What is The Future of Niche Perfumery? 

What Is The Future of Niche Perfumery?
Will The Bubble Break or Transform?

The niche perfumery industry has experienced remarkable growth, with the global luxury perfume market valued at approximately USD 24.3 billion in 2024 and projected to reach USD 45.8 billion by 2033, growing at a compound annual growth rate (CAGR) of 7.7%.

This expansion is evident at events like Esxence 2025 in Milan, which celebrated its fifteenth edition with over 13,500 visitors and 384 brands from 38 countries, showcasing emerging trends in artistic perfumery.

However, this rapid growth has attracted significant private equity investments, raising concerns about the commercialization of artistic perfumery. Brands like BORNTOSTANDOUT, founded by South Korean Jun Lim, have secured investments from Touch Capital and L’Oréal’s corporate venture capital firm, Bold. Similarly, FUGAZZI, known for its playful scents and fun, approachable branding, has expanded its reach by partnering with EUROPERFUMES for U.S. distribution.

The fashion industry offers a cautionary tale. Between 2022 and 2025, several brands faced financial turmoil, with major U.S. retailers announcing 7,325 store closures in 2024—a 33% increase from 2023. The luxury retailer Matchesfashion also reported rising losses, from £5.9 million in 2020 to £70.9 million in 2023, ultimately leading to its closure in early 2024.

Despite these challenges, some niche perfumery brands continue to thrive, maintaining their independence and authenticity. Brands like Nasomatto and Orto Parisi have stayed true to their unapologetic communication and unconventional marketing practices, achieving consistent growth regardless of global high-end fragrance market fluctuations. Meanwhile, 27 87 and WA:IT Botanicamente focus on coherent branding and sustainability, emphasizing genuine connections with consumers—offering a glimpse of hope for the future of the niche fragrance industry.

As niche perfumery evolves, the industry faces a pivotal choice: pursue aggressive expansion, risking over-commercialization and market saturation, or prioritize sustainable growth and authenticity.

The strategic decisions made by both brands and retail partners will ultimately determine whether niche perfumery maintains its unique allure or follows the same pitfalls as the fashion sector.

Sources: globenewswire.com, businessinsider.com, voguebusiness.com