Key Takeaways:
From the “lipstick effect” to the rise of under-eye patches as status symbols, no other industry has been able to capture macroeconomic cycles, cultural shifts, and consumer sentiments quite like beauty—but no category embodies this duality more powerfully than fragrance.
Fragrances continue to defy the tailwinds of the luxury slowdown. Euromonitor recently coined the term “recession glam” to describe a new consumer era where consumers are rethinking their spending habits, but still indulging in everyday, small luxuries.
“Beauty consumers have become more mindful of their spending, so they are prioritizing smarter purchases and choosing brands that offer quality without compromising their budget," said Amna Abbas, Senior Consultant at Euromonitor International. "With a heightened focus on value, this signals a shift toward more thoughtful consumerism during a time of restrained beauty spending."
As consumers trade their big-ticket spending for smaller, more meaningful yet aspirational tokens of joy, fragrances, owing to their deeply cultural and emotional power, are emerging as the most silent yet resilient luxury. According to Euromonitor, fragrance is forecasted to drive 23% of the beauty industry’s overall expansion, and growing at a CAGR of 5.5% between 2024 and 2029, this booming category is set to become beauty’s most powerful growth engine.
From scent-stacking rooted in Arabian traditions to the rise of body mists and niche formats, the category is witnessing unprecedented growth—becoming one of the few luxuries that consumers aren’t willing to cut back on.
The Rise of Scent Stacking and Its Cultural Significance
While in the past most people were loyal to a single signature scent, and consumers were hesitant to move away from their tried-and-tested favorites, today that world looks very different. In Arab culture, in particular, scent stacking, or the act of layering fragrances like bukhoor over oud and then finishing it off with another note or two, has long been embedded in daily routines and is considered almost a spiritual practice, woven into life with the same importance as bathing.
“Scent stacking involves layering different scented products, in our region," explained Abbas. "It can also involve the same or differing scents through body wash, lotion, body spray, deodorants, and perfume in a deliberate sequence to craft a distinctive, personalized, and long-lasting fragrance.”
However, what was once a deeply rooted tradition reserved for rituals and special occasions has transformed into an aspirational, viral practice adopted by people worldwide. From body washes and lotions to perfumes and body mists, consumers across the globe are blending their own scent cocktails, making the art of scent stacking both an outlet for self-expression and a culturally relevant statement.
“Similar to creating a cocktail or curating a flavor profile, this technique draws inspiration from Middle Eastern fragrance traditions of Arabian fragrances and perfume layering. It enables individuals to tailor their scent by combining harmonious or contrasting notes, enhancing both the uniqueness and the staying power of the overall aroma,” said Abbas.
Local and international fragrance brands in the region are taking advantage of the growing popularity of scent stacking and embedding the trend into their marketing and upselling initiatives.
“Brands like Bath & Body Works, The Body Shop, Yusuf Bhai, and Perfume.ae are interweaving scent stacking to blend international fragrances with global scents to offer fragrance ranges that fulfill consumer scent palates across varying generations and price points,” she added.
Why Even Mass Fragrances Feel Luxurious
While consumers are increasingly trading down from premium to mass brands and seeking out better value on their big-ticket items, fragrances remain the exception. And even at more affordable price points, perfumes continue to feel luxurious and indulgent.
“Fragrances are witnessing strong value growth driven by a deep cultural connection to perfumes, which play an important role in daily life and social rituals, based on scents and their quality (features like being long-lasting and kind to the skin) in addition to a range of brands at varying price points,” said Abbas.
This enables consumers to create scent shelves that are a balanced mix of fragrances, ranging from super luxurious to premium and mass, without compromising on a sense of luxury.
“Fragrances span across varying positioning and price points such as masstige and affordable luxury in addition to a range of luxury brands, so they are able to suit different consumer tastes, preferences, and needs—like daily wear vs. office wear and special occasions,” she added.
In a region that is proudly committed to fragrances owing to their deep-rooted cultural significance, Middle Eastern consumers are always looking for new fragrances to invest in. While the Middle Eastern fragrance consumer is quite discerning when it comes to finding a scent that they feel connected to, their high fragrance knowledge makes them open to exploring scents across price points, formats, and brands—from niche and artisanal to bespoke, mass, and ultra luxury.
“In countries like the Gulf Cooperation Council (GCC), which comprises countries like the United Arab Emirates (UAE) and Saudi Arabia, economic stability continues, allowing local consumers to invest in fragrances, both premium and mass, for different occasions. In addition, the booming tourism sector has sparked interest in traditional Arabian perfumes amongst visitors, across various price points,” said Abbas.
Why Are Emerging Markets Like MENA and India So Promising for Fragrances at the Moment?
The rise of e-commerce and social media trends has expanded the accessibility of fragrance brands, their positioning, and appeal across various consumer demographics and price points. This is particularly important for emerging markets, such as India, the Middle East, and Africa, where consumers are heavily influenced by what they see on social media.
“For instance, in the UAE, the Arabian fragrance player Ahmed Al Maghribi has done a phenomenal job of connecting with zillennials on social media platforms like TikTok and Instagram, and this has made an otherwise local, niche brand feel culturally and socially relevant,” said Abbas.
This trend is expected to continue for the next two to five years. With the desire to connect with younger consumers becoming a non-negotiable growth strategy, brands in the region are also experimenting with different formats to appeal to evolving tastes and price points.
“Luxury fragrance brands like Kayali have introduced mini sets on platforms such as Nykaa in India (Nysaa in the UAE) to cater to consumers who are seeking high-end, luxury products but prefer smaller, more cost-effective formats,” she added. This allows consumers to satisfy their desire for luxury fragrances without the high price tags, making premium brands feel more accessible and within reach.
The Role of Lower-Cost Formats Like Body Mists in Driving Growth
According to Euromonitor’s latest report, body mists grew by 7.1% from 2023 to 2024, driven by a range of socioeconomic factors. These include the increasing demand for affordable, everyday fragrances that offer a refreshing and lightweight alternative to traditional perfumes.
“Body mists are perceived as more versatile and accessible for daily use when compared to other fragrance formats, aligning well with the preferences of consumers who are seeking out budget-friendly yet high-quality products,” said Abbas.
Additionally, there is a newfound interest in and affinity for extensive bodycare routines, along with a growing awareness of the importance of personal hygiene and self-care.
“Greater emphasis is now being placed on self-care and bodycare, which is contributing to the increased demand for easy fragrance formats like body mists. This, combined with continuous promotional offers on lower-cost formats like body mists, has further fueled the appeal of these products across varying demographics,” she added.
Additionally, fragrance-adjacent offerings like body lotions, mini/travel packs, scented candles, and hair mists are becoming easy, entry-level, and affordable options that enable consumers to be more experimental and try out scents they would otherwise be afraid to commit to.
These fragrance-adjacent products allow consumers to experience the brand’s identity and quality at more affordable price points, which is extremely important in a market where price sensitivity is increasingly growing. This is becoming a popular strategy for brands that want their products to be accessible to consumers who would have otherwise shied away from investing in full-size formats.
How Younger Consumers Are Approaching Fragrances Compared to Older Generations
With younger consumers increasingly prioritizing personal care products as an outlet for self-expression, fragrances have become a key marker of luxury and lifestyle.
“This heightened frequency of usage and purchasing instances reflects a broader cultural shift towards personal grooming products and lifestyle products as a sign of an indulgent lifestyle,” said Abbas.
Younger consumers who are increasingly adopting omnichannel shopping habits and combining online availability with offline shopping are not only expanding the reach of fragrances but also enabling fragrances to become a category that caters to diverse consumer preferences and shopping behaviors.
