The global fragrance market is more competitive than ever, and it’s set to grow even further this year.
Statista forecasts that the category will generate a global revenue of €56.44bn in 2025, with a compound annual growth rate of 2.68% between 2025 and 2029.
The US is the biggest market in terms of revenue generation and is expected to reach €8,207m in 2025.
Statista also said it expected that 63% of the total sales in the Fragrances market will be attributed to non-luxury products by the end of 2025.
According to the market intelligence firm Mintel, prestige fragrance sales grew 13% in first half of 2024, while the body sprays sector more than doubled its revenue compared to 2023.
For 2025, the data analytics company Euromonitor International has predicted that there will be a sustained growth across price points, with double digit growth in both mass (+10.8%) and premium sectors (+12.2%).
Fragrance: a powerful self-expression tool
So why does fragrance remain strong and continue to grow while other beauty categories struggle?
According to IFF President for Fine Fragrance Sabrya Meflah, fragrance’s resilience stems from its deep connection to personal identity and lifestyle aspirations.
“Whether it’s evoking the contemplative atmosphere of a library through woody notes or capturing moments of joy through energetic compositions, fragrances have become powerful tools for self-expression and emotional storytelling,” she continued.
“Our research has confirmed that for 80% consumers, fragrance is an essential. There’s an intimate relationship between scent and identity expression, leading some individuals to move beyond the concept of a signature scent toward personal ‘fragrance wardrobes’ that reflect different facets of their personality and daily moments,” she shared.
A fragrance boom spearheaded by TikTok
According to UK based retail chain, The Fragrance Shop, key drivers for the category are social media, personalisation, innovation and sustainability.
It noted that “2024 has seen a fragrance boom that was spearheaded by TikTok.”
Meflah agreed that social media has had a big influence on the success of the category in recent years.
“This evolution in fragrance appreciation has been amplified by social media, particularly through platforms like TikTok’s #perfumetok, which has transformed how people discover and engage with fragrances,” she said.
In its annual report on the market, The Fragrance Shop declared that “a spike in demand from Gen Z has driven category growth” with a +70% YOY growth in younger shoppers this year.”
The retailer also observed that when it comes to buying fragrance, consumers are “more educated than ever before, the demand for quality, longevity, and value continues to be critical factors.”
It said that more diverse fragrance tastes have grown; consumers want more complex gourmands, higher intensities, and varied fragrance products. They also said that fragrance is a status identifier and that there are more people seeking unique scents, which is driving the growth of niche and artisanal brands.
Premiumisation & personalisation
According to Meflah, a global shift towards premiumisation is now reshaping the industry.
“Our Panoptic research showed that 62% of consumers in France, the US and China now prefer to invest in one quality fragrance over multiple cheaper alternatives,” she said.
“This aligns with growing interest in the creation process, from the field or lab to the perfumer’s studio, reflecting a deeper engagement with fragrance artistry.”
Meanwhile, the co-founders of technology-based fragrance company iRomaScents Avner Gal and Erin Berry, believed that scent’s ability to influence emotions and enhance moods is driving a shift in consumer behaviour.
“Today’s consumers, regardless of age, are building “fragrance wardrobes” that cater to specific moods, whether it’s the desire for adventure, relaxation, or nostalgia,” said Berry. “This trend will continue to shape the creation and marketing of fragrances, emphasising versatility and emotional resonance.”
Meflah also highlighted that IFF Fine Fragrance’s extensive research into the science of scent and emotion has revealed “that consumers increasingly select fragrances based on their desire for specific emotional experiences, from energising morning spritzes to calming evening scents.”
According to Gal and Berry this emotional link to scent has made personalisation a defining feature of the fragrance market. “Consumers are increasingly seeking customisable options, blending scents to reflect their individuality and preferences,” said Gal.
“An efficient personalised match not only simplifies the decision-making process but also fosters deeper engagement with consumers. When shoppers are quickly connected to a scent that aligns with their tastes, they are more likely to feel understood and valued.”
Berry added that today’s shoppers want products that resonate personally with their lives.
“The ability to seamlessly match consumers with fragrances they love builds loyalty and opens doors for brands to offer curated recommendations, further cementing the role of personalisation as a key driver in the fragrance industry,” she said.
Key olfactive trends for 2025
In terms of olfactive trends for this year, Meflah said IFF Fine Fragrance is seeing strong momentum in gourmand fragrances, particularly pistachio and vanilla notes. She also said that iconic florals like rose, peony, violet and orange flower are experiencing a renaissance globally.
“The fougère category continues to dominate the men’s market while making impressive inroads into women’s and genderful segments,” she continued.
Meanwhile The Fragrance Shop has predicted that gourmand fragrances will continue to captivate consumers “but with fresh twists that reflect broader societal trends and evolving palates.”
The retailer believed that this trend will evolve so that “milky notes will take centre stage with rich coffee and bitter green matcha. Umami notes of rice, sesame, nuts and pandan will create intriguing scents.”
The Fragrance Shop also agreed with Meflah’s prediction that there is likely to be a floral comeback.
“Rose will be reinvented in fresher, more complex ways, while violet will create soft powdery facets,” said the specialist scent retailer.
Other olfactive trends The Fragrance Shop highlighted for 2025 were:
- Amber will remain a key fragrance trend.
- Bright and exotic fruits will “continue to be reinvented in contemporary ways with cherry and stoned fruits becoming more sophisticated while tropical fruits, including green banana, will add playfulness to amber and leather notes.”
- ‘Barely-there notes’ will appeal to the growing consumer cohort that seek out lighter scents Skin-like musks, aldehydes and citrus notes such as yuzu will offer soft serenity compared to the beast mode scents.
