Fragrance Frontlines: Market Moves, Global Trends & Award-Winning Scents
2025 . 06 . 23 |
In this month’s editorial overview we look at the performance of fragrance in Europe and the US, we investigate several global trends and we laud the victors of the fragrance award season where niche brands are gaining accolades.
Market Snapshot: Q1 2025 in Numbers
As the first quarter of 2025 came to a close, Circana, the world leader in consumer market intelligence, released data on the performance of Beauty in key markets. The good news is that Fragrance continues to enjoy growth across Europe and the US, outperforming both Skincare and Makeup in both regions. Italy, France, Spain, Germany and the UK collectively posted a 4,5% increase over 2024, while the US reported dollar sales up 4% in the prestige channel and 8% in the mass market.
Digging deeper we find that Italy and Spain had double digit growth, the UK reported a high single digit increase, but France and Germany, where the economic situation is unstable, had single digit decreases or were flat. On a conference call last week, Sylvie Cagnoni, Executive Director, Circana Milan and Alessia Ceriani, Senior Account Manager, Beauty Italy, pointed out several factors that are contributing to the numbers:
*Spain and Italy saw a surge in tourism in the first quarter of the year
*Since the US and China are not as dynamic as they have been in the past, there is a glut of product on the market
* Consequently, the grey market is rising again and the dupe market is thriving
Sylvie and Alessia also reiterated trends they had called out at Esxence in February: higher concentrations and small sizes (less than 20ml), which come at an entry-level price point, are key drivers. In addition:
The global luxury niche fragrance market is forecast to grow from $1.77bn in 2025 to $3.03bn by 2033.
Discretionary Spending & Smart Luxury
Beauty has been referred to as the recession proof category. Yes, but consumers are now asking, am I being sold a bill of goods? Do I need 20 steps of skincare? Are Lancome and L’oreal sharing the same labs, so do I need to spend more on the basics if it’s coming from the same labs?
Consumers have become more value cautious and more discerning about how they spend their hard earned money. They are looking for deals, discounts and promotions, they want affordable and effective products in the care sector, and above all they don’t want to feel like they are being lied to. They are also looking at products considered “smart luxury”: those brands who strike a balance between quality, perceived value, price and image.
Dupes & Decants
The trend of buying dupes and decants goes hand in hand with the movement towards discretionary spending. We have to acknowledge the fact that many people have no shame in buying dupes, clones and fakes that resemble an original product yet cost a fraction of the price. It only stands to reason that in light of rising prices consumers are searching for alternatives.
Decants are sample sizes of niche and designer fragrances sold on websites like Decant Heaven and Scent Split. Customers can buy a 1ml sample of brands such as Parfums de Marly, Liquides Imaginaires and Nishane for less than 10€ - a budget friendly price for most demographics.
Certainly the intention is for customers to buy and try the decant then return for a full size bottle. While some follow this shopping pattern, others may be creating an extensive wardrobe of fragrances with decants. Of course, a 1ml size won’t last long, but with the number of brands to choose from, there is also less need to commit.
The concern with decants comes from the worry about whether the seller is legitimate. Are they sourcing directly from the brand? How are they storing and handling the product? Is the process done in a safe and hygienic, temperature controlled environment? Is the fragrance experience being respected? For all the Luckyscents out there, who are lauded by the industry, there are hucksters selling fake goods. All we can say is, “caveat emptor”, may the buyer beware.
Fun & Functional: Hair and Body Mists
We used to call them ancillaries – those scented products that were used in the layering process to ensure a long sillage. Starting with a soap or shower gel and finishing with a spritz of fragrance, or a touche of parfum, these items pre-dated the lure of high projection and performance, and instead prolonged the wearing time of the chosen fragrance while offering a pleasurable grooming experience. When Angel by Thierry Mugler launched in the 90’s , a hair mist, probably one of the first to market, was among the ancillary products.
Typically hair mists are alcohol-free and contain moisturizing properties to condition the hair. They are less costly than the original fragrance, but that’s not to say they are inexpensive: Parfums de Marly Delina and Byredo Mojave Ghost each offer 75ml Hair Mists around 66€ while the 100ml edp’s are well over 200€. Maison Francis Kurkdjian, ExNihilo, Diptyque and By Kilian are other (pseudo)niche brands who have gotten into this game.
In a similar vein, body mists are light, refreshing formats meant to be applied liberally. Their lower price and generous size appeal to young customers.
The global market for hair and body mists was valued at $8.57 billion in 2024 and is expected to reach $14.66 billion by 2031. Young consumers find these references to be fun, functional and relatively affordable. And for those who shun a loud fragrance, these products promote the idea that fragrance is the gift of proximity.
Comfort Cravings
Speaking of proximity, it seems everyone still wants to smell good enough to eat. TikTok and Google searches for gourmand fragrances are still the fastest growing trend posting a 172.4% increase to last year across platforms according to trend watcher Spate. Breaking it down, #strawberry, #Vanilla, #heavycream, and #coconut are the subcategories seeing the most traction now.
