These days, Europeans expect much more than just a wonderful scent from their fragrance. They look for added claims, such as ingredients proven to make them feel good. However, the high price of fine fragrance is driving some European consumers to experiment with more affordable formats, which has led to an increase in activity at the lower price points. 

A combination of higher prices and consumers chasing offers and discounts are driving sales of men’s and women’s fragrances in Europe. According to Euromonitor International, sales of total fragrance across Europe are expected to climb 6.7% this year to reach $22.6 billion. 

“Entry price has been escalating for quite some time,” confirms Kayla Villena, Euromonitor’s head of beauty & personal care research. The company’s Price Tracker Database highlighted the trend for rising fragrance prices in France, Germany, Italy, Poland and the UK between January 2023 and September 2024. 

According to the Euromonitor Beauty Survey 2024, fielded in June and July, 18% of consumers globally said that “sale/discount offer in-store” influenced their fragrance purchasing this year, confirming that people are sensitive to price changes within the fragrance category. In Europe this is most marked in Poland (25%), followed by Italy and the UK (18% each), while France (17%) and Germany (14%) were both lower than the global average. 

A Polarizing Market

Lorna McKay, co-founder of The Perfume Society, a website and subscription organization for perfume-lovers, identifies several polarizing trends within fragrance. At the high end, extrait de parfum is proving popular among consumers looking for a stronger formulation. At lower price points, hair mists, smaller sizes (either handbag or 30ml) and fragrance ancillaries, such as body lotion, curry favor. 

“The result is widening the potential customer procurement: pushing the price point higher for those who can afford an extrait de parfum, while hair mists, smaller sizes and ancillaries help to entice a ‘new’ customer to niche fragrances who possibly may not want to or cannot afford to spend on an eau de parfum,” affirms McKay.

That said, several niche launches caught her eye: 

Thameen’s Britolgne (an amalgam of the words British and Cologne) Collection are all long-lasting fresh fragrances. “Their creative director, Christopher Chong, is a genius and chooses the best perfumer for each creation.”

Diptyque’s collaboration with perfumers to create innovative formulations for things that don’t smell, such as coral. 

Parfum de Marly has very few, if any, fragrances that do not resonate with their customers, according to McKay. “They know who their customers are. Their personnel are so passionate and well-trained.”

Fragrance du Bois bucks the trend for gender-free fragrances and launched its first female fragrance. Previous creations were aimed at everyone. 

Creed is going back to its roots with a range of luxury fragrances, limited edition sets and sumptuous accessories and body care. 

Brazil’s Granado makes fun, affordable perfumes, “using fabulous perfumers,” said McKay. New gourmand launches are Fervo Intenso, made with cacao and cachaça notes and Esplendor, featuring balsamic vanilla and salty notes. 

Big News from Big Players

Inflation may be, in part, responsible for rising prices, but fragrances remain in high demand as beauty companies invest in the category. Innova’s Premium Market Report: Fragrance 2024, lists several initiatives, including Estée Lauder Companies’ new atelier in France, which will focus on fragrance innovation and craftmanship to drive breakthrough products, packaging and concepts to enable greater speed-to-market and scale. 

Meanwhile, Coty launched a line of premium fragrances called Infiniment Coty Paris, consisting of three collections of 14 high-end perfumes, which feature “minimum formulation” and use upcycled alcohol and purified water combined with a patent-pending technology designed to extend the lasting effect of each scent by up to 30 hours. 

Innova noted a trend among fragrance houses to create ultra-luxe fragrances with high price tags, exclusivity and superior quality to appeal to high-end customers seeking the finest creations with rare ingredients and opulent special edition packaging that makes them collector’s items. For example, Victor & Rolf created a special edition scent in celebration of Flowerbomb’s 17^th anniversary. Flowerbomb Haute Couture Eau de Parfum ($2,700) comes in a luxurious bottle decorated with gold flowers and thorny branches. The bottle was created using 3D carbon-printing technology. 

Collector’s seasonal editions are proving popular. LVMH-owned Guerlain launched a Year of the Dragon bee bottle for Chinese New Year ($816). Created by Parisian jeweller Atelier Truscelli, the bottle neck features a gold dragon decorated with Swarovski crystals. 

Key Trends to Watch

According to Euromonitor, emotional wellbeing and “skinification” are important trends within the European fragrance market. 

Vilena highlighted several emerging skin health fragrance claims in Western Europe, such as “fatigue relief,” “aiding sleep” alongside “non-irritating” and “antioxidant.” Certain formats lend themselves well to this trend, she added. 

“Although emerging formats, e.g., solid fragrances, hair fragrances and microbiome-friendly fragrances make up a small fraction of the fragrance market, these features are well poised to expand usage occasions and lengthen increasingly holistic beauty rituals,” Vilena said.

Meanwhile, emotional wellbeing is a top priority because of rising stress and anxiety levels among consumers.

“Post-pandemic, fragrances are no longer just about personal signature but have become a way to convey positive emotions,” states Vilena. “Consumers are craving more sophisticated results, and a transition is expected from more general ‘aromatherapy’ benefits to ‘aromachology,’ which is the study of how scents trigger a response in human behavior and emotions.” 

McKay agrees that wellbeing in fragrance is a growth trend. She cites Edeniste, a collection of active wellness fragrances driven by neuroscience. Vyrao is another fragrance brand whose products are designed to lift and shift mood in different ways by harnessing the principles of neuroscience and energy amplification. Its latest fragrance launches are described as clean “neuroscents” which were measurably proven to increase mindfulness (The Sixth), joy and self-confidence (Sun Rae) and groundedness (Mamajuju). 

“It is not enough just to be a brilliant smell. Fragrance must add something to how it makes you feel,” maintains McKay. 

These are wise words for any company looking to bring out a new fragrance in today’s crowded market.

Imogen Matthews

Headington, Oxford UK

+44 1865 764918
www.imogenmatthews.co.uk

Imogen Matthews is a respected consultant, journalist and researcher who commentates on trends in the beauty industry. She regularly contributes to many of the world’s foremost beauty trade titles, has served on the Board of Cosmetic Executive Women (CEW UK) and won the prestigious Cosmetic Executive (UK) Achiever Award. Founded by Imogen in 1993, The Premium Market Report remains the only in-depth report to examine trends in the premium cosmetics, skincare and fragrance industry.