The Niche/Artistic Fragrance Year in Review: Bye Bye 2024 & Hello 2025!

2025 . 01 . 23 | written by Karen Marin

Add to my selection

Essencional's original content

Fragrance lovers

Trends

When I worked in retail, January was always the time of what we called a “post mortum” – a period in which we assessed the year that just ended. What were the results? What worked, and what didn’t? What trends will continue and which are done? What does the consumer want? Although the last year may be “dead”, we can – and we should - learn from it. So, while the holiday decorations were coming down, I poured over the year that was to write a “post-mortum” on Fragrance. I also went back to the article I wrote last year in which I made some predictions to see how accurate I was.

Results

Fragrance is the Shining Star

Within the overall Beauty sector, fragrance is the fastest growing category as it continues to experience double digit increases. Even more encouraging for the niche/artistic segment is data from Circana indicating that fragrance is currently the only beauty category where prestige is outperforming mass. In fact, luxury fragrance sales saw a 15% increase. So many factors play a part in the growth, but one of the biggest shifts may be in the perception of fragrance as a product: it’s no longer considered a frivolous splurge but rather a means of self-expression linked to one’s identity and a source of well-being.

And the good news should continue in 2025. Euromonitor International predicts that fragrance will continue to see double digit increases with the premium segment coming in at + 12%. Circana is also bullish on the category.

“We are anticipating that growth will continue through 2027 for prestige fragrances. We don’t anticipate double-digit growth in 2026 and 2027, but we are forecasting double-digit growth for 2025.” Larissa Jensen, Senior Vice President, Global Beauty Industry Advisor, Circana

M&A

There is no dearth of companies looking to invest in or even acquire artistic fragrance brands. In 2024, Kering made a minority investment in Matière Première and Eurazeo did the same with ExNihilo. Dr. Vranjes was acquired by the L’Occitane Group while D.S. & Durga was picked up by Manzanita Capital. L Catterton, the LVMH-backed private equity firm, invested in the British vegan, cruelty-free brand, Vyrao.

When asked what it takes to be ripe for the picking, experts and analysts point to several factors. First of all, the bar has risen as most investors are intrigued by brands with annual sales upwards of $15 – 20 million, along with a hero product, a key point of difference and stand-alone stores. Since many of the big guys had a tough year from challenges in China to soft travel retail numbers in Asia to leadership changes, these conglomerates will be looking for brands who can deliver growth, in part to offset the slow performance of existing brands.

Today it’s clear that investors are cautious and they are looking to play the long game. Last year, I predicted they would be interested in “brands who are poised for expansion and rapid growth and who have a cult following.” A recent article in BeautyMatter confirmed that brands with a proven track record, with a loyal following, and with global recognition will spark interest. It’s long been a dinner conversation at industry tradeshows, “who will be snapped up next?” What do you think?

What Worked

#Perfumetok

Social media is the accessible springboard for communication, education, information and engagement, and TikTok has emerged as a powerhouse for perfume. The incredible activity on this platform has had a positive effect on the perception of fragrance, as well as the desire to learn about it and buy it. The Artistic/niche sector benefits greatly since these brands tend not to have significant advertising budgets. Consequently, when the users talk and a brand goes viral, Giardini di Toscana’s Bianco Latte for example, the exposure is phenomenal. TikTok really got its start during the pandemic and ever since it has been responsible for driving awareness and setting trends. Witness #ArabianPerfume which currently has over 42,000 videos. TikTok Shop allows brands to reach a much wider audience while the consumer enjoys the ability to browse and shop without leaving the platform. Although currently under threat of being banned in the US, on a global basis, TikTok remains one of the top apps in terms of popularity, a prediction I had made last year.

*Personalization and Customization

In 2024, there was a marked increase in the availability of bespoke and customizable scent experiences. Consumers have more opportunities to create their own fragrance as we have covered from brands such as the Experimental Perfume Club, Maya Njie, AquaFlor, 4160 Tuesdays and others. Consumers are no longer limited to what they find on the perfumery shelf – they can actually get in on the creative process to make something truly unique that distinguishes them from everyone else. There is definitely a greater bond with the fragrance they crafted as opposed to one they can buy in a shop.

*Olfactory Storytelling

Olfactive storytelling is more important than ever. It conveys the message through words and images when scent isn’t present, and consequently the perceived value of the brand comes from the narrative. Brands that are able to engage with their audience through authentic, inspirational, aspirational and differentiating content are able to build long-term, enduring loyalty with the consumer. Making an emotional connection is key as well as offering an experience not found elsewhere. An established brand like Amouage and a newcomer such as Agarthi captivate the user by taking them on an unparalleled olfactory journey to a real or imaginary place. Going forward, it will be increasingly important for brands to convey their unique point of difference in a way that taps into emotions and that intrigues the consumer.

Is it Working?

When I turn my attention to questioning what didn’t work, or is it working, I’m faced with some difficult topics.

Soaring price points vs Dupes

At some point in time, 300€ (or more) has become a normal price for a 100ml whether from an established or an unknown brand. Certainly, the cost of goods, the cost of being sustainable, the cost of transportation and so on goes into the equation, but are some brands pricing themselves out of the market? Let’s not forget that consumer confidence has been shaky, and consequently, high price points have alienated the aspirational customer – let alone the loyal one. Some people may buy a smaller size, but a substantial number have reacted in the most disturbing way: they opt for a cheaper “dupe” or “clone” and they share their cheap find online. This is particularly prevalent with Gen Z as many feel no stigma in trading down to copycats of originals. It does seem contrary for a demographic who talks about wanting to align values with where they spend their money, but the wallet is only so big and this is a reality we must face. It does make me wonder if the high price strategy has not in many ways backlashed by promoting Dupe Culture?

