Fragrance category booms as consumers shift to affordable indulgences, report finds
The fragrance market’s growth is driven by its unique position as an affordable luxury that fosters personal well-being, emotional connection, and social currency.
GLOBAL – According to a new research by Euromonitor International published in July 2025, the fragrance category is forecasted to drive 23% of the total growth in the beauty sector between 2024 and 2029, with an expected compound annual growth rate (CAGR) of 5.5% over this period.
This surge is largely attributed to a consumer trend labelled “Recession Glam,” where shoppers, amid economic uncertainty and inflation, are prioritizing affordable indulgences that still offer a sense of luxury and self-expression.
Fragrances have emerged as a preferred category for those seeking smaller, emotionally gratifying products without the high price tag of premium beauty products.
Key drivers fueling this boom include the rise in popularity of accessible fragrance options such as body sprays and mists, which have demonstrated significant revenue growth.
The trend of “scent-stacking,” or layering different fragrance products to create personalized scent experiences, is also contributing to increased demand.
Premium and luxury brands are adapting by developing fragrance-adjacent, value-driven products featuring exclusive scent profiles and upscale packaging designed to appeal to budget-conscious consumers.
Yang Hu, Asia Pacific insight manager for health and beauty at Euromonitor International, stated, “With inflation front of mind, consumers’ smarter spending is redefining the beauty playbook.”
“The definition of premium is changing – less about price, more about perceived value and purpose.”
Regionally, growth is strong across several markets. The Middle East and Africa, Southeast Asia, and Latin America are pivotal regions stimulating this expansion, with the Middle East in particular experiencing rapid growth fueled by rising consumer interest in affordable luxury grooming products.
Changing consumer values have reshaped definitions of what constitutes premium, with perceived value, emotional resonance, and purposeful indulgence now taking precedence over simply price.
Further supporting the category’s momentum is ongoing innovation, including the integration of AI-driven personalization technologies that enable tailored fragrance recommendations based on individual preferences and moods.
In addition, there is a broadening of scent profiles beyond traditional florals and fruits, with increasing consumer interest in gourmand, natural, and savory notes, making fragrance more experimental and appealing across demographics.
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