Gen-Z’s preferences have shaped the beauty industry in recent years, from acne stickers to faux
freckles. But the fragrance category has especially felt Gen-Z’s influence.

As maturing Gen-Z customers began to discover and experiment with scent, fragrance has
emerged as a consistent bright spot forthe beauty industry since 2021. That growing interest
provided something of a cushion to the overall sector throughout the past year as it dealt with
slowing sales; a study from consulting firm McKinsey noted that while fragrance is the smallest
category in beauty, it was 2024’s fastest-growing.

But the heavy reliance on the category has tested its resiliency. Gen-Z is still buying fragrance,
but their preferences are shifting. Driven by PerfumeTok, today, these shoppers build up
perfume collections, chase trends (like gourmand scents) and layer multiple fragrances at
once,rather than sticking with a signature scent. But because they want to try so many scents,
they’re also embracing more low-cost ways to do so.

These behaviours are changing the category: In 2024, sales of prestige perfumes and colognes,
the largest segment in fragrance, grew 14 percent year-over-year. But more consumers went for
less expensive options when purchasing prestige — the largest fragrance segment — perfumes
and colognes, with growth among 18 to 24-year-old shoppers predominantly driven by mini or
travel sizes, according to marketresearch rm Circana. Meanwhile, the mass channel has
continued to face slowing sales between 2022 and 2024, growing just 2 percent year-over-year
by September 2024.