European Fragrance Category Proves Resilient

The European fragrance market has shown strong steady growth in 2023 and is proving resilient at a time that many consumers are becoming more cautious about purchasing higher priced items. The appeal of new fragrances seems never to go out of fashion as indicated by the steady stream of new launches, many in the second half of the year in the run up to the all-important holiday/Christmas period.

The $20 billion European fragrance market is in good shape, according to Euromonitor International, and is expected to end the year up 5.6% on 2022. The bulk of sales are for premium men’s and women’s fragrances sold in Western Europe: premium women’s fragrances are valued at $8.3 billion, up 6.1% and premium men’s are worth $4.6 billion, up 5.4% in 2023. Comparative sales in Eastern Europe show lower growth, with the premium women’s category worth more than $1.1 billion, up 3.6% and premium men’s $548.3 million, up 3.0% year on year.

Despite this optimistic picture, there are underlying trends at play which suggest that consumers are buying less and that volume growth is not as dynamic, said Magda Starula, consultant, Euromonitor International. “The essence is that we buy less but spend more,” she points out. “Consumers are obviously uncertain about tomorrow and they are trying to think of the best purchasing strategies.” These include online shopping, hunting for promotions and the best deals, as well as quick “ASAP” shopping—that is buying as soon as they see a satisfactory price in order to avoid future price increases.

These changing purchasing behaviors are reflected in research conducted by GlobalData Plc, who report that more than a third (39%) of European consumers on average say they would continue to buy luxury or expensive beauty and grooming brands in the next three months, a sentiment that strengthens as income level increases. “Premium brands will face least difficulty maintaining the custom of high-income consumers who are the least impacted by inflation, but will grapple with the falling custom of lower-income consumers who are prioritizing essential spend,” explains Lia Neophytou, lead analyst of health and hygiene insights, Global Data.

New Launch Activity

Fragrance launching remains a strong marketing activity across the European fragrance sector. Starula is noticing a trend for smaller sizes (with a more accessible entry price), wellness collections, skin scents, brand extensions and the continuous demand for long-lasting fragrances.

Global media company Refinery 29 has identified the following key trends in fragrance for fall/winter 2023:

• Caramelized Smoke: Smoky notes are becoming more prevalent among some fragrance launches, such as Boy Smells Hinoki Fantôme, which blends smoked leather and clean guaiac wood, and Guerlain Tobacco Honey, an amber woody fragrance.
• Sheer Scents: These fragrances have a sheer, gauzy and clean quality, but with a powdery comforting warm base. Examples include Phlur Father Figure, with suede-soft orris root, creamy sandalwood and green fig, and Prada Infusion de Figue, featuring a honey-like fig accord and galbanum, which is a Persian gum resin.
• Zeitgeist Notes: Bold florals, patchouli musk and powdery amber notes are typified by fragrances from bygone years spanning the 1920s (from Chanel No.5 and Guerlain Shalimar) through to the 1980s (Dior Poison). Harking back to these times is Ghost Deep Night EDT which combines rose and vanilla with white wood and apricot, and Mugler Angel, a perennial favorite which heralded the start of the gourmand fragrance trend with its beguiling notes of chocolate, caramel and vanilla.
• Sugar and Spice: Linked to the zeitgeist note trend are fragrances that have a distinctive sweet and comforting feel, with emphasis on vanilla, amber, sandalwood, cinnamon, saffron and oud. Examples include Kayali Invite Only Amber 23 EDP, made with oud oil, vanilla, sandalwood, amber and chocolate hazelnut, and Burberry Goddess EDP, a gourmand aromatic fragrance featuring a trio of vanillas with amber.

Sustainability Approaches

Carbon recycling is emerging as a key area of focus within fragrance as beauty companies partner with carbon capture companies to convert captured emissions into new ingredients for fragrances. For example, carbon technology startup Air Company has created Air eau de parfum, which uses a technology that transforms carbon dioxide into a pure form of ethanol, which is then mixed with water and scented oils to create the perfume.
French company La Bouche Rouge produces a range of five fragrances made from 30% upcycled and 100% natural ingredients. The bottles are designed to be keepsakes and each is housed in a hand-crafted leather case that reflects the five colors of each of the fragrances. The refillable bottle features a twist off spray and can be refilled with fragrance housed in 100% aluminum tubes.

Meanwhile, Guerlain has launched a number of planet-focused initiatives. The brand’s “bee university” brings together leading experts in an attempt to slow declining bee populations, while its support of Indian vetiver production has revived a slowing farm industry.

French company Sana Jardin uses sustainable and waste-reducing techniques to create its scents, and puts women at the heart of its alternative business model. “The company supports female flower harvesters in Morocco by helping them create and run their own businesses, using by-products from the fragrance-making process and ensuring they are kept in year-round work,” states Starula.

As the owner of British fragrance brand Floral Street, Michelle Feeney’s goal is to implement the five Rs (rethink, reduce, reuse, repurpose and recycle), across its entire business. Its innovative egg box style packaging was a world first for the perfume industry, and is made from a mixture of wet pulp, recycled FSC-certified paper, recycled fibers and up-cycled coffee cups. The box has the potential to be fully circular and can be repurposed to grow seeds, while waste pulp is used for composting on local farms.

Increasingly, sustainability is an important element of many fragrance companies’ goals, but there is still a long way to go. Glass bottles and cardboard packaging are recyclable, but there is still widespread usage of plastic cellophane and pumps. In the future, refillable bottles will be the way forward for many brands, but the industry still needs to address the growing problem of packaging disposal.

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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.