Who would’ve thought that the most frugal, sustainability-focused consumer demographic would also be the most luxury fragrance-obsessed? Fine fragrance sales increased again in the first quarter of 2024 with Gen Z at the helm. Coty’s prestige fragrance revenue, for instance, grew by 25 percent in its first fiscal quarter this year and that, unlike some of said fragrances, is nothing to sneeze at. Sales of fine fragrances at Givaudan, which makes scents for Dior, Diptyque, and Tom Ford, were up 14 percent in 2023.
Fragrance influencers popularized the idea of a “fragrance wardrobe” or a “fragrance reserve” i.e., a rotating array of scents that young folks can mix and match to express themselves, day-to-day. This has positive implications for the fragrance industry, but it’s not about status.
Does it seem like Gen Z’s proclivity for fine fragrances is evidence of a recovered economy? Then let me hastily reassure you, it’s not. Deloitte reports that three in 10 Gen Z and millennials don’t feel financially secure and around six in 10 live paycheck to paycheck. Then factor in that much of Gen Z still lives with their parents and they still have economic difficulties so, their propensity for luxury fragrances becomes nothing short of mystifying.
Let’s demystify it. We’ll break down the Gen Z mentality spearheading the fine fragrance boom, their favorite scents––and how they differ from those of their predecessors, and how retailers can capitalize on Gen Z’s vanilla-scented Achilles Heel.
How Gen Z Justifies Fine Fragrance Purchases
At first glance, next gen’s propensity for bougie, status symbol scents seems incredibly off-brand. They won’t shell out $70 for a decent pair of Levi’s, but they’ll gleefully hand over $250 of allowance money for an extra-large bottle of Dior Sauvage. To make it make sense, one needs to scratch beneath the surface and recall the factors that inspire Gen Z to spend, and product discovery social media, available data for independent research, expression of individuality, sustainability, value, mobile payment options and trusted influencer recommendations lead the charge.
Here’s where fragrance influencers like Mona Kattan Elamin and the Christian internet sensation Jeremy Fragrance come in. Fragrance influencers don’t just connect with their young fans, they make esoteric industry terms like “sillage” ––the scent a perfume leaves when you walk by––accessible to the masses. Gen Z loves to learn and the potential for independent product research and discovery are some of the main tenets of their purchasing ethos. As influencers democratize access to insider fragrance industry knowledge, young Gen Zers gravitate towards their content which makes them feel in the know and deliciously grown-up.
Millennials and those that came before them often opt for a signature scent or two and double down on those. However, fragrance influencers popularized the idea of a “fragrance wardrobe” or a “fragrance reserve” i.e., a rotating array of scents that young folks can mix and match to express themselves, day-to-day. This has positive implications for the fragrance industry, but it’s not about status. If Gen Z’s affinity for smellmaxxing has anything to do with scent as a status symbol, said status comes from their own knowledge and how they use it to express their… you guessed it: Individuality.
Gen Z’s Favorite Scents
Statista reports that in 2024 the leading fragrance brand among Gen Z consumers in the United States was Bath & Body Works, as stated by nearly 30 percent of participants. Sol de Janeiro came in second, closely followed by Victoria’s Secret’s array of fragrances. Gen Z’s favorite fragrance notes obviously vary significantly by the individual wearer, but good old-fashioned vanilla takes the cake. This explains why Bath and Body Works has a gender-neutral collection led by vanilla fragrances, which are widely considered to be Gen Z’s fav scent since the 2022 survey by the Gen Z media company, Kyra.
Other next gen favored fragrance notes are also, interestingly, largely classical and food based, including peach, amber and toffee––highlighting their affinity for timeless and comforting elements that lead the senses back to a simpler time.
It’s also important to note that it’s not just about the smell itself. Simple packaging with easy-to-read ingredients and a strong mission statement, whether it be mental health awareness or removing trash from the oceans, is a priority. They aren’t just buying from the fragrance megaliths, either. Small-batch fragrances from independent makers with a compelling story showcases their individuality better than most fragrance powerhouses––particularly when said scents are unisex and label-free. The more the focus is on the fragrance notes themselves, rather than the brand or advertising, the better.
Understanding the Spend: Fragrance as an Experience
So, then, how do we make sense of Gen Z’s affinity for fine fragrances in the wake of their outspoken frugality? More than 70 percent of Gen Z folks say they value experiences over things. Perhaps the answer to our question lies in viewing fragrance, not as a physical item one brings home from a store, but as an intangible experience for the people who wear it and those they come across. An experience that leaves behind a sillage that speaks to the evolving sensory truth of the wearer, their identity, mood, aesthetic, and history.
In a world oversaturated by digital demands, fragrance brings young people back to their senses––an olfactory form of yoga, as grounding as a brisk walk in the rain. Gen Z loves fragrance for the same reasons they love Polaroid cameras and flip-phones: It makes them feel more human for a fleeting moment, centered in a shared experience. And, in this world of mounting anxiety and digital chaos, who doesn’t want that?