Gen Z, it seems, loves their fragrances. Sales are surging so much among the younger set that economists are likening it to a new version of the "lipstick effect," reports Reuters. The theory is that in tough economic times, consumers will opt for the least expensive luxury item they can find. Sales of these smaller goods tend to rise when the economy falters, and these days it seems that perfumes and fragrances appear to be supplanting lipstick as a gauge.
Big players such as Estee Lauder, L'Oreal, and Coty have been reporting strong sales—particularly among young consumers—and plan to double down on their offerings. Coty, for example, is banking on strong demand for its Calvin Klein and Hugo Boss lines, with fragrances now making up three-quarters of its total sales. The company is even considering selling off other brands like CoverGirl and Rimmel to focus more on perfumes.
Meanwhile, Estee Lauder reported that growth in its fragrance business offset weaker makeup sales, with the segment rising 14% last quarter. L'Oreal recently closed a $4.7 billion deal to acquire fragrance brands from Kering, securing long-term licenses for names like Gucci. The key metric at play: About 38% of all fragrance spending between January and July came from households with a Gen Z member, per Circana data.
story continues below
The Guardian previously reported that the boom in fragrances among younger consumers seemed to take off in earnest during the pandemic. "It was expected the fragrance market would fall, but it boomed," says perfume blogger Suzy Nightingale. "People discovered they could punctuate their day with moments of difference—travel with their noses, revel in nostalgia, or excite their senses with novelty." The piece digs into the phenomenon and its jargon: "frag heads," "smellmaxxing," and "scent layering."
,
uBlock 
,
and
Ghostery 
)
