As the holiday season approaches, fragrance continues to shine as the fastest-growing category in the beauty industry, according to Circana’s annual 2024 U.S. Holiday Purchase Intentions Report. The report highlights that new fragrance launches and gift sets are taking center stage this year, further solidifying the importance of the fragrance category during the holiday season.
Fragrance remains a key player in both prestige and mass markets, with the fourth quarter representing more than 40% of annual sales within each channel. While sales in the mass-market fragrance segment have grown at a slower pace due to a decline in unit sales, the prestige fragrance market has experienced a steady upward trajectory.
According to the Circana report, fragrance is among the top items on consumer shopping lists, with 18% of shoppers planning to gift perfume or cologne this holiday season. This figure has risen significantly compared to previous years, signaling an increased demand for fragrance-related gifts.
Younger generations, particularly Gen Z and Gen Alpha, are driving this growth. The influence of platforms like #PerfumeTok has played a substantial role in elevating fragrance interest among these consumers. More affordable fragrance options, including body sprays and mini-sized perfumes, are expected to be top sellers this season, alongside higher-end luxury fragrances and stronger concentrations that continue to gain popularity.
With fragrances becoming a staple on holiday wish lists and driving increased sales, the category is poised to perform well this season, showing no signs of slowing down. The growing interest across various consumer demographics, especially among younger shoppers, highlights fragrance as an enduring and expanding part of the holiday shopping experience.
