Small luxuries are definitely having their moment! If we were to keep the focus on beauty, I think it shifted from the lipstick index towards somewhat of a fragrance index, seeing how the market has been skyrocketing and as it can also fit into the small luxury ethos with the rise of travel sprays or discovery sets at smaller price points.
I think you're right in the minis and discovery size products for sure. But what was true re fragrance skyrocketing earlier in the 2020s is no longer true. Well, in the numbers at least. In 2022, Coty’s CEO was quoted talking about “the fragrance effect, or fragrance effect” to describe what he could see in consumer behaviour during economic slowdowns...no trading-down, but movement upmarket within Coty's portolio. But that prestige end of the fragrance category he's talking about right now has CAGR of only 1/1.5% (in the western markets at least), which is actually lower than total beauty. I love the mystery of this stuff!
You’re right, the explosive growth is behind us. The good news for the category is that fragrance still became the second‑largest prestige beauty category in the US, taking over skincare. It also remains the fastest‑growing segment in a tough environment. What’s interesting is this regression to the tail that ties back to the concept of small luxuries. On one end, travel sprays, body sprays and discovery sets are thriving as accessible luxuries. Then on the other side of the spectrum, niche fragrances continue to outperform prestige where customers might trade down from traditional luxury to splurge on a $300/$400 fragrance.
This made me think of the whole 'fridge cigarette' thing.
https://www.nytimes.com/2025/06/18/style/fridge-cigarette-diet-coke.html
Yes! That!
Small luxuries are definitely having their moment! If we were to keep the focus on beauty, I think it shifted from the lipstick index towards somewhat of a fragrance index, seeing how the market has been skyrocketing and as it can also fit into the small luxury ethos with the rise of travel sprays or discovery sets at smaller price points.
I think you're right in the minis and discovery size products for sure. But what was true re fragrance skyrocketing earlier in the 2020s is no longer true. Well, in the numbers at least. In 2022, Coty’s CEO was quoted talking about “the fragrance effect, or fragrance effect” to describe what he could see in consumer behaviour during economic slowdowns...no trading-down, but movement upmarket within Coty's portolio. But that prestige end of the fragrance category he's talking about right now has CAGR of only 1/1.5% (in the western markets at least), which is actually lower than total beauty. I love the mystery of this stuff!
You’re right, the explosive growth is behind us. The good news for the category is that fragrance still became the second‑largest prestige beauty category in the US, taking over skincare. It also remains the fastest‑growing segment in a tough environment. What’s interesting is this regression to the tail that ties back to the concept of small luxuries. On one end, travel sprays, body sprays and discovery sets are thriving as accessible luxuries. Then on the other side of the spectrum, niche fragrances continue to outperform prestige where customers might trade down from traditional luxury to splurge on a $300/$400 fragrance.
The Arggh Index! You nailed so many little indulgences; the Amazon impulse buys being chief among them.
I was feeling v 'seen' writing that partic sentence ha. Thank u Kelly x
Such an amazing read!! This is so interesting and is making me reconsider all of my latest Amazon Prime impulse purchases.
HA. You and me both. Thank you Matteo.
Loved this, Beth.
Thanks Angharad!