Scent in Transition: Shifts in Fragrance, Retail Evolution, and London’s Perfume Scene
2025 . 09 . 22 |
Is Fragrance Cooling?
After several years of unprecedented growth, the fragrance category is beginning to cool, though it continues to outperform other beauty segments. Various sources point to a continuation of double-digit increases in the first half of the year, though lower than the 20%+ surges seen in the immediate post-Covid years. Much of this momentum is being driven by launches, especially in the US where novelty accounts for two-thirds of the growth. Consumers are also buying more frequently—two-thirds purchased three or more fragrances in the past year, compared to just one-third two years ago—reflecting a growing appetite for exploration and variety.
Industry players remain optimistic despite the slowdown. Fragrance continues to be seen as an accessible luxury, a modern take on the “lipstick effect” as consumers indulge in small, meaningful purchases during uncertain times. While companies like Givaudan are preparing for longer-term shifts by diversifying into other categories, forecasts remain strong: Euromonitor projects fragrances will account for nearly a quarter of global beauty growth from 2024 to 2029, with a CAGR of 5.5%. With shoppers redefining “premium” as less about price and more about value and purpose, the category is evolving but far from fading.
From Storytelling to Story-living
“Forget storytelling. The future belongs to story-living – an approach that invites consumers into multi-sensory, participatory environments where brand narratives unfold experientially,” writes Allison Farrington in The Drum. Her words resonate as our community often reflects on the decline of the department store and wonders what might come next. Today, retail is no longer just about selling products—it’s about creating places where people want to spend time, connect, and feel part of something bigger. The best brands are turning stores into cultural spaces that heighten their values through design, events, and experiences that spark emotion and memory, sometimes even blending in wellness and lifestyle elements to make stores feel like sanctuaries.
In the fragrance world I experienced this first-hand when I walked into the Diptyque store on Rue de Passy in Paris. The shop is laid out like an elegant home where you move from room to room. Perhaps a reed diffuser greets you at the front door? An assortment of candles are placed on a lavishly set dining room table. Elegant dispensers of hand wash and hand lotion are placed next to a porcelain pedestal sink - well, don’t we all want our home to look like this? This is not a shop; it is a lifestyle environment that happens to sell fragrant products. It feels aspirational yet intimate—and I suspect we’ll see more of this concept in the near future.
Reflections on London
As warm summer days gave way to a wet start to Fall, your intrepid reporter hopped the Eurostar from Paris to London to check out the ever-evolving retail scene. Making a fast and furious dash through Fitzrovia, Mayfair, Soho and Covent Garden, I had just enough time to see and smell my way through intimate boutiques, department and specialty stores to get a current read on what’s happening in the world of fragrance in the British capital.
New & Notable: Floris and Gallivant
At the top of my agenda was a visit to Floris to meet Edward Bodenham, Perfumery Director and ninth-generation family member, alongside Nicola Pozzani from the Bespoke Perfumery team. For nearly three centuries, Floris has operated from its Jermyn Street address, establishing itself as Britain’s oldest family perfumers. I was eager to experience their spring launch, Purple Mémoire—a fragrant tribute to Ivy Lodge, the 19th-century Floris family estate. Before introducing me to the scent, Edward opened a treasured family album, sharing photographs of the stately home and its storied past.
“We wanted to create a modern interpretation of lavender”, Edward explained, pointing out that it’s a scent that can be polarizing. Purple Mémoire opens with bergamot, lavender and coriander – a kind of lavender tonic. As the fragrance developed on my skin the ambery, gourmand notes became more pronounced – I’ll be wearing this comforting, cocooning yet sophisticated scent throughout Autumn and beyond.
My next stop was Fortnum & Mason, where Nick Steward, founder of Gallivant, unveiled his new Gulf Collection during an intimate Meet the Maker event. Nick is a rare figure in the fragrance world—principled, passionate, and devoted to the art of niche perfumery. A one-man band, he creates scents that capture not just a place, but its spirit. His latest trio draws on personal memories of the Gulf, where he spent part of his childhood.
Ar Riyad conjures a hidden garden in the city, cool and green against the desert sun. Dubai recalls jasmine tea with friends as the day slips into evening, away from the city’s glittering façades. Souq Waqif pays homage to the historic marketplace of Doha, alive with oud, incense, and centuries of tradition.
