Three trends are expected to take off within the fragrance market this year: the rising popularity of niche fragrances, fragrance personalisation and novel retail experiences.
The trend predictions, made by Euromonitor International, are expected to impact both premium and mass brands across global markets.
Looking at the increasing popularity of niche scents, Nicholas Micallef, Beauty and Personal Care Analyst at Euromonitor International, said: “Consumers will continue to look for an effective identity and ability to relate emotionally and personally to a fragrance. In line with this, industry players are formulating fragrances with alternative ingredients to meet such demands. We have seen fragrances formulated with sea salt and saffron, for example, which are still alternative ingredients. Naturally, big players are trying to tap into this lucrative part of the business as evidenced by Estée Lauder's recent acquisition of Le Labo and Frédéric Malle.”
However, Micallef notes that as a result of heightened interest in niche offerings, competition will intensify. “In order to meet such a challenge, fragrance players need to sustain their niche intent and avoid commoditising the scent.”
Although personalisation has been a trend in fashion for years, with consumers being able to customise clothes and accessories with initials, this concept is only now beginning to trickle down to the beauty industry. Looking at the trend of personalisation, Micallef refers to the recent My Burberry launch by Burberry, which allows consumers to monogram bottles of the fragrance with their initials.
The third trend, novel retail formats, is expected to impact department stores and specialist retailers. Micallef explained this trend is likely to see these two retail channels increasingly compete to deliver novel retail experiences to enhance the consumer purchasing experience. He added: “For example, New York's Saks Fifth Avenue opened a fragrance library permitting consumers to learn about the heritage behind fragrances and make a more informed decision. Furthermore, curation will become more prevalent, where consumers will be able to make more direct purchases based on a product that has been specially selected for having targeted qualities. Chanel and Dior are best examples of this. Their standalone stores in London's Covent Garden house a product mix that displays key heritage fragrances, fashionable new items as well as best selling ones.”
