Fragrance has today transcended its traditional place as a luxury add-on to become a central cultural and commercial moment — and none more so than among the younger generation. For Coty Inc., Estée Lauder Companies and other leading beauty firms, the surge in demand for perfumes among Generation Z is reshaping strategy, product-mix and marketing in profound ways. To understand how and why this boom is unfolding, one must examine evolving behaviours, brand tactics and the shifting economics of scent.
A new generation, a new relationship with scent
Members of Generation Z (roughly born mid-1990s to early 2010s) are rewriting how fragrance fits into everyday life. Surveys show that roughly 80–83 per cent of Gen Z now wear fragrance three or more times a week — a usage frequency that outpaces older age cohorts. They are less inclined to stick with a single “signature” scent and more likely to curate a “fragrance wardrobe”, rotating scents by mood, occasion or aesthetic.
This behaviour links to a larger mindset: fragrance is no longer simply about attraction or status, but about self-expression, identity and wellness. Among young consumers, scent layering (wearing multiple perfumes at once) and mixing high/low formats have become normative. The term “smellmaxxing” has emerged to describe younger males in particular consciously enhancing their scent-profile as part of their personal styling.
Social-media platforms are critical drivers. Influencers on TikTok and Instagram — often with thousands or tens of thousands of followers — showcase fragrance formats, layering tips, scent descriptions and trending “dupes”. Many Gen Z consumers are willing to buy without physically smelling the product in store, relying instead on digital cues, peer reviews or viral posts.
Globally the phenomenon is particularly acute in markets such as Southeast Asia, where younger shoppers view fragrance as a cost-effective luxury: a relatively modest purchase that offers self-care, personal branding and a mood uplift. In short — fragrance has emerged as the accessible luxury choice for young people who might feel priced-out of handbags or bigger fashion splurges.
Why beauty benched on scent is winning
For beauty companies, Gen Z’s affinity for fragrance offers a compelling commercial opportunity – and one that is rapidly being seized. First, the sheer growth rates are impressive: the fragrance category has out-paced makeup and skincare in many markets in recent years. While makeup sales plateau, prestige fragrance revenue is growing in double-digits in multiple regions.
Second, fragrance offers higher margins and less price erosion than some other beauty segments, and the growing appetite among young people for affordable formats (mini sizes, body mists) enables brands to widen their entry-price points while retaining aspirational pull.
Third, the sentiment-driven nature of fragrance aligns with themes that resonate with younger consumers: self-expression, wellness, mood-boosting, sustainability and gender-neutral format. The ability of brands to tell a story around scent, to tie it to culture, to push formats tailored for layering or experimentation is exactly what Gen Z demands.
For companies like Coty and Estée Lauder, the upshot is that fragrance is becoming a primary sales driver rather than a peripheral line. Coty, for example, has signalled a pivot away from legacy makeup brands toward focusing heavily on fragrance as core business. Estée Lauder is investing in new concept boutiques, digital tools and global launches centred on perfume, explicitly citing younger-generation engagement as a driver.
The shift is strategic not just incremental. Building a strong fragrance business lets beauty firms lock in younger shoppers early, build brand loyalty through lower-entry items, and then upsell premium formats or extensions (e.g., rollerballs, travel-mists, hair-mists) over time. Moreover, fragrances are less channel-dependent: e-commerce, social-commerce and direct-to-consumer models are all effective in this space — again meeting Gen Z’s digital-native preferences.
Product formats, price tiers and global execution
How are companies translating this demand into strategy? A few elements stand out. One is format innovation: mini and travel sizes, body or hair mists, pen-sprays, layering sets and body-care + fragrance bundles. Gen Z is less willing to commit to a large bottle priced at premium, and more willing to experiment with lower-priced formats which allow multiple scents. Data shows mini sizes now account for a significant share of units sold in prestige fragrance.
Another element is pricing and accessibility. Young consumers in many markets view fragrance as “affordable luxury” — a purchase they can justify despite economic uncertainty. In Southeast Asia, for example, younger shoppers state that fragrance offers self-care, self-expression and value-for-money. Brands are responding by offering more approachable price points while still maintaining premium cues in packaging and marketing.
Customization and unisex positioning are additional pivots: Gen Z rejects rigid gendered fragrance categories, and brands are increasingly marketing unisex scents or gender-neutral ranges. The daily-mood concept means that a fragrance may be chosen not by gender or occasion, but by “how I want to feel today”. Layering, mixing, combining travel-mists with main scents becomes common.
On the global stage, companies are investing in local content, social-influencer partnerships, digital activation (especially on TikTok and Instagram), and physical retail experience tailored for younger consumers (pop-ups, sampling stations, scent walls). Engagement via AR/virtual scent tools or Mood-Match experiences also feature. For example, brands are using AI to interpret words like “bright”, “happy”, “adventurous” into fragrance-families, making the buying experience feel less intimidating.
