Pakistan’s perfume industry has grown a lot since 2017, with many local brands like Khaadi, Gul Ahmed, Bonanza, and Alkaram entering the market.
Previously dominated by foreign brands and J. Perfume, the industry is now seeing significant local competition. A study predicts the industry will grow annually by 9.6% until 2026, but industry expert Junaid ur Rehman believes the growth rate could be higher, around 16-18%, due to undocumented sales.
Brands started making perfumes locally around 2018 when the government increased import duties on luxury items. Instead of importing finished perfumes, companies now import components and assemble them in Pakistan, which is cheaper. Local production has also improved, with companies like Alpha Labs and Hemani making perfumes domestically. Despite higher taxes, Pakistani consumers still prefer premium perfumes and are willing to pay more for them.
The future looks promising for Pakistani perfumes, with potential export markets in Afghanistan, Russia, and South Africa. The government could support the industry’s growth by encouraging production and involving more companies. Overall, the local perfume market is expected to become a significant player in the next few years.