Unlocking perfume industry's global potential

Express Tribune

23-02-2025

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The global fragrance market is thriving, valued at over $50 billion in 2023 and projected to reach $70 billion by 2028. Asia, particularly South Asia and the Middle East, is at the heart of this expansion.
Countries like the United Arab Emirates (UAE), India, and Saudi Arabia have well-established fragrance industries, driven by cultural traditions, rising disposable incomes, and a growing middle class. In South Asia, urbanisation, increased spending power, and a heightened focus on personal grooming and luxury have fuelled a surge in perfume demand.
Pakistan, with its rich cultural heritage and expanding consumer base, has the potential to become a significant player in this industry. However, despite its strengths, the country's perfume sector remains underdeveloped and underutilised in the global market.
Fragrances hold deep cultural and religious significance in Pakistan. Traditional 'ittar' (non-alcoholic, oil-based perfumes) has been part of Islamic and South Asian traditions for centuries. Widely used in religious rituals, weddings, and festivals, it remains a staple in many households. Meanwhile, modern perfumes have gained popularity as symbols of status and sophistication, especially among the urban youth.
The use of fragrances extends beyond personal grooming. In Pakistan, perfumes are an integral part of celebrations, from Eid festivities to weddings, where guests are often gifted ittar or designer fragrances. This cultural affinity for fragrances provides a strong foundation for the growth of the local perfume industry. The sector is primarily divided into two segments. The first is traditional ittar and essential oils, crafted using ancient techniques with natural ingredients such as sandalwood, rose, jasmine, and oud. Cities like Kannauj in India and certain regions in Pakistan have historically been known for ittar production.
Brands such as Ajmal Pakistan, S Abdullah, and Al Haramain have gained recognition for their high-quality ittar and essential oils, which are particularly popular in religious and cultural settings and have a growing demand in both domestic and international markets, especially the Middle East.
The second segment consists of modern perfume brands that offer affordable alternatives to international luxury fragrances. Companies like J Fragrances, WB by Hemani, Bonanza Satrangi, and Essence by Gul Ahmed have successfully carved a niche in the local market. These brands provide a diverse range of scents, from floral and fruity notes suitable for daily wear to intense, long-lasting fragrances designed for special occasions.
The demand for women's perfumes has also risen significantly in recent years, driven by factors such as increased workforce participation, targeted marketing campaigns by both local and international brands, and the greater affordability and accessibility of perfumes through e-commerce platforms. Brands like Fogg, Nishat Linen Fragrances, and Al-Rehab have introduced a variety of scents catering to women's preferences, ranging from light floral notes to rich, musky undertones.
Despite the growth of local brands, Pakistan remains heavily reliant on imported perfumes, primarily from France, the UAE, and the United Kingdom. Luxury brands like Chanel, Dior, and Gucci dominate this segment, with many Pakistanis purchasing these high-end products from duty-free shops or online platforms.
However, imported perfumes are often expensive due to high customs duties and fluctuating exchange rates, leading to a gradual shift in consumer preferences towards locally produced alternatives that offer similar quality at more affordable prices.
On the export front, Pakistan's perfume industry shows promise but remains underdeveloped. In 2023, the country exported approximately $4.43 million worth of perfumes and toilet waters (commodity group 3303), with major destinations including the UAE, the Netherlands, and the UK. While this figure remains modest, it highlights significant potential for growth, particularly in traditional ittar and organic fragrances. Comparatively, Pakistan imported $2.32 million worth of perfumes in the same year. Though exports exceed imports in this category, the overall trade volume remains small, indicating substantial room for expansion.
Several factors hinder the growth of Pakistan's perfume industry. A lack of standardisation leads to inconsistent quality control, affecting the credibility of local brands. Many manufacturers rely on imported synthetic fragrance oils and packaging materials, which increases production costs.
Limited global recognition and weak branding make it difficult for Pakistani brands to compete internationally. Additionally, inadequate investment in research and development prevents the creation of unique, long-lasting fragrances that could rival global competitors. Despite these challenges, there are numerous opportunities for growth. The rise of e-commerce and digital marketing has played a significant role in boosting perfume sales in Pakistan. Online platforms like Daraz, Shopify, and Instagram have made it easier for consumers to access both local and international brands.
Social media influencers and YouTubers such as Fragrance Hub Pakistan and Perfume Geeks have become key players in driving consumer interest through reviews and endorsements. Pakistan's ittar production remains an underutilised asset. With proper branding and strategic export initiatives, the country could position itself as a leading global supplier of natural, alcohol-free fragrances, particularly for the Middle Eastern market. The increasing global demand for organic and natural products presents an opportunity for Pakistani brands to establish themselves in this niche.
Investing in local production facilities could help reduce dependence on imported raw materials, lowering costs and improving profitability. Collaborating with international fragrance houses for technology transfer and expertise could further enhance the quality of locally produced perfumes.
Several Pakistani perfume brands have already leveraged celebrity collaborations to boost their market presence. J Fragrances partnered with actor Feroze Khan, while Bonanza Satrangi has associated itself with popular TV dramas to promote its scents.
The fragrance industry in Asia is expected to surpass $40 billion by 2025, with major growth concentrated in China, India, and the Middle East. South Asia, particularly India and Bangladesh, is emerging as a significant player in both production and consumption. Pakistan, with its strong local perfume culture and increasing consumer demand, has the potential to develop a world-class fragrance industry. To achieve this, key steps must be taken. Expanding local production is essential to reducing import dependence. Strengthening export markets, particularly in the Middle East and Europe, will be crucial in increasing Pakistan's global footprint.
Investing in research and development to create unique, high-quality fragrances can help Pakistani brands stand out in an increasingly competitive market. Additionally, improving branding and marketing strategies will be vital in establishing a global identity for locally produced perfumes.
Pakistan's perfume industry is at a crossroads. The scent of success is within reach – it is time to seize it.
THE WRITER IS A MECHANICAL ENGINEER AND IS PURSUING MASTERS DEGREE