In 2025, fragrance dominated the industry once again. Still one of the fastest-growing categories in beauty, a continued obsession with wardrobing and layering everything from body sprays to ultra-luxury perfumes drove a frenzy of new launches. But the market won’t be without its challenges in the new year.
The sky is the limit on pricing as high-end perfumiers such as Maison Francis Kurkdjian launched creations that stretched into the five-figure range and luxury fashion labels unveiled new high-end lines priced above $300, $400, $500 and beyond. Even more designer brands reentered the fragrance category this year, including Miu Miu and Balenciaga, leaving few luxury houses without their own signature scents.
Beauty companies have rushed to appeal to luxury fragrance shoppers across growth markets including Asia, the Middle East and Latin America. As Middle Eastern brands like Amouage saw rapid growth, global labels such as Louis Vuitton have adopted regionally inspired scents and layering practices to thrive in the booming Dubai perfume market. Estée Lauder Companies’ investment in Mexican fragrance brand Xinú was its first in a Latin American beauty label.
Young, buzzy startups flourished in the masstige and prestige segments as body spray launches continued in full force by labels like scent-forward sanitiser brand Touchland, which was acquired by Church & Dwight. Phlur’s acquisition by TSG demonstrated continued M&A interest in the category, while new brands such as Lore hit the market with luxury branding at a sub-$200 price point.
But signs of a less frenzied fragrance market in 2026 are on the horizon. Kering opted to forgo in-house fragrance production, selling its beauty portfolio that includes Creed to L’Oréal. Fragrance-heavy Coty, which is set to lose its Gucci license as part of the Kering-L’Oréal deal, has seen a slowdown this year (and a leadership shakeup). The mid-market $50 to $150 price range has seen a decline in overall sales as the market bifurcates. Consumers’ love of fragrance certainly hasn’t waned, but neither has the competition dwindled.
Top Stories
1. TSG Consumer Partners Acquires Phlur. The evocative masstige fragrance brand, relaunched by influencer Chriselle Lim and Ben Bennett’s The Center, will join the private equity firm’s portfolio, The Business of Beauty can exclusively confirm.
2. The Niche Perfumers Betting Big on Asia. Interest in niche fragrances is growing the overall perfume market in Asia, which has been historically dwarfed by its skincare and cosmetics segments. Global cult brands like Byredo are refreshing their local efforts to win big.
3. How Layering Transformed the Fragrance Market. From Chanel to Kayali, beauty brands at every price point are eschewing ‘signature scent’ marketing in favour of creating a wardrobe of perfume options.
4. The Fragrance Market’s Squeezed Middle. Fragrance may be booming, but the premium category has cratered compared to high-end niche perfumes and affordable body and hair mists that have become an expansion focus for brands.
5. What Comes After the Fragrance Boom. As consumer sentiment begins to dampen, the perfume industry’s explosive growth looks headed for a slowdown. Executives from Swiss fragrance and flavours firm Givaudan are confident in the strength of their business, but are diversifying into makeup, skincare and other categories to prepare.
6. How Niche Perfumers Pay to Win. Luxury fragrance houses like Marc-Antoine Barrois, Amouge and Krigler are pouring investment into their retail spaces, master perfumers and artisanal manufacturing — and reaping double-digit sales growth.
7. Can Designer Perfumes Win Over the Niche Customer? Luxury fashion brands like Bottega Veneta, Balmain and Rabanne are looking to cash in on the niche fragrance boom with new lines of ultra-premium scents. They face tough competition from more agile indies — and are dealing with a different kind of customer.
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