The cosmetics industry economy has fluctuated for years. The COVID-19 pandemic exposed these changes when social distancing mandates lifted. Like other industries, cosmetics businesses have found previously thriving business practices and product lines less profitable than expected.
Regardless of the reason, this has led cosmetics companies to reevaluate how their operations should be run and what products they should push out to keep their money flow going. In recent months, fragrances have experienced a surge in popularity.
This surge in fragrance popularity prompted multinational beauty company Coty, which owns global beauty brands CoverGirl and Rimmel, to consider selling those brands and focusing on fragrances.
Coty’s brands have mainly generated sales from drug store aisles. Recent surges in theft, online competition from cheaper alternatives, and the recent tariffs have prompted the company to reassess its operations. Coty sees their pivot towards fragrance as an opportunity to evolve their image to the same level as prestigious beauty brands like LVMH and Estée Lauder.
Coty may or may not follow through with these plans, but they correctly note that fragrances are booming. Grand View Research projects the global fragrance market will reach $74.76 billion by 2030.
Their reasoning is similar to trends found in the general cosmetics market. Younger people are being drawn in thanks to the rising movement of switching towards sustainable and eco-friendly ingredients. Additionally, social media trends and a growing unisex market have brought a wider range of new customers to the market than there were in previous years.
