By the numbers, fragrance was the fastest-growing category in both mass and prestige and became the second-largest category in prestige after makeup last year, accounting for 28% of sales, according to Circana. Mintel reports that 25% of 18- to 44-year-old consumers in the United States paid over $60 on their last fragrance purchase, and 65% of fragrance users wear perfume or cologne every day.

Carson Kitzmiller, principal analyst, beauty and personal care at Mintel, says, “Nearly half of all U.S. adults apply fragrance daily, indicating a stable demand across various pricing tiers. This consistent application suggests stable usage and purchasing patterns, promising a positive outlook for the fragrance market.”

Deal activity in the category has increased steadily over the past few years, and investors are keeping close tabs on buzzy emerging brands to try to pick the winners. Thomas Buisson, managing director of Fable Investments, the corporate venture arm of Natura &Co, which has invested in fragrance brands Bibbi Parfum and Perfumer H, says, “Everyone’s talking about fragrance, and it seems to have incredible resilience. The customer has moved from going to main brands towards niche. This has fueled an appetite for people to launch fragrance brands.”

A word of caution to entrepreneurs interested in launching the next Byredo: Developing great scents isn’t enough. Buisson argues they have to live within an immersive world. “Fragrance is a product that cannot stand on its feet if it doesn’t have this universe that you want to be part of,” he says. “With fragrance, you really need to make people dream and that’s not that easy.”

To identify the niche brands making people dream, we talked to industry insiders about those they’re most excited about.

Ulta Beauty is set to expand to Mexico this year, but fragrance brands have already sniffed out a multibillion-dollar opportunity in the country, with big names Le Labo, Kilian and Creed opening stores in Mexico over last couple of years. Local brands and entrepreneurs are helping put Mexico on the scent map, too.

“Die Hot With Vengeance” author and co-host of the fragrance podcast “Smell Ya Later” Sable Yong highlights Arquiste as an IYKYK fragrance brand popular among the creative crowd. Born and raised in Mexico City, Carlos Huber launched the brand in 2011 and collaborated with Givaudan perfumers Rodrigo Flores-Roux and Yann Vasnier on its $205 scents rooted in historical references.

Yong says, “Carlos Huber’s take on fragrance involves a history-rich scent narrative that gives you a novel dose of intellect while indulging in beautifully complex, elevated fragrances.”

Arquiste’s L’Or de Louis Eau de Parfum inspired by Venice’s 18th-century ridottos or secret apartments won Indie Fragrance of the Year at the Fragrance Foundation’s 2024 awards, beating out Thom Browne, Byredo and Kilian. Huber has collaborated with St. Regis, J.Crew and Trudon, was involved in crafting sunscreen brand Vacation’s scent and served as an advisor for Bianco Profumo.

Flores-Roux has lent his perfume chops to other Mexican heritage brands, including Xinú and House of Bō. Xinú was founded by married couple Veronica Peña and Ignacio Cadena with designer Héctor Esrawe in 2016. Its six perfumes celebrate the American continent’s aromatic botany. Mezcal-themed Aguamadera Xinū, for instance, is based on the scent of agave. The brand has four stores in Mexico in Mexico City, San Miguel de Allende and Mérida.

Kudzi Chikumbi, a content creator known as Sir Candle Man, is drawn to the conscious luxury approach of House of Bō, which founder Bernardo Möller, who hails from Mexico, but lives in Miami, launched in 2021. Neiman Marcus snapped up the brand three months after its launch. Chikumbi calls the stone caps on the brand’s bottles TikTok gold.

“While many luxury brands focus on excess, House of Bō encourages customers to slow down and truly appreciate craftsmanship and ingredients,” he says. “They’re creating genuine interest in their products similar to early D.S. & Durga hits.”

Moving East, a number of indie brands out of Asia are going viral on TikTok and garnering interest among investors. Korea’s Borntostandout launched in April 2022 and leaped from $300,000 in sales its first year to $27 million in 2024, according to reporting by BeautyMatter. Last month, the brand received series A investment from Touch Capital, with participation from BOLD, the VC arm of L’Oréal. L’Oréal also invested in Chinese perfume brands To Summer and Documents through its Chinese investment firm, Shanghai Meicifang Investment Co., in 2024 and 2022, respectively.

Estée Lauder and Japanese beauty conglomerate Kosé have eyes on the continent as well, with the former investing in Chinese fragrance brand Melt Season in 2023 and the latter acquiring Thai fragrance brand Pañpuri in December. Ministry of Scent founder Antonia Kohl cites J-Scent from Japan, One Day out of Hong Kong, Maison de L’Asie from Singapore and Vietnamese brand, D’Annam, as other favorites from Asia.

Redoux co-founder and host of the Scent Social Club Asia Grant is a fan of D’Annam. She lauds founder Nick Hoang for being an expert storyteller and connecting his cultural heritage to fragrances. Priced at $160 for 1.7-oz. sizes, the brand’s scents include White Rice, Monsoon Tea and Pho Breakfast.

Borntostandout is another, well, standout to Grant. “Both D’Annam and Borntostandout offer fresh perspectives, originating from Vietnam and South Korea, and create fragrances that stand apart from traditional Western or European houses,” she says. “This uniqueness, paired with East Asia’s influence as a consumer market, makes them incredibly valuable.”

