May 07 2021 Tendencies

The future of luxury fragrances

The WGSN Beauty Team, Market Intelligence, made available a summary of a study with the discussion on the future of luxury fragrances, post pandemic for its customers, which cosméticos br publishes here for the whole market.

“The perfume market will undergo major changes in the post-pandemic. Food-inspired fragrances, scents that work in the digital world and the appreciation of perfumers are redefining the future of luxury fragrances.

In the coming years, as the world strives to reestablish the pre-pandemic economic scenario, the perfume segment will face a global economy in crisis. In response to this, fragrances will take on a new role, now with more purpose than ever.

Prepared by Euromonitor, The Coronavirus Era: The New Normal report predicts that the global crisis that will affect all production sectors will be the worst since the 1930s. In 2020, international retail fell by 2%, with the worst results coming from specialist retailers and department stores.

As the public reevaluates its priorities in the face of so many limitations, the perfume market will have to respond to new values and consumption criteria, developing products that are perfectly aligned with these demands.

Fragrances must become more functional and purposeful, combining well-being, hygiene and emotion.

In a speech at the Fragrance Foundation awards in the UK, Judith Gross, global director of IFF, said: "Fragrances encourage a more positive way of living." Then she explained that during the crisis, IFF perfumers reintroduced perfumes on the market as an 'essential' item to ensure the mental and physical well-being of the consuming public.
IFF's Global Lifestyle Tracker 2020 revealed that 54% of people use perfume at home and not just to go out, which proves that scents are an increasingly important part of self-care rituals.

When people come out of social isolation, they will have long periods without much human contact. This will make them more interested in multisensory environments, especially the scented ones. Soon, fragrances will be part of all aspects of our lifes, whether it is stimulating our performance or humanizing technology.

Transcendental fragrances: perfuming the digital scene

From scent games with smells to virtual aromatherapy sessions, the digital world will use fragrances to establish a more emotional connection with technology. New methods of digital diffusion will allow the public to perfume their virtual environment, and brands should be aware of these innovations.

Euromonitor predicts that e-commerce will show a CAGR growth rate of 9% at the end of the period between 2020 and 2025. Since engagement with perfume brands and the sale of fragrances has migrated to the digital world, companies in the sector should update and dominate that space.

The issue is not just limited to online sales: Euromonitor found that 46% of the people interviewed value virtual experiences, in particular 24-hour service. This shows that brands must devise a strategy for digital experiences that offer their audience the opportunity to discover new fragrances online.

What's next? every day, biotechnology creates new ingredients grown in the laboratory from yeast, bacteria and plants, thus offering natural and highly sustainable alternatives.

White biotechnology - which uses enzymes and microorganisms, low temperatures and catalysts and non-polluting solvents - offers the fragrance market the chance to adopt sustainable and innovative practices.

The union of perfumery with technological innovation is an area with great growth potential. The use of familiar smells in robots and machines is a way of humanizing them, for example, and can facilitate their acceptance by society. At the last Web Tech Summit, Eric Yaun, Zoom's CEO, said he believed video calls would soon use artificial intelligence to create a multisensory environment. In it, Zoom users will be able to smell the coffee or the perfume of their interlocutor, or even the texture of their skin in virtual handshakes.

Enhanced perfumery

Perfumers will become a central part of the development of new products, creating fragrances that, in addition to having more personal stories and inspirations, will educate the consuming public. This new appreciation for the art of perfumery grows as the public understands its relationship with other disciplines.
Curiosity and interest in perfumery ingredients are growing, with courses, workshops and personalization becoming major sales drivers. In the wake of this trend, an interest in perfumers and their work is also born.

For perfume brands looking for new ways to engage their audience in the digital environment, using the figure of the perfumer to explain what was the inspiration behind a product can be a way to create a more humane relationship between customer and creator.

What's next? Perfumery has proved to be a great ally of education, as evidenced by schools that use smell in the learning process. Natalia Kucirkova, an education specialist working in Norway and the United Kingdom, has created olfactory books with 'scrape and smell' mechanisms that allow students to connect odors to new words. The use of smells as a learning tool will strengthen the connection of young consumers with fragrances, emphasizing their importance.

As the public understands the importance of fragrances, they will look for brands that show more of the production process of each perfume or even the story behind its creation, thus making more personalized choices.

The importance of scents in different areas of our lives, from education to our personal style, must be incorporated into history and brand communication.Novos ingredientes naturais

Biochemistry will change the way perfumery sees the use of natural and sustainable ingredients, and the 'natural' ingredients grown in the laboratory will give rise to new and innovative olfactory profiles. Reused ingredients also gain strength.

The demand for natural products will continue to grow, but with the awareness of ingredients there will also come the notion that assets grown in a natural way are not always the most sustainable option. The rampant exploitation of endangered plants and unstable supply chains are examples of the environmental damage caused by the cultivation of natural ingredients.

Throughout the 2020 lockdowns, the Revuze artificial intelligence search and data analysis platform recorded a 60% increase in mentions of sustainable, natural and organic perfumes.

What's next? every day, biotechnology creates new ingredients grown in the laboratory from yeast, bacteria and plants, thus offering natural and highly sustainable alternatives. White biotechnology - which uses enzymes and microorganisms, low temperatures and catalysts and non-polluting solvents - offers the fragrance market the chance to adopt sustainable and innovative practices.

Conducted by Firmenich, the Conscious Consumer study found that 71% of consumers consider natural or ecological products important or very important.
Recently, Firmenich opened its first biotechnology laboratory.
Located in Geneva, its goal is to develop ingredients that will reach the market quickly. These biotechnological advances will allow the company to expand its portfolio of renewable alternatives to natural ingredients, which already includes Clearwood, an ingredient with a scent of patchouli.

Designed scents

The demand for aromatizers in more elaborate environments will grow, a movement that accompanies the public's search for a point of confluence between design and the use of fragrances. In the future, architects and designers will see the aromatization of environments as a fundamental element for the creation of spaces that are closely suited to the profile of their occupants.

A Euromonitor survey shows that 64% of salaried people plan to continue working from home in the long term, with 70% adding that, after the pandemic, they would like to pay more attention to their quality of life. This homemade lifestyle will undergo changes, and perfumes and fragrances will play an important role in this process.

Already aware of the effect of fragrances on our emotions, the public expects companies to invest in products that create the perfect atmosphere for every moment. Thus, brands need to consider the idea of creating fragrances for different situations and rooms in the house.

With the public increasingly interested in decoration, interior design becomes another source of inspiration for luxury fragrances. This visual, cultural and historical inspiration creates an emotional environment that invites you to rest. In this way, brands not commonly associated with luxury perfumery gain the opportunity to use their design knowledge as inspiration for new fragrances.

What's next? Perfumery ingredients suppliers are launching products that, in addition to smelling good, create different atmospheres. Recently launched by Givaudan, Moodscentz is a platform that combines psychology and neuroscience to create fragrance ingredients that reflect different emotions.

In short, brands should invest in aromas that create, by themselves, a new olfactory environment. The boundaries between perfumery and room fragrances are disappearing, and brands must rethink their fragrance offer according to this trend. ”

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