Consumers are attracted to luxury fragrances for many of the same reasons as luxury fashion: quality, craftsmanship, and the emotional and aspirational elements for which these types of brands are known. Designer and artisanal fragrance brands account for over 80% of the sales revenue within the U.S. prestige fragrance market and boasted double-digit growth rates in 2023, according to Circana data. Similarly, 7-in-10 fragrance consumers are willing to pay more for higher concentrations, which are stronger, longer lasting, and higher priced.

— Read more in Why EDPs and Parfums Are Outperforming the Rest of the Fragrance Market at Beauty Packaging.

Fragrance houses and designer brands are going back to the drawing board to rework their marketing and communication approaches in order to adapt to this radically different consumer.

“This new generation learns visually. They aren’t readers. Their search engine is YouTube, not Google. They use TikTok, Instagram and YouTube to learn new skills. Print ads won’t reach them. Facebook and Google won’t reach them. Fragrance and fashion brands need to focus on sustainability and create inspirational rather than aspirational marketing,” said Cole.

— Read more in Gen Zs love expensive perfume. The curious phenomenon of a small luxury in bad times at National Post.

Coty CEO Sue Nabi told Yahoo that Gen Z are using fragrances on their clothes and outfits, in addition to their skin. “They spray much more, and it’s shortening the life span of the usage of the product,” she said. “That’s what explains this boom, both in volume and in value behind this market.” Coty, which raised its annual sales outlook last week, is launching more fragrances to meet demand. In April, it announced what it calls “the first globally distributed fragrance manufactured using alcohol from 100% recycled carbon emissions.”

—Read more in ‘A category our consumers are asking for’: Why more brands are getting into fragrances at ModernRetail.