The price of premium perfumes recently shot up to levels never seen before for this luxury category. And curiously, this does not have to do so much with inflation, but rather with consumer behavior in times of stress and uncertainty… like the ones we are currently experiencing.
The average retail price of fragrances increased a 15% in 2020 compared to 2020, this is three times the average increase in the previous two years, which was only 5%.
“General inflation is not necessarily to blame in this case. We started seeing this surge of growth during the pandemic, when consumers were willing to switch to more premium fragrances,” said Larissa Jensen, vice president and beauty industry adviser at market research firm NPD.
“We theorized that people were looking to indulge in little luxuries during these times difficult. Smells allow us to escape, even momentarily, and experience a different emotion,” added Jensen.
It should be noted that shoppers in the United States are paying higher prices for all kinds of products, such as food , furniture, clothing, shoes and automobiles; and beauty and personal care products are no exception.
Fragrance sales soared during the pandemic, driven by strong demand for higher-priced eau de parfums. Such eau de parfums are perfumes with a higher percentage of fragrance oils that make the scent last longer once applied. Focusing only on perfumes – that is, excluding aromas for the home – last year’s sales increased by 52% compared to 2020.
Fragrances priced over $175 dollars more than doubled the amount of units sold in 2021, as reported on CNN.
As consumers buy more and more exclusive fragrances, companies are trying to further encourage purchases by offering incentives such as free samples and personalized interactions with consumers through virtual consultations.
Prestige perfumes tend to have a higher concentration of oils and use more expensive raw materials, so as demand increases, so do production costs.
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