- Vanilla will remain a popular trend. The Fragrance Shop said that the Carolina Herrera Good Girl scent, which has base notes of vanilla, saw sales increase by +27.6% in the retailer in 2024. Meanwhile YSL’s Libre, which has a Madagascan Vanilla base, has seen a +33.5% boost in sales.
- In 2025, The Fragrance Shop said it expected to see vanilla “twisted in new compositions such as pastries, caramel, fruits or sensual amber and creamy woody for deeper scents.”
Other trends the retailer highlighted for this year were:
- ‘TikTok-viral’ notes: “We’ll see scents featuring nostalgic or whimsical inspirations going viral on social platforms, such as “cereal milk,” bubblegum, or cotton candy with a sophisticated edge,” it said.
- As well as ‘interactive notes’: “Layerable gourmand scents that encourage users to create their own “signature dessert,” with multiple compatible products for layering.”
Tech playing a bigger role in the fragrance industry
Meflah said that the future of perfumery is currently blossoming from the intersections of creativity, science and sustainability, which offers plenty of opportunity for innovation.
“Our R&D pipeline is advancing both new fragrance molecules and natural ingredients, while our augmented perfumery tools are enabling perfumers to harness AI capabilities that break barriers and foster creativity,” she shared.
She referred to IFF Fine Fragrances partnership with sound lab Ircam Amplify, which she said is “revolutionising how we understand the emotional impact of fragrances.”
“Already we’ve discovered that pairing fragrances with sounds that evoke their emotional essence can increase purchasing intent by over 50% on e-commerce platforms, deepening our understanding of sensory and emotional connections in the digital space,” she shared.
According to Gal and Berry, the consumer desire for bespoke experiences will accelerate the adoption of technology that streamlines fragrance selection.
“Technology is revolutionising how consumers interact with fragrance, blending innovation with sensory appeal,” said Berry.
“Tech-infused fragrances are gaining traction with products like wearable scent devices, smart diffusers, and synchronised scent experiences. These tools offer adaptive features, such as releasing specific scents based on the wearer’s mood, environment, or activity level.”
Gal highlighted that iRomaScents is combining personalisation with AI “to offer a tailored, efficient, and immersive fragrance selection experience.”
The tool uses an AI Wizard with a sophisticated algorithm to guide users in real-time through questions about their scent preferences, emotional states, price range, and more.
“In just under two minutes, customers are matched with a curated set of fragrances that perfectly align with their needs, avoiding the traditional overwhelming trial-and-error method,” explained Gal.
“By offering personalised recommendations and sample spritzes along the way, this enhances the user experience and consumer satisfaction, while also addressing challenges like fragrance fatigue,” he continued. “This technology empowers shoppers to make more informed decisions without relying on tester sprays or guessing which scent will work best.”
Retail trends for scent in 2025
When it comes to where people will buy their scent in 2025, The Fragrance Shop predicted that bricks and mortar still remains the main channel where consumers are purchasing fragrance, versus ecommerce.
The retailer referred to data from WGSN that said 57% of consumers across 30 countries want to see, touch and feel a product before purchasing.
The Fragrance Shop shared its retail insights for selling scent in 2025. This outlined that:
• Experiential spaces will dominate luxury engagement.
• There will be an explosion of niche and artisanal stores this year.
• Physical stores remain dominant, as Gen Z goes from TikTok discovery into store.
• Engaging décor, personalised services, and AR will all help to boost sales.
The retailer also said that virtual ‘try-ons’ will gain more momentum: “Enhanced virtual sampling experiences using augmented reality (AR) or apps that simulate scents through descriptive multimedia storytelling,” it said.
As will multi-sensory experiences. “Engaging multiple senses at once is a great way to truly engage consumer and leave a lasting impact in their memory,” it continued.
“Pop-up scent bars, sensory booths with visual, audio and tactical elements to deepen fragrance experience.”
Beyond retail: expanding applications for tech in fragrance
One thing that is certain is that the future of fragrance is no longer confined to the perfume aisle in physical stores.
As technology continues to evolve, fragrance is making its way into new spaces, enhancing experiences far beyond the traditional retail environment. The trend of expanding fragrances beyond retail is gaining momentum, as consumers increasingly seek multisensory, immersive experiences that appeal to emotions, memory, and well-being. These advancements represent an exciting shift in how we experience scent, transforming it from a simple product into an integral part of everyday life.
Berry said that iRomaScent’s technology which is being tested to expand beyond retail into other areas, including entertainment, wellness, and education.
“Imagine synchronised fragrances in cinemas or virtual reality environments that immerse the audience in scent-driven experiences, or smart diffusers that adjust aromas in real-time to enhance focus, relaxation, or sleep,” she said. “These innovations represent a future where fragrance seamlessly integrates with daily life, enhancing every aspect of a consumer’s emotional and sensory journey.”
“Imagine synchronised fragrances in cinemas or virtual reality environments that immerse the audience in scent-driven experiences, or smart diffusers that adjust aromas in real-time to enhance focus, relaxation, or sleep.”
Erin Berry, co-founder IRomaScent
The future of fragrance: beyond 2025
For Meflah the fragrance industry is now entering a transformative era, shaped by technological innovation, evolving consumer expectations, and the growing importance of personalisation. “In 2025, fragrance trends will prioritise mood-driven purchases, tech-infused solutions, and seamless shopping experiences, redefining how consumers explore and connect with scent,” she shared.
While Gal added that in the upcoming years, fragrance will no longer be solely about smelling good. “It will be a powerful tool for mood enhancement, self-expression, and sensory exploration. With tech-infused solutions leading the charge, the future of fragrance promises to be more personal, adaptive, and engaging than ever,” he concluded.