With beauty ranking among the top online shopping categories in 2023, starting a store in this industry seems like a lucrative business opportunity. After all, revenues from the global beauty industry are forecast at a record-high $579 billion this year. 

But before you jump into launching a beauty brand, it would help to get a sense of some of its best-performing product types, such as fragrances. Here’s a look at the fragrance industry worldwide and a breakdown of its revenues. 

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How much is the fragrance industry worth?

According to recent data, the global fragrance sector is expected to generate $58 billion in revenues in 2023. This marks a 9.44% annual increase from the previous year—the third consecutive year revenues have increased and the fastest annual growth rate expected in at least 10 years. 

It’s also set to be the second-fastest growing beauty product in 2023, after cosmetics, and constitute 10% of the entire beauty industry’s revenues. In other words, $1 out of every $10 spent on beauty items this year is expected to be on fragrances.

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The global fragrance market has generally been growing its annual revenues in recent years. In 2018, revenues were at $53 billion, which held steady in 2019. In 2020, as the economic impact of the COVID-19 pandemic hit, the global fragrance industry shrunk, along with many other sectors. That year, revenues from the fragrances market contracted 11.32%, as revenues declined to $47 billion.

The global fragrance market size quickly rebounded in 2021, with overall revenues growing by 8.51%, to a total of $51 billion. In 2022, it rose another 3.92%, to $53 billion.

Global fragrance industry: 2024–2028 revenue forecast

Looking ahead, the global fragrance sector is set to continue growing. Revenues from 2024 are forecast to increase by 3.45%, to $60 billion. They’re expected to rise another 1.67% and 4.92%, to $61 billion and $64 billion in 2025 and 2026, respectively. 

In 2027, the fragrances market size is predicted to hit $66 billion, a 3.13% annual rise, before another increase of 1.52% to bring total revenues to $67 billion in 2028.

From 2024 to 2028, the global fragrance market is forecast to increase its revenues by $7 billion, rising at an average annual growth rate of 2.9%.

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