The rollout is global: In markets beyond North America and Western Europe, younger consumers often have less entrenched fragrance-behaviour, presenting an opportunity. In regions such as India, China, Southeast Asia, the Middle East and Latin America, younger shoppers are trending toward fragrance use at higher incidence and perceive it as a self-care or style tool rather than an occasional luxury. These geographies become growth zones.
Impact on major players: Coty and Estée Lauder
Coty has taken a bold stance. The company is trimming or selling non-fragrance legacy brands (for example exploring divesting parts of its makeup business) in order to concentrate on fragrance. It has emphasised licensed brands (Calvin Klein, Hugo Boss) and its own prestige lines, while launching accessible formats and targeting younger users. Innovation such as body-mists, pen-sprays and themed collections are designed to appeal to the Gen Z behavioural patterns of layering and experimenting.
Estée Lauder likewise is doubling down on fragrance growth. With makeup hitting headwinds, fragrance became the upside driver in quarterly results. The company is opening new standalone fragrance boutiques, rolling out concept experiences and investing in digital tools (including AI-led scent matching). Their executive commentary emphasises that scent is now part of youth culture, not just fashion or grooming.
The interplay between accessible and prestige formats means that even younger consumers who may not yet spend on full-price luxury can enter the fragrance world via smaller sizes or value formats, while brands still benefit from building the premium narrative. For both companies the challenge will be sustaining margin while scaling formats that are lower-entry, and balancing prestige credibility with accessibility.
Cultural, behavioural and economic drivers
Why is this surge happening now? Several factors converge. One is the pandemic effect: younger consumers locked down in rooms, consuming more digital content, connecting via social media and seeking sensory engagement beyond screen time. Fragrance offered a tactile, intimate experience and a form of self-care when other rituals were disrupted.
Second, the economic climate: Many Gen Zers face affordability constraints and may delay big-ticket purchases (cars, homes, luxury handbags). Fragrance becomes a reachable luxury, offering prestige signals, self-treat value and a means of personal investment that sits within budget. Some analysts refer to this as a modern twist on the “lipstick effect” where consumers in tighter economies choose smaller luxury items rather than big-ticket ones.
Third, the digital-social engine: Social media has turned fragrance into content. Hashtags such as #PerfumeTok, #ScentOfTheDay, #FragWardrobe dominate. Influencers describe scent notes, layering tips, mood-themes and dupes. Younger males increasingly participate in this culture — something relatively less visible in older generations. TikTok in particular drives discovery, peer recommendations and viral hits.
Fourth, the globalization of youth taste: Gen Z is more fluid, channel-agnostic and global-minded. A scent that goes viral in one market can become trending in another within weeks. This accelerates diffusion of both formats and niche brands. Younger consumers are less tied to department-store launches, more open to indie brands, and more willing to experiment online.
Finally, identity and self-expression matter. Fragrance is no longer just an accessory — it is part of how young people articulate mood, identity, aesthetic and even values (such as sustainability). Many are influenced by clean-formulation, ethical sourcing, niche brands or limited editions. For example, younger consumers express desire for stories behind scent, for individuality, rather than buying the “same one as everyone else”.
Despite the strong momentum, brands face key strategic questions. As younger consumers pivot toward travel-sized, body-mist or layering formats, the average selling price may decrease. Brands must ensure that volume growth does not come at the expense of margin erosion. Accessible formats can cannibalise higher-price ones if not managed carefully.
Another risk concerns brand dilution. Luxury fragrance brands must protect prestige cues even while opening accessible tier formats; if entry-price items open the door to prestige lines too quickly, the aura may fade.
Distribution and supply chains in emerging markets bring complexity: ensuring authenticity, avoiding grey-market leakage, counterfeiting control, local sensor experience and regulatory compliance all matter. Younger consumers are more channel-agnostic but also more critical of brand ethics—sustainability, transparency, inclusivity are non-negotiable for many.
Finally, the competitive landscape is heating. Indie brands are thriving with authenticity, niche story-telling, micro-communities and social-media momentum. Large incumbents must move quickly to stay relevant to Gen Z while retaining operational discipline and innovation muscle.
In sum, the surge in fragrance purchases by Gen Z is not a fleeting fad but a structural shift: younger consumers using scent as a tool of identity, mood-management and social signalling, supported by digital discovery and value-driven formats. For major beauty players such as Coty and Estée Lauder the “why” is clear: fragrance offers growth, relevance and margin opportunity. The “how” is unfolding through new formats, global rollout, digital-first marketing and Gen Z-centric product design. As this generation ages and spending power grows, the fragrance category may yet emerge as the defining battleground for beauty brands seeking to win the loyalty of tomorrow’s consumers.