To bring these visions to life, Nick collaborates with perfumer Céline Perdriel, whose contemporary artistry is layered with classical nuance and historical depth—an ideal counterpoint to Gallivant’s ethos of wanderlust and memory.
Retail Watch: Space NK Oxford Circus
On August 8th, Space NK opened its largest-ever shop (4,600 square feet) on Oxford Circus. This much-anticipated debut features makeup play stations, fragrance bottle engraving, interactive displays, and exclusive products. I had always admired Space NK’s apothecary aesthetic and curated brand mix, but I left disappointed.
Even prior to entering the store, I had to queue for at least ten minutes, yet the store didn’t seem overly busy. Once inside, an etagere to the left called out Bestsellers such as Diptyque, while to the right, a series of units held “Mini but Mighty” cross category products. I couldn’t help but think of Sephora’s Beauty-to-Go, a concept I’d worked on back in the early 2000’s which stimulates impulse buying.
The fragrance offering included familiar niche names (Byredo, D.S. & Durga, Editions Frédéric Malle) alongside Gen Z favorites such as Ded Cool, Phlur, and Pleasing. A large testing table for fragrance dominated the space. At the front of the store there is a body mist station where Sol de Janeiro takes pride of place. Bottles come out on a revolving conveyor belt – imagine a cross between baggage claim and a factory. May I say it struck me as somewhat juvenile?
Space NK as a company was only recently acquired by US beauty giant Ulta, however, this store already sports the American chain’s bright colors, simple merchandising and mix of high and low brands. This setting feels rather unworthy of housing luxury brands such as Bvlgari, Acqua di Parma, and La Prairie—though perhaps that sentiment reveals a touch of snobbery on my part.
Worse still, the makeup gondolas lacked tissues, applicators, or bins – one of my pet peeves when testing products. Instead, there is a central play station but when I visited there was no testing going on: it looked like a waiting room for abandoned boyfriends and husbands.
I had hoped for innovation and inspiration, but instead found a rehash of concepts I’d seen over the past 20 years.
Covent Garden: London’s Luxury Fragrance Hub
Covent Garden, long established as one of London’s premier beauty destinations, is expanding its prestige line-up with the arrival of four leading fragrance houses. Operator Shaftesbury Capital has confirmed that Byredo, Matiere Premiere, Initio Parfums Privés and Parfums de Marly will all open new stores, marking a wave of debuts, relocations and expansions across the neighbourhood.
Byredo is preparing to launch a 1,100 sq ft boutique inside Covent Garden’s Market Building, joining its existing Seven Dials location. The new space will showcase the Puig brand’s acclaimed fragrances alongside make-up, homeware, leather goods and accessories. French label Matiere Première will make its UK debut with a flagship on King Street, in a 50 sq ft unit.
Meanwhile, Initio Parfums Privés will enter the UK market with a store inside the Market Building, taking over the former 246 sq ft unit occupied by sister brand Parfums de Marly. Parfums de Marly, a fixture of Covent Garden’s luxury retail mix for the past three years, is upgrading to a 1,000 sq ft location on James Street.
In an article, Julien Sausset, CEO of both Parfums de Marly and Initio Parfums Privés observed, “The larger store will enable us to elevate the customer experience and showcase more of our heritage and artistry.”
The new arrivals join a roster that already includes Charlotte Tilbury, Jo Malone London, Chanel, Tom Ford, Guerlain, Penhaligon’s, Creed, Le Labo, Diptyque and Glossier, reinforcing Covent Garden’s reputation as a powerhouse for prestige beauty.
The district recently hosted its inaugural Big Beauty event, a 10-day celebration of beauty and wellness. Skincare, fragrance, make-up and wellbeing brands transformed the neighborhood into a “multi-sensory playground” of experiences.
Closing Thoughts
The fragrance industry may be slowing from its post-pandemic highs, but innovation, creativity, and consumer passion remain as strong as ever. Whether through immersive retail, heritage houses, or new community hubs like Covent Garden, the world of niche perfume continues to reinvent itself. Stay tuned to this site for future updates.
SOURCES:
https://www.beautyindependent.com/hot-fragrance-category-shows-signs-cooling/
‘Recession Glam’ fuels surge in fragrances and private label beauty brands - Premium Beauty News
What Comes After the Fragrance Boom | BoF
Why retail must be reframed as culture-coded | The Drum
Byredo & more join Covent Garden’s luxury scent revolution
How Covent Garden is becoming London's beauty capital - TheIndustry.beauty