Fueled by impressive results throughout the initial nine months of 2025 (+18%), the fragrance firm is determined to leverage its successes by depending on the aptitude of its perfumers, with the goal of delivering both novelty and superior quality to patrons, as well as fortifying each market sector.
As an element of its 2025-2030 strategic plan revealed this past September, Givaudan endeavors to present a high-caliber response to the robust need for perfumes. While the specialized fragrance arena is thriving and seeking olfactory audacity, prominent firms shouldn’t be underestimated: they consistently revitalize their mainstays, therefore enhancing unique collections. This dynamic action stems primarily from the emotional, rather than solely utilitarian, essence of perfume.
Serving as an entryway to opulence and dreams, fragrances have been the most vibrant sphere of beauty for a number of years. “Our obligation as a fragrance creator is to furnish consumers with both excellence and pioneering concepts, ensuring fragrances persist as an alluring item,” clarifies Xavier Renard, Global Head of Fine Fragrance at Givaudan.
Maintaining a Lead in Global Market Transformations
Following a five-year period of substantial growth featuring double-digit escalations propelled by the industry’s premiumization, the fragrance sector is currently displaying indications of equilibrium. “In the U.S., as an illustration, the premium division’s expansion attained 6% in monetary worth, and 2 to 3% in quantity during the initial half of 2025”, states Renard.
However, the mass market expanded by 17% within the same timeframe. Even though High Perfumery largely remains unaffected by this pattern, a slight transition from Prestige to the broader market is arising, motivated by diminishing buying power.
The Prestige grouping also faces competition from brands originating in the Middle East, which are experiencing rapid advancement on a worldwide scale. They extend reasonably priced creations fashioned by prominent perfumers. This blueprint appeals to today’s knowledgeable consumers, who pursue superior products.
Emerging Horizons
Throughout the preceding five years, the fragrance domain has broadened into fresh landscapes, notably within Asia, alongside novel distribution avenues like e-commerce platforms and social media, thereby connecting with an emerging consumer demographic. “The year 2024 witnessed a 22% surge in perfume acquisitions among Generation Z and Generation Alpha,” observes Renard. This demographic is highly appealing for brands. “Consequently, the industry must educate young consumers by fashioning exceptional, unforgettable, diffusive, and enduring olfactory imprints,” emphasizes the executive.
The perfume market is projected to gain 350 million additional consumers in the subsequent three years, rendering it utterly vital to comprehend their attributes, anticipations, and origins (Asia, the US, Latin America, the Middle East…). This tactic is already in motion, as evidenced during the What Is Love event in 2023, wherein Givaudan deciphered the requirements of Generation Z.
Perfumers Take a Key Position in Creative Strategy
Within an environment undergoing rapid change, Givaudan’s strategy is centered on bolstering the Prestige category, as well as High Perfumery, Fine Beauty, Specialty Retail, and direct-selling, which is considerably widespread in Latin America.
Currently, Givaudan possesses between 22 and 25% of market share within each sector. This well-rounded allocation shields the fragrance company from geopolitical and economic instabilities. “Irrespective of the sector, our methodology should be anchored in quality, consistency between the brand and the perfumer, and fulfilling commitments made to consumers. Alignment is paramount if we desire creations to achieve success on par with Guidance by Amouage, conceived by Quentin Bisch. This underscores why it’s critical to provide our perfumers with a creative sanctuary,” articulates Renard.
To deliver a valuable solution to the market’s varied desires, Givaudan fundamentally depends on its Fine Fragrance perfumer team. The global consortium of 42 perfumers was newly supplemented by Fanny Bal, Margherita Carini and Alexis Grugeon. Approximately 20 of these perfumers are situated in Paris.
According to Givaudan, talent variation, notably regarding expertise and olfactory signature, represents the strength of a team, as it furnishes brands with value and aids in innovation and the quest for the unconventional, thereby preventing the phenomenon of wearout. The company intends to cultivate this significant asset with fresh recruits, as well as by fostering the young talent educated at its perfumery institution.
Besides its perfumers, “without whom nothing would materialize,” as Renard frequently emphasizes, Givaudan’s inventiveness manifestly rests on its palette of ingredients, the caliber of its raw materials, and also novel synthetic molecules that adhere to regulations, which unlock new olfactory prospects. “These components augment perfumers’ innovation aptitude within an intensely saturated market, enabling the creation of tomorrow’s outstanding perfumes,” concludes the executive.
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The principal trends and most recent advancements in fragrance development will be exhibited and deliberated at the forthcoming Fragrance Innovation Summit on November 26 in Paris. Detailed schedule: www.fragranceinnovation.com/en/ |