(Source:www.investing.com)
A new generation, a new relationship with scent
Members of Generation Z (roughly born mid-1990s to early 2010s) are rewriting how fragrance fits into everyday life. Surveys show that roughly 80–83 per cent of Gen Z now wear fragrance three or more times a week — a usage frequency that outpaces older age cohorts. They are less inclined to stick with a single “signature” scent and more likely to curate a “fragrance wardrobe”, rotating scents by mood, occasion or aesthetic.
This behaviour links to a larger mindset: fragrance is no longer simply about attraction or status, but about self-expression, identity and wellness. Among young consumers, scent layering (wearing multiple perfumes at once) and mixing high/low formats have become normative. The term “smellmaxxing” has emerged to describe younger males in particular consciously enhancing their scent-profile as part of their personal styling.
Social-media platforms are critical drivers. Influencers on TikTok and Instagram — often with thousands or tens of thousands of followers — showcase fragrance formats, layering tips, scent descriptions and trending “dupes”. Many Gen Z consumers are willing to buy without physically smelling the product in store, relying instead on digital cues, peer reviews or viral posts.
Globally the phenomenon is particularly acute in markets such as Southeast Asia, where younger shoppers view fragrance as a cost-effective luxury: a relatively modest purchase that offers self-care, personal branding and a mood uplift. In short — fragrance has emerged as the accessible luxury choice for young people who might feel priced-out of handbags or bigger fashion splurges.
Why beauty benched on scent is winning
For beauty companies, Gen Z’s affinity for fragrance offers a compelling commercial opportunity – and one that is rapidly being seized. First, the sheer growth rates are impressive: the fragrance category has out-paced makeup and skincare in many markets in recent years. While makeup sales plateau, prestige fragrance revenue is growing in double-digits in multiple regions.
Second, fragrance offers higher margins and less price erosion than some other beauty segments, and the growing appetite among young people for affordable formats (mini sizes, body mists) enables brands to widen their entry-price points while retaining aspirational pull.
Third, the sentiment-driven nature of fragrance aligns with themes that resonate with younger consumers: self-expression, wellness, mood-boosting, sustainability and gender-neutral format. The ability of brands to tell a story around scent, to tie it to culture, to push formats tailored for layering or experimentation is exactly what Gen Z demands.
For companies like Coty and Estée Lauder, the upshot is that fragrance is becoming a primary sales driver rather than a peripheral line. Coty, for example, has signalled a pivot away from legacy makeup brands toward focusing heavily on fragrance as core business. Estée Lauder is investing in new concept boutiques, digital tools and global launches centred on perfume, explicitly citing younger-generation engagement as a driver.
The shift is strategic not just incremental. Building a strong fragrance business lets beauty firms lock in younger shoppers early, build brand loyalty through lower-entry items, and then upsell premium formats or extensions (e.g., rollerballs, travel-mists, hair-mists) over time. Moreover, fragrances are less channel-dependent: e-commerce, social-commerce and direct-to-consumer models are all effective in this space — again meeting Gen Z’s digital-native preferences.
Product formats, price tiers and global execution
How are companies translating this demand into strategy? A few elements stand out. One is format innovation: mini and travel sizes, body or hair mists, pen-sprays, layering sets and body-care + fragrance bundles. Gen Z is less willing to commit to a large bottle priced at premium, and more willing to experiment with lower-priced formats which allow multiple scents. Data shows mini sizes now account for a significant share of units sold in prestige fragrance.
Another element is pricing and accessibility. Young consumers in many markets view fragrance as “affordable luxury” — a purchase they can justify despite economic uncertainty. In Southeast Asia, for example, younger shoppers state that fragrance offers self-care, self-expression and value-for-money. Brands are responding by offering more approachable price points while still maintaining premium cues in packaging and marketing.
Customization and unisex positioning are additional pivots: Gen Z rejects rigid gendered fragrance categories, and brands are increasingly marketing unisex scents or gender-neutral ranges. The daily-mood concept means that a fragrance may be chosen not by gender or occasion, but by “how I want to feel today”. Layering, mixing, combining travel-mists with main scents becomes common.
On the global stage, companies are investing in local content, social-influencer partnerships, digital activation (especially on TikTok and Instagram), and physical retail experience tailored for younger consumers (pop-ups, sampling stations, scent walls). Engagement via AR/virtual scent tools or Mood-Match experiences also feature. For example, brands are using AI to interpret words like “bright”, “happy”, “adventurous” into fragrance-families, making the buying experience feel less intimidating.
