Fragrances are set to lead growth in the global beauty and personal care industry, driven by a rising consumer preference for affordable indulgence as economic pressures reshape spending habits, a global data analytics company said.
According to the latest World Market for Beauty and Personal Care report commissioned by Euromonitor International, fragrances will account for 23% of absolute growth in the $593bn global industry between 2024 and 2029, with a forecast compound annual growth rate of 5.5%.
This trend forms part of a broader shift towards cost-effective beauty routines under what Euromonitor describes as “Recession Glam”, a move by consumers towards lower-maintenance and more value-focused beauty choices.
“Shoppers are increasingly trading premium for mass brands, seeking products that deliver quality and value. This shift is evident in fragrances categories, which offer small indulgences at a lower cost,” Euromonitor said.
The rise of “scent-stacking”, which is layering scented products to create a longer-lasting effect, is also contributing to the growth of this category. Euromonitor said body mists, which are often used in layering, grew by 7.1% from 2023 to 2024.
As a result, premium and mass-market players are investing in fragrance-adjacent offerings that appeal to cost-conscious consumers. Euromonitor said brands are reacting by focusing on exclusive scent profiles and premium packaging, offering aspirational products at accessible price points.
“With inflation front of mind, consumers’ smarter spending is redefining the beauty playbook. The definition of premium is changing — it’s less about price, more about perceived value and purpose,” said Euromonitor’s Asia-Pacific insight manager for health and beauty, Yang Hu.
Emerging markets are at the forefront of the shift. The Middle East and Africa, alongside Southeast Asia and Latin America, are identified as important sources of growth for the global beauty industry.
In SA, the beauty and personal care market is projected to generate revenue of $4.5bn in 2025, according to market research firm Statista. The personal care segment is expected to lead with $2.4bn, while online sales are expected to contribute 14% of the total market revenue.
“In SA, there is a growing trend towards natural and organic beauty products, as consumers prioritise sustainability and eco-friendly options,” Statista said.
Dermocosmetics are gaining strong traction across the Middle East and Africa, fuelled by a growing preference among younger consumers for science-backed skincare. According to Euromonitor, products once seen as specialist or clinical are becoming part of everyday routines, particularly among Gen Z and millennials, who are driving this shift.
Countries such as the United Arab Emirates (UAE) and SA are experiencing widespread adoption, reflecting a broader trend in emerging markets where consumers are seeking effective, research-led solutions for their skin.
Clicks and Dis-Chem are the dominant players in SA’s masstige and mass market beauty segments, while retailers such as ARC, Woolworths and Edgars Beauty are targeting more premium and experiential offerings, according to a recent report by the Financial Mail.
Masstige products are considered luxury or premium products but their prices are between the mid-market and super premium level.
Woolworths, which has more than doubled its beauty business in the past four years, recently opened a stand-alone beauty store and is aiming to become a “Sephora-type” destination. Private-label ranges such WBeauty and local brands such as Skin Functional and Skoon are also performing strongly.
Entry-point brands and private-label fragrances are gaining traction, with companies such as TFG and Truworths expanding their in-house ranges to appeal to this market.
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