The Economics of Smell: India’s Perfume Market in Transition

What does India smell like?

Walk into any beauty store, and you’ll see perfume shelves packed with options.

From affordable mass-market scents to luxurious international brands, fragrances are everywhere.

An increasing number of consumers are investing in perfumes, and it’s not hard to see why.

With 34% of the population being millennials, personal grooming has become a priority. This shift is fueling demand like never before.

Cities like Delhi, Mumbai, and Bangalore are leading the charge, with premium perfumes flying off the shelves.

The numbers say it all: the fragrance market is set to hit $2.12 billion by 2028, growing at 19.5% annually.

What’s driving this boom?

A rising middle class, booming e-commerce, and shifting urban lifestyles are key factors.

Over 120 million households are now opting for higher-quality personal care products, while over 300 million online shoppers are making perfumes more accessible.

India’s urban population, which crossed 480 million in 2023, is embracing luxury and mid-range fragrances.

The market is divided into mass, mid-range, and premium segments.

Mass-market perfumes, led by brands like Fogg, Wild Stone, and Park Avenue, dominate due to their affordability and reach.

Mid-range brands such as Skinn by Titan and Isak are growing fast as consumers trade up for better quality.

In the premium category, brands like Ajmal, Forest Essentials, and Nykaa are expanding their presence.

Nykaa’s prestige fragrance sales, for instance, surged 74% between 2022 and 2025, highlighting the rising demand for luxury scents.

Overall, the women’s fragrance market was valued at ₹10,859 million (7.31% CAGR, 2018-2023).

The men’s segment, worth ₹23,097 million (7.64% CAGR, 2018-2023), is also expanding rapidly.

Unisex fragrances are gaining traction too, as gender-neutral scents become more popular.

By 2029, the number of fragrance users in India is expected to reach 120.7 million, with user penetration rising from 6.2% in 2025 to 8.2%.

Government initiatives are playing a crucial role in shaping the industry’s future.

Make in India, launched in 2014, has attracted over $30 billion in investments, boosting local manufacturing.

Startup India, launched in 2016, has supported over 90,000 startups, encouraging innovation in beauty and personal care.

Despite the growth, challenges remain.

High competition among local and international brands forces companies to invest heavily in marketing and innovation.

Counterfeit perfumes undermine consumer trust and hurt legitimate sales.

High import duties on premium fragrances make international brands expensive, limiting their accessibility.

With more brands entering the market and consumer preferences shifting toward quality and exclusivity, the Indian fragrance industry is on the verge of a significant transformation.

The next few years will determine which brands can successfully capture a growing and increasingly discerning customer base.