The rollout is global: In markets beyond North America and Western Europe, younger consumers often have less entrenched fragrance-behaviour, presenting an opportunity. In regions such as India, China, Southeast Asia, the Middle East and Latin America, younger shoppers are trending toward fragrance use at higher incidence and perceive it as a self-care or style tool rather than an occasional luxury. These geographies become growth zones.
Impact on major players: Coty and Estée Lauder
Coty has taken a bold stance. The company is trimming or selling non-fragrance legacy brands (for example exploring divesting parts of its makeup business) in order to concentrate on fragrance. It has emphasised licensed brands (Calvin Klein, Hugo Boss) and its own prestige lines, while launching accessible formats and targeting younger users. Innovation such as body-mists, pen-sprays and themed collections are designed to appeal to the Gen Z behavioural patterns of layering and experimenting.
Estée Lauder likewise is doubling down on fragrance growth. With makeup hitting headwinds, fragrance became the upside driver in quarterly results. The company is opening new standalone fragrance boutiques, rolling out concept experiences and investing in digital tools (including AI-led scent matching). Their executive commentary emphasises that scent is now part of youth culture, not just fashion or grooming.
The interplay between accessible and prestige formats means that even younger consumers who may not yet spend on full-price luxury can enter the fragrance world via smaller sizes or value formats, while brands still benefit from building the premium narrative. For both companies the challenge will be sustaining margin while scaling formats that are lower-entry, and balancing prestige credibility with accessibility.
Cultural, behavioural and economic drivers
Why is this surge happening now? Several factors converge. One is the pandemic effect: younger consumers locked down in rooms, consuming more digital content, connecting via social media and seeking sensory engagement beyond screen time. Fragrance offered a tactile, intimate experience and a form of self-care when other rituals were disrupted.
Second, the economic climate: Many Gen Zers face affordability constraints and may delay big-ticket purchases (cars, homes, luxury handbags). Fragrance becomes a reachable luxury, offering prestige signals, self-treat value and a means of personal investment that sits within budget. Some analysts refer to this as a modern twist on the “lipstick effect” where consumers in tighter economies choose smaller luxury items rather than big-ticket ones.
Third, the digital-social engine: Social media has turned fragrance into content. Hashtags such as #PerfumeTok, #ScentOfTheDay, #FragWardrobe dominate. Influencers describe scent notes, layering tips, mood-themes and dupes. Younger males increasingly participate in this culture — something relatively less visible in older generations. TikTok in particular drives discovery, peer recommendations and viral hits.
Fourth, the globalization of youth taste: Gen Z is more fluid, channel-agnostic and global-minded. A scent that goes viral in one market can become trending in another within weeks. This accelerates diffusion of both formats and niche brands. Younger consumers are less tied to department-store launches, more open to indie brands, and more willing to experiment online.
Finally, identity and self-expression matter. Fragrance is no longer just an accessory — it is part of how young people articulate mood, identity, aesthetic and even values (such as sustainability). Many are influenced by clean-formulation, ethical sourcing, niche brands or limited editions. For example, younger consumers express desire for stories behind scent, for individuality, rather than buying the “same one as everyone else”.
Despite the strong momentum, brands face key strategic questions. As younger consumers pivot toward travel-sized, body-mist or layering formats, the average selling price may decrease. Brands must ensure that volume growth does not come at the expense of margin erosion. Accessible formats can cannibalise higher-price ones if not managed carefully.
Another risk concerns brand dilution. Luxury fragrance brands must protect prestige cues even while opening accessible tier formats; if entry-price items open the door to prestige lines too quickly, the aura may fade.
Distribution and supply chains in emerging markets bring complexity: ensuring authenticity, avoiding grey-market leakage, counterfeiting control, local sensor experience and regulatory compliance all matter. Younger consumers are more channel-agnostic but also more critical of brand ethics—sustainability, transparency, inclusivity are non-negotiable for many.
Finally, the competitive landscape is heating. Indie brands are thriving with authenticity, niche story-telling, micro-communities and social-media momentum. Large incumbents must move quickly to stay relevant to Gen Z while retaining operational discipline and innovation muscle.
In sum, the surge in fragrance purchases by Gen Z is not a fleeting fad but a structural shift: younger consumers using scent as a tool of identity, mood-management and social signalling, supported by digital discovery and value-driven formats. For major beauty players such as Coty and Estée Lauder the “why” is clear: fragrance offers growth, relevance and margin opportunity. The “how” is unfolding through new formats, global rollout, digital-first marketing and Gen Z-centric product design. As this generation ages and spending power grows, the fragrance category may yet emerge as the defining battleground for beauty brands seeking to win the loyalty of tomorrow’s consumers.
(Source:www.investing.com)