Fine fragrance evolution: Consumers crave encompassing experiences to engage all senses

02 Jul 2024 --- The fine fragrance market is no longer only about scent. Personal Care Insights talks to International Flavors & Fragrances about how the fragrance industry has moved beyond a focus on scent and is shifting toward mood-based innovations. We also look at consumer data showing a willingness to splurge on luxury perfumes. Recent research indicates that shoppers are still buying luxury fragrances amid persistent inflationary pressures. 

Innova Market Insights data suggests that the launches of fine fragrances are increasing globally, featuring a +23% year-over-year growth from April 2022 to March 2024. In that period, Fragrances for Women was the top subcategory in fragrance NPD, accounting for 54% of the launches. 

International Flavors & Fragrances (IFF) tells us that creating all-encompassing experiences is critical as consumers seek fragrances that “bring together all the senses” — olfactory, visual and sound — on a single platform.

Amy Rueckl, North America Fine Fragrance marketing director at IFF, says consumer expectations have “evolved significantly.” Consumers no longer desire just pleasant-smelling fragrance products. There is growing demand for premium offerings that emphasize quality, with a shift toward premiumization evident worldwide, spanning various demographics, generations and product categories.

“Sixty-two percent of consumers in France, the US and China, for example, would prefer to buy one quality fragrance rather than multiple cheaper ones,” Rueckl finds.

Fragrance data
Research from Adobe Analytics shows the percentage of expensive fragrance products increased by 19.4% in April and May versus last January and by 9.9% year-over-year in the US. The “trading up” trend of online fragrance bolstered the sales increase, with daily sales rising by 27% year-over-year and by 53% from April to May.

Fine fragrances are carving out a space in the beauty industry as a luxury consumers are willing to spend for. Bain & Company and the Italian luxury goods manufacturers’ industry association, Altagamma, report that the luxury beauty sector continues to see “strong momentum” due to the “small-luxuries effect,” a term used to describe aspirational consumers shifting their spending toward more accessible luxury categories as a means of self-treatment.

Wanting fuller experiences
IFF says quality in fine fragrances is defined by performance, quality of ingredients, emotional benefits and creativity of the olfactive signature.

IFF says its perfumers are more creative than the competitors.Consumers demand to know more about their fragrances. IFF says it is seeing increasing interest in telling the story of the creation process from the fields to the labs to the perfumers’ offices.

“These behind-the-scenes stories help support the passionate experts behind new and classic creations and show the beauty in the artistry and inspiration of each customized creation we make. Highlighting our perfumers, lab technicians, agronomists and collaborative partners through visual storytelling allows consumers to feel closer than ever to their fragrances,” asserts Rueckl.

Regarding trending scents, Rueckl says the industry is seeing gourmands on the rise with pistachio and vanilla alongside inspiration from nostalgic and futuristic flavors.

“We are also seeing iconic florals like rose, peony, violet and orange flowers regaining center stage globally as consumers seek that close-to-nature feeling and premiumization from the florals.”

Shifting landscape
The previously trendy “signature scent” has lost its momentum. Consumers now have a “fragrance wardrobe” made up of multiple scents for different moods and occasions.

“This leads to a wider interest in mood-boosting scents, where consumers can choose their fragrance based on their specific emotional needs each day. At IFF, our Science of Wellness program integrates over 40 years of pioneering research, establishing it as a cornerstone in developing these fragrances,” highlights Rueckl.

Consumers are also increasingly turning to online shopping and seeking information on social media — such as browsing the TikTok hashtag #perfumetok—to engage more with fragrances than they ever have. This trend spotlights numerous brands and has supported the reintroduction of some classics to the market to capture the attention of younger generations.

Past and future innovations
IFF tells us it is working on a new range of LMR Conscious Naturals — including its Lavandin Enfleurage 2.0, a blackcurrant bud CO2 extract — which uses sustainable extraction methods and allows its perfumers to create “mindful fragrances.”

Emphasizing the importance of socially and environmentally responsible fragrances, Innova Market Insights indicates that the top positionings of global fragrance launches are Male (41%), Ethical Animal/Fish & Bird (16%) and Ethical Packaging (14%).Consumers for fine fragrances are looking for more in the product than just the scent.

According to the market researchers’ ingredient reports, from April 2023 to March 2024, linalool (57%) was the leading selected ingredient among global fragrance launches.

“Our recent partnership with sound lab Ircam Amplify completes our Science of Wellness approach, enhancing our understanding of fragrances’ emotional and sensory impact,” says Rueckl.

“Through this partnership, we bridge the gap between scents and emotions, using sound to evoke the emotional essence of fragrances, a very important addition to the customer experience on digital platforms and e-commerce websites.”

Research from IFF demonstrates that integrating a sound mirroring the olfactive experience can increase consumers’ purchasing intent by over 50% on perfume e-commerce websites.

Competitive creativity
Rueckl says IFF stands apart from competitors thanks to perfumer creativity. “IFF perfumers have created some of the most iconic perfumes, from leading global blockbusters to niche brands.”

“[We] have access to extraordinary molecules and LMR natural ingredients. For example, our Citrus Premium Collection brings a new light to citrus notes, while Ambernat is a new 100% biodegradable and renewable amber molecule.”

IFF recently helped implement creative tools for augmented perfumery in the Charlotte Tilbury fragrance collection. It says this helped target specific emotional territories based on over 40 years of science-based understanding of the interaction between scents and emotions while leveraging AI and neuroscience insights.

By Sabine Waldeck

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