But the comfort fragrance trend extends into another major subcategory: Milk! Whether people are seeking solace from the woes of the world in a fragrance that brings back childhood memories of the white drink, or whether they want a skin-scent that still has an edible appeal, searches for milk scents are up over 100% on platforms. This trend appears to be more brand-driven where Lush, Dedcool and Phlur are the leaders.
If you remember walking the aisles at Esxence in February you can’t have missed 27 87 Perfumes stand calling out bananas. The brand was launching Hakuna Matata, a tropical fruity scent with top notes of green banana and mid notes of ripe banana. They were on to something as Banana fragrances are pegged to be the hottest scent of the summer, with searches across TikTok and Google posting a near 50% increase to last year.
Other niche brands with banana scents include Jacques Fath Musc Couture, Sarah Baker Jungle Jezebel, BORNTOSTANDOUT Nanatopia, and Maie Piou Banana Oud.
Travel Retail Today: From Transaction to Experience
As we rush through our daily lives, meeting obligations and answering demands, we often don’t have time to shop, except in an airport before a flight. Consequently, the travel retail sector is evolving from purely transactional to experiential. It makes perfect sense: the post-pandemic “revenge travel” phenomenon shows no signs of stopping. In fact, a recent study from McKinsey revealed that millennials and Gen Z spend as much as 29% of their income on travel.
Think back to your last vacation. You are more relaxed, more open to discovery, maybe even more curious than usual? You may also be a little less budget conscious, so you’re willing to splurge and treat yourself.
Brands with the means have opened outposts in key hubs around the world to engage with the consumer where they are. Skin and haircare brands are building mega-boutiques with spa rooms and in-store high-tech diagnostic tools in an effort to heighten the shopper experience.
Who isn’t charmed by special packaging? Innovative designs, unexpected materials, special sleeves or outer packs not typically available in the domestic market become not only attractive and collectible but also a memento of the destination.
Some brands are even taking it outside of the airport. Imagine attending a big event, like the Biennale in Venice, or Wimbledon, or a music festival. You are browsing booths and pop-ups who offer tax-free shopping with a valid boarding pass. It’s not a lofty dream any more.
Awards Season: Niche Brands in the Spotlight
The last few weeks ushered in awards season, from the Institute for Art and Olfaction’s Golden Pears in Los Angeles, to the many branches of the Fragrance Foundation in Paris, London and New York. Of course the IAO awards are for independent, artisan and experimental practitioners with scent, which clearly recognizes niche and artistic fragrance brands. However this year, more than ever before, the world of niche held its own next to prestige and big players.
In the UK, Marc-Antoine Barrois’ TILIA took home not one but two awards (Independent Fragrance and FragranceExtraordinaire). D. S. & Durga got the prize for Limited Distribution with the fragrance, Wear at Maximum Volume. Indie brand Edeniste took home the award for Scientific Innovation with Oud Ghazal.
In Paris, the French Fragrance Foundation awards took place on June 11th. In the niche category, Chambre 52 was awarded the prize for Young Independent Brand for Tobacco Memories while Une Nuit Nomade’s Estrella de la Mañana won the Independent Brand award.
Interestingly, the collaboration fragrance, Acne Studios x Frederic Malle won the UK award for Best New Fragrance and the French award for Best Niche fragrance (belonging to a group)
Over in the Big Apple, of the 19 awards handed out, nearly one third went to a (formerly?) niche brand. Byredo, Tom Ford, Kilian Paris, D.S. & Durga and Martin Margiela all went home with FiFi’s.
Indeed these brands aren’t niche anymore….they were precursors to the niche brands of today. But to paraphrase Michael Edwards, niche is a nursery school: brands come in young and grow up. Some are acquired and some remain independent. The positive message is that globally these brands are getting into the spotlight.
Closing Observations
Fragrance continues to outperform other beauty categories across key markets, driven by the continuing split between the pursuit of ultra-premium luxury and the rise of accessible, affordable formats. Trends point to strong growth in hair and body mists, continued interest in gourmand and “comfort” scents, and a thriving market for decants and dupes.
SOURCES
Beauty Shows Signs of Wear in First Quarter, per Circana
The End of the Lipstick Index | BoF
Meet the Discount and Niche Fragrance Sellers Gaining Popularity
‘Forget duty-free — the future is travel-based brand experiences’ | Jing Daily
Beauty's all-important experience factor in travel retail
Hair Perfumes Make Our Second-Day Strands Smell Fresh as Daisies | Allure
14 Best Hair Perfumes of 2025, Tested & Reviewed
Spate June Newsletter
The Fragrance Foundation unveils its 2025 Awards in New York - Premium Beauty News
Fragrance Foundation France Award 2025 winners revealed - BW Confidential