What: The fragrance category gets a shake-up as a new generation of brands addresses the trend of wellness, innovation, and sustainability.

Why it is important: In many cities, fragrance accounts for a large percentage of prestige beauty sales and is reported to be increasing. Credentials and marketing are falling behind successful campaigns which emphasize wellness and commitment to sustainable values.

Over the past decade, beauty brand acquisitions have been on the rise. Market research from the NPD Group notes that fragrance remains the “undisputed champion in beauty”. Strategic partnerships between fragrance brands and companies in other sectors have seen success as well.

As it is difficult to shift the needle in a crowded market, fragrance brands are betting on wellness, leaning into cultural hypes, and spotlighting sustainability. All of these tactics as well as harnessing influencers are drawing in young customers, whose spending is in flux as they are likely to have a fragrance wardrobe, rather than a signature scent, and are motivated by the experience of shopping and wearing the perfume.

Shifting consumer habits for fragrances