been drawn to innovations from international fragrance companies, too.

What are they buying? Primarily, mass market scents. Although premium fragrance sales rose 76.7% from 2015 to 2020, more than 93% of Brazilian fragrance sales occur in mass channels. In comparison, less than 38% of global fragrance sales occur in mass. That percentage is 11.2% in the US and 33.4% in Germany, according to Euromonitor. Forecasters predict that mass fragrance sales will grow 17% through 2025 while premium scents will add just 0.9% during that time.

According to Segmenta, a Latin America marketing intelligence and research company, the best-selling feminine fragrances in Brazilian selective markets last year were: La Vie Est Belle (Lancôme), Good Girl (Carolina Herrera), 212 Vip Rosé (Carolina Herrera), J’adore (Dior) and Idôle (Lancôme). The top five men’s fragrances were: One Million (Paco Rabanne), Sauvage (Dior), 212 VIP Men Black (Carolina Herrera), Invictus (Paco Rabanne) and 212 men (Carolina Herrera).

Meaningful, Digital Experiences

Natura &Co is the No. 1 fragrance producer in Brazil with a 28.9% value share, according Euromonitor. Building on that advantage, this year Natura &Co is offering a scented experience with its prestige brand Essencial. One of the company’s best-sellers, these new kits enable consumers to try Essencial fragrances without leaving home. Each feminine and masculine kit contains four Essencial fragrances. Users try before they buy, just pay for what they like and return the rest.

Last year, Natura &Co launched a digital testing device for select retailers and its own sales force. The tablet-like device uses apps to test as many as 20 fragrances. Users can choose from a catalog or take a quiz to find their fragrances. The device spritzes fragrances with a residue-free technology called “dry air.” Users can try many products in a much more hygienic way, according to Natura &Co.

According to Segmenta, brands like Amyi in Brazil and Falabella in Peru are promoting fragrance use by offering full size samples and generous return policies. Segmenta noted that fragrance brands are reaching the consumer online, but they also are connecting with them through different and meaningful experiences. O Boticário created the Privée Scent Lab, where customers can create their own fragrance by choosing one out of 10 possible bases and three out of 11 notes. Product labels can also be personalized. This service is currently only available at the flagship in São Paulo.

Lancôme also offered meaningful experience through the partnership with Razões para Acreditar. Translated, as “Reasons to Believe,” the website is focused on positive content. Together, Lancôme and Razões para Acreditar are supporting 25 flower shops in São Paulo. The shops’ stories were shared in the brand’s social media/website and 15,000 La Vie Est Belle Intensément samples were sent to participating shops as a gift-with-purchase. 

Local Ingredients & Neuroscience

Natura expanded the Essencial portfolio in April and May with the Essencial Oud Collection. Essencial Oud Vanilla and Essencial Oud Pimenta are said to enhance Oud, known as the “liquid gold” of perfumery, in combinations with ingredients from Brazilian biodiversity. Essencial Oud Pimenta features Brazilian piper, a pepper native to the Atlantic Forest, which has a warm intensity while providing a fresh contrast. Essencial Oud Vanilla, proposes the meeting of Oud wood with the Bahian Vanilla, an ingredient never used before in perfumery, which undergoes a hand-pollination process. Both have feminine and masculine versions.

In a nod to neuroscience, Natura launched Beijo de Humor (Kiss of Humor) on Valentine’s Day. Developed with Symrise’s neuroscience unit, the scent tries to recreate the real connection of kissing. Both masculine and feminine scents have plum notes and a creamy touch of cocoa from Amazonian biodiversity. The combination, according to Natura, boosts attraction and invites users to live moments with more love and humor.

O Boticário, in turn, launched Arbo Botanic. This male scent is inspired by the urban forest movement and the green leaves of Costa-de-Adão (Adam’s Coast). According to proponents, urban forests deliver ecosystem services critical to human wellbeing and biodiversity. By strategically expanding urban forests, communities, particularly the vulnerable, lead healthier, happier and enriched lives. According to O Boticário, Arbo Botanic captures moments of pleasure and energy that can get lost in the rush of everyday life. Neuroscience researchers say this energy is enhanced by nature.

There is great potential for Brazil’s fine fragrance market. Perfumers are incorporating regional ingredients with new technology and formats to amaze and entice consumers. 

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Daniela Ferreira
Correspondent
danief@uol.com.br
55-11-993880867
 
Daniela Ferreira is a marketing and communication professional in the cosmetic market. She has a master’s degree in fashion from the University of São Paulo (USP). The study presented in the thesis, integrated product launching in fashion and perfume, mainly comprising marketing studies related to brand, product and consumer behavior. At present, she is lecturer on marketing issues. Her expertise comprises managing and launching products, communication planning and market studies for identifying new business opportunities.