Commenting on the recent announcement of Estée Lauder’s acquisition of Le Labo, Ildiko Szalai, Senior Analyst Beauty and Personal Care at Euromonitor International said the transaction shows Estée Lauder’s intention of “increasing share in the premium fragrances market”.

Actually, Euromonitor expects retail value sales for this category to grow by US$3.3 billion globally between 2013-2018.

(click to enlarge)

In such a context, Ildiko Szalai deems the operation to be very positive for the Estée Lauder group. “Significant market value growth is forecast especially for Estée Lauder’s core markets such as the US, UK and Russia. Le Labo has developed strong consumer interest with its clever distribution strategy as their fragrances are only available through their own outlets and luxury department stores," she says.