This week, I checked in with industry analysts to better understand the incredible growth taking place in the fragrance category. The fragrance category appears to be further polarized between mass-market and luxury products. Plus, the latest celebrity hair care and sunscreen launches, and executive moves are also worth noting.
The fragrance category is experiencing reverse growth and cracking due to high-end prestige and mass-stige products.
You might say 2023 was the year of fragrances, but with new market research data and an onslaught of interesting new launches, the category shows no signs of slowing down. However, what exactly shoppers are buying is tricky.
“Consumers are buying up and down on fragrances at the same time,” Jacqueline Wenskas, fragrance analyst at market research firm Circana, told Glossy.
on the one hand,”[Shoppers] They are gravitating toward more familiar, lower-priced alternatives such as body sprays, private label mass fragrances, and premium mini sizes,” Wenskas said. This includes masstige and dupe scents that are trending on social media, such as products from Phlur, Sol de Janeiro, and Skylar. Also included is the Discovery Set, which is particularly appealing to shoppers who want to own a ‘fragrance wardrobe’.
“Consumers are building their fragrance wardrobes to a 3 out of 5 standard. [consumers] “They change the scent they wear depending on their mood that day,” said Circana’s Wenskas. “This is especially true for the younger generation, who are increasingly interested in the fragrance sector.”
On the other side of the coin is prestige. Circana reported that U.S. prestige fragrances was the fastest growing beauty segment in the first quarter based on sales revenue, increasing 13% year over year. Within this category, fragrance gift sets increased by 22%.
According to market research firm Mintel, the launch of luxury and premium fragrances has continued to increase over the past five years. This means that in 2018, Prestige accounted for his 20% of all launches, but in 2023 it will account for his nearly 30% of all launches, with the largest growth of all categories. Masu.
Quality, craftsmanship, personalization and customization are the main drivers, Lauren Goodsitt, director of beauty and personal care at Mintel, told Glossy. “Consumers are turning to fragrance as a means of self-expression, and many are willing to pay more for hyper-personalized products,” she says. “Fragrances are part of the ‘snack culture’ and can also be seen as a way to enhance your overall sense of well-being and well-being.”
This can be seen in the rush to launch new luxury fragrances that offer some kind of differentiation. For example, the long-awaited fragrance “Orebella” launched by Bella Hadid in collaboration with Ulta Beauty consists of oil-based fragrances. Meanwhile, Sephora is betting on water-based fragrances with the launch of Clean Reserve in December. Historically, alcohol-based fragrances, which are long-lasting and do not stain clothing, have been the most popular formulations.
Customizable scents from the likes of French luxury perfumer Aix Nihilo (opening a flagship store in Los Angeles in 2022) and Olfactory NYC (expanding to Washington DC earlier this year) offer truly personalized options. However, many of them are formulated based on the original model to fill that gap. For example, Charlotte Tilbury entered the fragrance industry earlier this month with not one, but six of her fragrances tailored to your mood and personality. This allows customers to choose their archetype among her Calm Joy, Magic Energy, More Sex, among others, or choose a Discovery her set of all six. Hadid’s Orebella was also launched with her three scents and a mini roller for sampling.
Meanwhile, Coty, which owns the fragrance licenses for Burberry, Gucci and Marc Jacobs, said its luxury fragrance division grew 7% in the third quarter of its fiscal year ended March 31.
Still, the set reigns supreme. “Fragrance gift sets have outperformed the fragrance category as a whole in recent years, demonstrating that consumers are becoming more and more valued,” said Circana’s Wenskus. This includes bundle sets with full-size products and accounts for the majority of overall fragrance sales. “Meanwhile, travel-size sets, including the Discovery set, account for a third of all sets sold and are growing in popularity among consumers. On average, they cost half the price of full-size sets.”
Young shoppers also continue to demonstrate their purchasing power in fragrances. According to Circana’s receipt-based checkout data, sales of luxury fragrances among households with children earning more than $100,000 annually grew twice as fast as among households without children. “[This ties] This is mainly due to the growing interest in beauty products among younger consumers, especially Generation Alpha,” Circana’s Wenskus told Glossy. “In the prestige market, certain areas of the market benefited more than other buyers, such as body mists and mini or travel-sized fragrances.”
“Established brands have the opportunity to leverage a variety of product formats, such as hair perfumes and body care products, to help consumers experience luxurious scents on a budget,” says Mintel. Goodsitt told Glossy. Taking advantage of this opportunity is his Ouai brand, which has just launched a hair fragrance. Last month, Phlur released a body oil version of its TikTok-famous Missing Person scent. And Chanel has launched a new gardenia scented body oil.
“Based on Circana’s predictive models, the outlook for the fragrance sector in the coming years remains positive,” said Circana’s Wenskus. “There is still ample opportunity for brands and retailers to capture the consumers that will drive continued demand for fragrances.”
Executive movements:
- Amyris, a California biotechnology company known for producing synthetic squalene, has named Kathy L. Fortman as its new CEO. Amyris recently sold consumer brands such as Biossance, Rose Inc. and JVN Hair as part of its restructuring out of bankruptcy. Mr. Fortmann previously served as his CEO of ACOMO NV, a Dutch publicly traded company focused on conventional and organic niche foods and ingredients.
- Henry Rose, Michelle Pfeiffer’s genderless fine fragrance house known for its ingredient transparency, has appointed Laure de Metz as its new CEO. Previously, Mr. De Metz served as GM of LVMH’s Benefit Cosmetics.
- Hannah Beals has been promoted to CEO of Oaui Hair Care, a P&G company. She previously served as the brand’s chief brand officer.
- L’Oréal USA CEO David Greenberg has been elected chair of the Personal Care Products Council. He previously served as vice president of the industry association.
- Beacon Wellness Brands, a Yellow Wood Partners company, has appointed COO Maria Warrington as CEO.
News you need to know:
- Three Ships Beauty, a clean skin care line sold through DTC and retailers such as Credo and Detox Market, has raised $2.5 million in funding from Thrive Venture Fund.
- Violet Gray and Instagram sponsored a dinner in New York City to celebrate the artists working behind the scenes at Monday’s Met Gala. The dinner, a decades-old tradition, attracted more than 100 artists and was co-hosted by makeup artists Troy Surratt and Harold, and hair stylists Naivasha Grace and Jacob Rosenberg.
- Oddity, the company behind beauty brands Il Maquillage and Spoiled Child, raised its full-year outlook after first-quarter sales rose 28%.
- ColoupPop, a Los Angeles-based fast beauty retailer known for its collaborations, has teamed up with Pokémon to develop color cosmetics for the eyes, lips, and cheeks. These are available DTC on his website at ColourPop and at Ulta Beauty.
The heading looks like this:
Surfing icon Kelly Slater has launched Freaks of Nature, a sunscreen brand that uses reef-compliant zinc oxide, vegan squalane, and oceanbound recycled plastic packaging. Ritualist, a curly hair styling tools brand, landed his $150,000 deal on “Shark Tank” from Emma Grede and Mark Cuban. Brooke Shields is the newest celebrity beauty founder. Brooke Shields has launched her hair care product line for women over 40 called Commence. Emma Roberts has been appointed as Kiko Milano’s first global brand ambassador.
Need an overview of Glossy?
How Laneige stands up to Tem’s counterfeiters. Sayers taps DJ Pauly D for its first-ever celebrity campaign. EltaMD launches Deep Tint, a sunscreen protection product for darker skin tones. Our glamorous reporter talks about Pat McGrath, Charlotte Tilbury and their Met Gala beauty chances. Prose CMO Megan Streeter appears on her Glossy Beauty podcast.
