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The future of perfumery according to Gen Z

A focus on the impact of fragrance on mental and physical well-being

The future of perfumery according to Gen Z  A focus on the impact of fragrance on mental and physical well-being

Once, an increase in lipstick sales was a clear indicator of economic hardship, as consumers could only afford small luxuries. Today, the phenomenon has shifted towards fragrances, transforming the so-called "lipstick index" into the new "fragrance index". In recent years, branded fragrances have experienced a surprising boom, in stark contrast to global economic trends. According to a report by McKinsey, «[t]he global beauty market is set to expand, and it is expected that every category will see an increase in retail sales by 2028». Fragrances will be at the forefront of this expansion, with «an annual growth rate of 7%». Behind this rise lies a strong interest from younger generations: according to a report by Circana, in 2023, 83% of Gen Z used fragrances, compared to 79% of Millennials and 69% of Baby Boomers, while in 2024, «[f]ragrance is the fastest-growing category in prestige beauty» with a 12% increase in sales in the United States. According to a study by the investment bank Piper Sandler, spending on fragrances among teenagers rose by 26% compared to the previous year, making fragrances a distinctive element of Gen Z's personal brand.

Unlike previous generations, young people don’t stick to a single fragrance. The Business of Fashion highlighted how Generation Z «builds fragrance collections, follows trends (such as gourmand fragrances), and layers multiple scents at once». This shift has also influenced the market: in 2024, sales of prestige perfumes and colognes did grow compared to the previous year, but «a greater number of consumers leaned towards more affordable options for purchasing prestige perfumes and colognes, [...] with growth among buyers aged 18 to 24 driven largely by mini or travel-size formats». This approach represents a true challenge for companies, which must not only appeal to Gen Z – where figures like creators on PerfumeTok are increasingly influential – but also convince them to purchase full-size versions of luxury perfumes.

According to BoF, «[t]his largely depends on brands releasing innovative products in unique packaging and [meeting] Gen Z's – and increasingly Gen Alpha’s – desire for less expensive fragrances in the form of body sprays, hair perfumes, solids, and minis, without habituating them to buy the cheapest item.» Some brands have already begun addressing this challenge. Perfumehead, for example, offers alcohol-free scented oils that promise longer-lasting wear. Byredo has introduced solid fragrances, while Jo Loves offers fragrance brushes priced at $58 containing a gel to apply on the skin. Additionally, gourmand fragrances, inspired by food-inspired scents, continue to grow in popularity, as do those designed to enhance mood. Charlotte Tilbury launched the Cosmic Power collection with wellness-boosting properties, while Coty, in collaboration with adidas, created six fragrances designed to convey «positive vibes».

The evolution of the fragrance market thus reflects a profound cultural shift: fragrances are no longer just luxury accessories but tools for personal expression and well-being. The challenge for brands will be to balance accessibility and prestige, innovation and tradition, to win over new generations that are increasingly demanding and sophisticated. The future of the sector will depend on the ability to create products that not only reflect trends but also the values and aspirations of the younger audience.