Luxury Fragrance Is Becoming A Bigger Business In India

For years, buying a luxury perfume often meant waiting for an international trip or asking someone travelling abroad to bring back a bottle. Today, that habit is slowly changing.

India's luxury fragrance market is growing as more shoppers are choosing to buy premium perfumes at home instead of waiting for duty-free shopping. Better access to global brands, dedicated perfume stores, and changing consumer preferences are turning fragrances into one of the fastest-growing categories in the country's luxury market.

According to IMARC Group, the Indian luxury perfume market was valued at $1.3 billion in 2025. It is expected to reach $1.9 billion by 2034, growing at a CAGR of 4.35 per cent between 2026 and 2034.

Industry executives say perfumes are no longer seen as just another grooming product. Consumers are now looking at fragrances as a way to express their personality. They are also becoming more curious about different scent families, premium ingredients, and niche brands.

That changing mindset is also helping luxury retailers expand their fragrance business in India.

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"The centre of gravity has decisively shifted onshore as an expanding network of trusted retailers bring genuine products to the hands of Indian consumers at prices which are competitive on the global stage. While many consumers continue their habit of duty-free purchase abroad, there might not be any price saving in doing so," said Shreshta Jana, director, luxe division, L'Oréal India, as quoted by ET.

Retailers are seeing shoppers move beyond basic deodorants towards premium fragrance formats. Body mists, eau de parfum and luxury perfumes are becoming more popular, especially among younger buyers who enjoy trying new scents.

For omnichannel beauty retailer Nykaa, fragrance has become one of its fastest-growing categories.

"A few years ago, deodorants dominated the market, but today consumers are moving towards more evolved formats such as body mists, eau de parfum, premium fragrances, and trend-led segments like gourmand scents. We are now selling one fragrance every five seconds across our platforms, which reflects both rising adoption and increasing frequency of purchase," a Nykaa spokesperson said.

The company has also opened two Nykaa Perfumery stores in Mumbai. According to the retailer, these outlets are generating nearly three times the average order value of its regular beauty stores. Its fragrance portfolio includes luxury names such as Chanel, Jo Malone and Tom Ford.

The shift is also creating more room for niche perfume brands that focus on unique blends instead of mass-market fragrances.

Scentido Niche Perfumery, which introduced artisanal fragrances in India's luxury retail market in 2018, says educating customers was one of its biggest challenges in the beginning.

"When we started, consumer awareness around niche perfumery was limited, and educating customers about the artistry, craftsmanship, and uniqueness behind these fragrances was an important part of our mission," said Shishir Mehta, managing director, Scentido.

He believes buying perfume has become a much more personal choice today.

"Consumers today are exploring niche and luxury fragrances, looking for unique compositions, rare ingredients, exceptional craftsmanship, and the stories behind each fragrance house," Mehta added.

While international travel still attracts buyers looking for limited editions or price comparisons, the Indian market is becoming the first stop for discovering new fragrances.

Mehta says the market now follows a hybrid model where Indian retail stores help consumers discover and repurchase fragrances, while overseas shopping remains relevant for exclusive launches.

Luxury fragrance demand in India is currently strongest in the Rs 15,000-30,000 price range. According to Mehta, this is where shoppers find the right balance between premium pricing and exclusivity. Beyond Rs 25,000-30,000, buyers are less influenced by brand names and more interested in the story, ingredients and craftsmanship behind a perfume.

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