2025 China Perfume and Fragrance Industry White Paper

**Analysis of the Core Content of the “2025 China Perfume and Fragrance Industry White Paper”**

### **I. Market Status: Global Growth Engine, Local Resilience Benchmark**

1. **Scale and Growth**

- In 2024, China’s fragrance market reached **24.9 billion yuan**, and is projected to exceed **33.9 billion yuan** by 2028, with a compound annual growth rate of **8%**, significantly outpacing the global market’s moderate growth rate of 4%–6%.

— Fragrance and perfume are the only offline beauty category that has maintained steady positive growth over the past three years. By 2025, its market share will rise to **6.4%**, and consumption potential in second-tier and lower-tier cities will accelerate, becoming a key driver of market expansion.

2. **Upgrading Consumption Concepts**

- Perfume has evolved from a “nice-to-have” to a “must-have,” and consumer decision-making has shifted from being function-oriented to being emotionally connected. **“Value-driven, resonance-based consumption”** has become the core driving force.

- Demand is surging in scenarios such as socializing, healing, and self-expression. Perfumes and fragrances, with their emotional value, are driving explosive growth in niche segments—including home fragrances and automotive fragrances.

### **II. Consumer Behavior: Personalization, Scenario-Based Approaches, and the Rise of Blue-Ocean Segments**

1. **Personalized Needs**

- **Over 40% of consumers** choose perfumes based on the occasion or their mood; among advanced users, this proportion rises to 60%. Additionally, 30% select fragrances according to their outfit or outdoor setting.

- Searches for niche fragrance notes (such as leather and aquatic notes) have grown by over 85%, while spicy and gourmand fragrances have seen growth rates of nearly 45%. Experienced consumers are shifting their preferences from single floral scents to more diverse styles.

2. **Scenario-based Consumption**

- The volume of reads for fragrance content targeting scenarios such as tourism, commuting, and outdoor activities increased by 97%, 46%, and 30% respectively, ushering in a new era of scenario-based fragrance decision-making.

- The rise of functional fragrances: Agarwood incense helps promote sleep and calm the mind, while woody fragrance notes enhance concentration—fragrances are becoming tools for self-healing.

3. **Blue Ocean Population**

- The proportion of male consumers rose from 37.1% in 2023 to 40.1% in 2024. The “pragmatic scent-seeking men” group prioritizes fresh and long-lasting fragrances, with a 53% usage rate in outdoor settings.

- Among Generation Z (ages 18-25) in second-tier and lower-tier cities, the proportion of people who use fragrances is 18.7%, significantly higher than in first-tier cities (12.9%). They tend to prefer affordable domestic brands and co-branded fragrances that incorporate traditional Chinese cultural themes.

### **III. Product Innovation: Oriental Fragrance, AI Technology, and Boundaryless Forms**

1. **Revival of Eastern Fragrance**

- Consumers show a strong preference for oriental botanical fragrances such as magnolia and osmanthus, and brands leverage shared memories to create emotional connections.

- National brands such as **Beastie** collaborate with intangible cultural heritage techniques, while **Timenotes** develops products based on the Twenty-Four Solar Terms, deeply integrating Eastern philosophy with lifestyle.

2. **AI Technology Empowerment**

- DSM-Firmenich is integrating AI into the fragrance formulation process, shortening development cycles and enhancing precision. **Tom Ford** has developed this year’s award-winning fragrance using Givaudan’s Carto AI system, demonstrating AI’s potential in the industrialization of high-end perfumes.

3. **Formlessness**

- Lightweight products such as scented wipes and fabric sprays break through usage limitations, while natural-scented deodorants and fragranced personal care products enable “passive fragrance application.”

- Car fragrances and home cleaning scents create new olfactory experiences, fostering male consumer habits.

### **IV. Marketing Trends: Cultural Storytelling, Technology Empowerment, and Omnichannel Operations**

1. **Cultural Symbol Marketing**

- International brands such as **Versace and Chopard** are combining Indian jasmine and rose with concepts like “love luck” and “peach blossom energy,” swiftly responding to the trend of a 165% surge in searches for metaphysical-related content.

- Nationally innovative brands build differentiated advantages through systematic cultural expression—for example, the collaboration between **Melt Season** and the Meili Snow Mountain Hotel, which creates a medium for “spiritual migration.”

2. **Technology-empowered experience**

- The intelligent fragrance-selection service provided by **PerfumeBox** enables efficient matching of user needs. The game **“Memory Guardian”** transforms scent preferences into personal stories, creating an innovative “technology + humanities” model.

- Offline spaces build differentiated barriers through “scene-based storytelling + multisensory experiences + cross-industry collaborations,” such as the **Jo Malone Moganshan Fragrance Journey**, which leverages city-level traffic.

3. **Omni-channel Business Strategy**

- Online channels leverage their strengths in technology integration and content resonance, with the number of users interested in Xiaohongshu’s bookish atmosphere exceeding 170 million. In the fragrance category, readership grew by 34% year-on-year.

- Offline, value is centered around immersive experiences; the B2C channel accounts for 75% of offline sales. International brands are establishing a strong presence in boutiques, while local brands are penetrating lower-tier markets.

### **V. Future Outlook: Balancing Globalization and Localization, Sustaining Competitive Edge Through Sustainability and Differentiation**

1. **Balancing Globalization and Localization**

- International brands need to build emotional connections through super-localization strategies (such as **Parfums de Marly** partnering with the Shanghai International Flower Expo), while local brands must leverage cultural narratives to enhance their international competitiveness.

2. **Sustainability Trend**

- Consumer awareness of eco-friendly packaging has increased by 36%. Brands are adopting biodegradable materials and streamlined designs, such as **BYREDO’s minimalist bottle design** and **LE LABO’s recyclable packaging**.

- Natural incense has surpassed 40 million views, with its usage linked to healing and wellness scenarios, driving the brand to position itself in the sustainable growth sector.

3. **Core of Differentiated Competition**

- Future winners must possess **six core competencies**: universal emotional value, heritage craftsmanship, pursuit of premium ingredients, storytelling prowess, iconic fragrance profiles, and dynamic evolutionary capability—forming a sustainable, compounding engine.