Mainstream/Designer Brands trying to get in the game

Designer brands continue to launch pricey “haute parfumerie” collections to get a piece of the niche pie (Loewe, La Collection Rabanne, Valentino, etc). This is not “new” but shows no signs of ending. I asked our founder, Silvio Levi, for his opinion on this point. “This trend has in fact not diminished and is in continual development, but it seems to be an attempt to replace artistic creations with an expression of luxury and limited series to go alongside the main business of the big brands.” He bemoaned the fact that the initial approach, such as with Hermessence, was much more exclusive, unique and selective with olfactory expressions that were more original and daring.

“What we see now is more an attempt to create high margins on “must have” products that often lack innovation and artistic courage but can be appreciated by a large public interested in buying a status symbol.”  Silvio Levi, Founder Essencional & Co-Founder Esxence

So, is it working in terms of ROI rather than as an artistic expression?

Eco-conscious and Mood Boosting Ingredients

Over the past few years we’ve witnessed the development of proprietary ingredients with a focus on sustainability and on mood enhancing from all of the major oil houses. There has been a huge push to create synthetic alternatives to natural ingredients which are either at risk of being depleted or in answer to the call to be eco-conscious in sourcing, harvesting and producing. Granted the R&D is made with the best intentions, however the message is still unclear to the consumer who continues to consider synthetics as “bad” and naturals as “good”. There is much more ground to cover in terms of educating the consumer on this topic.

The research into mood-enhancing ingredients has accelerated in 2024. Now coupled with AI, there are countless companies claiming to be able to develop fragrances that will evoke specific emotions, or that will enhance mood or trigger feelings. After having done a grass-roots test for an article recently*, I remain somewhat skeptical on the efficacy of scent eliciting specific emotions, even if it’s ”scientifically proven” . In my experience, if the user knows the mood the scent is supposed to evoke, the result is more successful. If they are blindly asked to identify the emotion they feel, things don’t match, and how can they when everyone has their own memory map and scent associations based on our upbringing?

Trends

A few years ago a colleague asked me if there really are trends in artistic perfumery. While we like to think that this is the sector of independents, creating what they want to make, it behoves any brand or retailer to be aware of what’s happening in terms of consumer behaviour, product development and olfactory tendencies. Knowledge is power, no?

Consumer Behaviour

As predicted last year, Gen Z has been a godsend for fragrance, and particularly for niche as they are open minded, adventurous and they like to experiment and be different. But they’re not alone as in 2024 teenage boys became the surprise “fragrance fanatics”. These young guys are on TikTok, sharing their (impressive) personal collections and recommendations. Fragrance lends them status, confidence and identify. However, they have further spurred the idea that quality equals tenacity as the continued demand for “beast mode” fragrances is a phenomenon coming from social media – and just look at the increase of “extraits” on the market. Should they make a mistake with a blind buy, not to worry: now there are “fragrance swap meets” where people bring their cast offs to exchange with someone who has something they prefer.

Product

Solid perfumes, roll-ons, pencil sticks or pens and hair mists join the small formats (10 – 30ml) as trending references. Although these aren’t necessarily new conceptually – solids have been around for years – they mark a return to nostalgic items that provide an uncommon way of perfuming oneself and are also conducive to fragrance layering. We’ve also seen the introduction of perfumed jewelry, fragrance for fabric and laundry and devices for perfuming the home. I had predicted a rise in refillable formats in 2024 but it is not so prevalent at this time, though some brands are offering refillable 100ml sizes.

Sweet, Startling and Sassy

From an olfactive standpoint, sweet gourmands are still one of the most popular fragrance families in general. Experts predict a turn away from the sugary sweet concoctions to more complex notes such as matcha and bitter almond. Tea is also on everyone’s radar, whether blended with fruit notes or as a standalone.

Functional fragrance took off last year as the world recognized how fragrance can enhance well-being. Both NEOM and Le Jardin Retrouvé offer pillow mists to promote a good night’s sleep while The Nue Company’s Forest Lungs claims to destress the user. All in all, fragrance continues to be a comfort, as predicted last year.

Artistic perfumery has always been about pushing boundaries, and in 2024, we saw a continued interest in out of the ordinary and avant-garde compositions such as Diptyque L’eau Papier, Abel Cyan Nori, and Zoologist Penguin. Amouage also broke new ground with the Essences collection which uses 30% perfume oil and a 6-month aging process in oak barrels with sandalwood chips.

And even if after the pandemic you just want to be left alone, Influencers and TikTokers are talking about Man or Woman Repeller scents, where they mention Francesca Bianchi Dark Knight and Toskovat Born Screaming.

Conclusion: Looking Ahead

I’m happy to say the future continues to look bright for the fragrance category and particularly for niche. Interest continues to grow and consumers are looking for uncommon scents that suit their persona with a preference for “low commitment” sizes that pave the way for everyone to create a fragrance wardrobe. A few select brands may attract the attention of investors while many more will try to gain shelf space in store. Let’s all get ready to discover the newcomers and to chat about the evolution of niche when we meet at Esxence next month.