The fragrance industry is projected to experience significant growth by 2025, with the global market expected to reach a value of US$68.9 billion, according to the latest trend report from The Fragrance Shop and CPL Aromas. This growth is driven by the influence of TikTok, innovations in personalisation, and an increasing demand for sustainability.
Matcha, Rice Milk, and Sesame Set to Feature in 2025 Fragrance Launches. These ingredients, part of the emerging neo-gourmand trend, are set to reshape fragrance profiles, reflecting an evolving consumer appetite for more diverse and unique scent experiences. The global fragrance market, valued at $64.4 billion currently, is forecast to grow at a compound annual growth rate of 5% through 2032, reaching an estimated $85.7 billion.
Mass-market fragrances are expected to see a growth rate of 10.8% by the end of 2025, while premium fragrances are projected to rise by 12.2%. This reflects a growing consumer demand for both affordable options and high-end experiences. In the UK, the younger Gen Z demographic has led to a 70% year-on-year growth in fragrance sales at The Fragrance Shop, with 63% of sales still occurring in physical stores.
“Fragrance is no longer just a product – it’s a form of self-expression,” the report states. Gen Z and millennials are increasingly curating personal fragrance wardrobes tailored to their emotions, activities, and personal style, while older generations continue to embrace signature scents.
Platforms like TikTok play a crucial role in shaping fragrance trends. Viral hashtags such as #beastmode and #smellmaxing, which focus on intense and long-lasting fragrances, are giving way to more sophisticated conversations around scent layering and personalisation. TikTok’s influence has also translated into substantial sales spikes for fragrances like Valentino’s Born in Roma and Jean Paul Gaultier’s Le Male.
Matcha, Rice Milk, and Sesame Set to Feature in 2025 Fragrance Launches. These ingredients will be key to the rising trend of neo-gourmand fragrances. Additionally, floral scents with notes of rose and violet, and fruity scents featuring green banana and cherry, are expected to dominate the fragrance landscape in 2025.
The report highlights that artificial intelligence (AI) is revolutionising the way consumers discover and purchase fragrances. The Fragrance Shop’s “Every Human” platform, which uses AI to create bespoke scents, serves as a prime example of how AI is transforming the industry. By 2025, AI-powered e-commerce will provide hyper-personalised fragrance recommendations based on past purchases and social media behavior.
Matcha, Rice Milk, and Sesame Set to Feature in 2025 Fragrance Launches, marking the introduction of new, innovative ingredients that align with consumer desires for both novelty and sustainability. Physical stores remain central to fragrance retail, with 63% of consumers still preferring in-store purchases. However, retailers are adapting with immersive experiences such as augmented reality (AR) scent try-ons, multi-sensory installations, and curated pop-up events.
The report concludes that by 2025, the fragrance industry will continue to push boundaries with wearable scent technology and limited-edition collaborations with creators and celebrities. “Fragrance is entering a golden age where sustainability, technology, and personalisation will define the next chapter,” the report notes.
