In 2025, perfume dominated the trade as soon as once more. Still one of the fastest-growing classes in magnificence, a continued obsession with wardrobing and layering the whole lot from physique sprays to ultra-luxury perfumes drove a frenzy of new launches. But the market received’t be with out its challenges within the new yr.
The sky is the restrict on pricing as high-end perfumiers akin to Maison Francis Kurkdjian launched creations that stretched into the five-figure vary and luxurious trend labels unveiled new high-end traces priced above $300, $400, $500 and past. Even extra designer manufacturers reentered the perfume class this yr, together with Miu Miu and Balenciaga, leaving few luxurious homes with out their very own signature scents.
Beauty corporations have rushed to attraction to luxurious perfume buyers throughout development markets together with Asia, the Middle East and Latin America. As Middle Eastern manufacturers like Amouage noticed speedy development, international labels akin to Louis Vuitton have adopted regionally impressed scents and layering practices to thrive within the booming Dubai fragrance market. Estée Lauder Companies’ funding in Mexican perfume model Xinú was its first in a Latin American magnificence label.
Young, buzzy startups flourished within the masstige and status segments as physique spray launches continued in full power by labels like scent-forward sanitiser model Touchlandwhich was acquired by Church & Dwight. Phlur’s acquisition by TSG demonstrated continued M&A curiosity within the class, whereas new manufacturers akin to Lore hit the market with luxurious branding at a sub-$200 value level.
But indicators of a much less frenzied perfume market in 2026 are on the horizon. Kering opted to forgo in-house perfume manufacturing, promoting its magnificence portfolio that features Creed to L’Oréal. Fragrance-heavy Coty, which is about to lose its Gucci license as half of the Kering-L’Oréal deal, has seen a slowdown this yr (and a management shakeup). The mid-market $50 to $150 value vary has seen a decline in total gross sales because the market bifurcates. Consumers’ love of perfume actually hasn’t waned, however neither has the competitors dwindled.
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1. TSG Consumer Partners Acquires Phlur. The evocative masstige perfume model, relaunched by influencer Chriselle Lim and Ben Bennett’s The Center, will be part of the non-public fairness agency’s portfolio, The Business of Beauty can completely affirm.
2. The Niche Perfumers Betting Big on Asia. Interest in area of interest fragrances is rising the general fragrance market in Asia, which has been traditionally dwarfed by its skincare and cosmetics segments. Global cult manufacturers like Byredo are refreshing their native efforts to win large.
3. How Layering Transformed the Fragrance Market. From Chanel to Kayali, magnificence manufacturers at each value level are eschewing ‘signature scent’ advertising and marketing in favour of making a wardrobe of fragrance choices.
4. The Fragrance Market’s Squeezed Middle. Fragrance could also be booming, however the premium class has cratered in comparison with high-end area of interest perfumes and reasonably priced physique and hair mists which have turn out to be an enlargement focus for manufacturers.
5. What Comes After the Fragrance Boom. As shopper sentiment begins to dampen, the fragrance trade’s explosive development seems headed for a slowdown. Executives from Swiss perfume and flavours agency Givaudan are assured within the power of their enterprise, however are diversifying into make-up, skincare and different classes to organize.
6. How Niche Perfumers Pay to Win. Luxury perfume homes like Marc-Antoine Barrois, Amouge and Krigler are pouring funding into their retail areas, grasp perfumers and artisanal manufacturing — and reaping double-digit gross sales development.
7. Can Designer Perfumes Win Over the Niche Customer? Luxury trend manufacturers like Bottega Veneta, Balmain and Rabanne need to money in on the area of interest perfume increase with new traces of ultra-premium scents. They face powerful competitors from extra agile indies — and are coping with a distinct variety of buyer.
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