Gen Z consumers have been at the heart of fragrance’s explosion. In 2023, the percentage of gen Z consumers using fragrance jumped five points to 83%, per Circana. Mintel data shows 77% of gen Z and 79% of millennial fragrance users over the past year wear perfume or cologne every day—and gen alpha isn’t far behind. In 2024, Mintel’s research finds 55% of teens and preteens aged 12 to 17 years old used fragrances in the past year.

A Sephora top seller, Phlur is plugged in to the gen Z zeitgeist. Its extension from eau de parfum to lighter and cheaper body and hair mists has been critical to it gen Z dominance. At Sephora, its mists include Vanilla Smoke, Dragon Fruit, Moonstone, Heavy Cream, Vanilla Skin, Caramel Skin, Coconut Skin, Mango Mood and Amber Haze. They’re priced at $38 for 8-oz. sizes and $25 for 3-oz. sizes versus $99. for 1.7-oz. sizes for eau de parfums.

Eric Korman, now CEO of manufacturer The Goodkind Co., launched Phlur with his wife Cynthia in 2015. Incubator and investor The Center acquired it in 2021 and influencer Chriselle Lim was bought in as founder. The Center and Lim have worked to transform it into a trend-driven powerhouse. Late last year, WWD estimated that Phlur was heading to $100 million in 2024 sales.

Incubator Beach House Group has entered the fragrance fray with gen Z-oriented brand Noyz. Last year, it premiered across Ulta Beauty stores nationwide with $85 eau de parfums before expanding to $42 solid perfumes this year. Added to indie fragrance boutique Arielle Shoshana’s assortment this year, where its perfumes Sel à Vie and Milky Way are popular, French brand Fascent speaks to gen Z’s layering habit with 30-ml. sprays priced at $78.

Arabelle Sicardi, beauty writer and founder of event series Perfumed Pages, describes Matiere Premiere as a “new brand with old industry roots” and shares the fragrance community on the Chinese app RedNote is obsessed with it. The brand raised raised 1.3 million euros from 10 international investors in 2020 and last year received a minority investment from Kering Beauté to aid with retail expansion, including opening branded stores across France, Germany, China, United Kingdom, Middle Eastern countries and U.S.

Yong says, “The brand has a no-frills concept and executes it in a uniquely memorable way. It already has a reputation for making ‘beast mode’ scents amongst fragrance heads, but the minimal branding and elevated scent profiles also have high appeal with the fashion crowd.”

Buisson singles out BDK Parfums as a French fragrance brand to watch. Founder David Benedek, who established the brand nine years ago in Paris, envisions it as an olfactory library, and its packaging resembles book covers that convey the inspirations behind each creation. BDK has bootstrapped its way into 53 countries worldwide and is in over 500 stores such as Le Bon Marché, Harrods and Neiman Marcus. Most of its fragrances are over $200. Bestseller Gris Chanel is $320.

Started as a “vibes page” on Instagram in 2016, DedCool landed at Sephora in 2022 and raised $1.75 million from Sandbridge Capital in 2023. Priced at $90 for 1.7-oz. sizes, its bestselling eau de parfums include Mochi Milk, Xtra Milk and 01 Taunt, but its assortment has diversified formats that extend to poop drops, laundry detergent and room sprays. Yong says, “Being indie is what makes the brand cool, but they’re so fun that I can’t imagine they’ll stay indie for long.”

The Maker is a recent Sephora entrant Chikumbi is excited about. Launched by Fresh founders Lev Glazman and Alina Roytberg in 2021, the brand is backed by VC firm True Beauty Ventures and generating $12 million in sales last year, according to a figure in WWD. “When I look at current trends in the market—all those clean visuals, generic gourmands and basic skin scents—The Maker goes completely against that grain with a maximalist approach,” says Chikumbi. “They push boundaries in their visuals and storytelling, which makes people pay special attention.” Other Sephora fragrance indies to watch are Chris Collins, Nette and Brown Girl Jane.

Emily Bond, managing partner at Lotus Bridge Strategic Partners and former GM at Givaudan and Newell Brands, mentions Fulton & Roark as an indie fragrance brand on the rise. Its Calle Ocho scent has sold out twice in 2025, and the brand is on track to double its e-commerce revenue this year.

Sicardi thinks Liis, a brand founded by Alissa Sullivan and Leslie Hendin in 2020, has what it takes to make it big. “I can see it being worn by Rhode and Rare Beauty superfans, and the scents are cool and wearable,” she says. On Instagram, Grant refers to the brand as the “quiet younger sister of the Loewe, Byredo, Le Labo woman.” Liis informed Entrepreneur that its fragrance Choux Choux, priced at $175 for a 50-ml. size, was on track to hit $1 million in sales last year and that it was growing 60% to 70% annually.

Inspired by and headquartered in Los Angeles, Perfumehead launched at Violet Grey in 2022 and has since expanded to Bergdorf Goodman, Maxfield, Just One Eye, Holt Renfrew, The Conservatory and Nordstrom. Its extrait de parfum varieties, including bestsellers Canadian Tuxedo, Cosmic Cowboy and La La Love, are priced at $250 for 30-ml. sizes.

Perfumehead secured an undisclosed amount of funding from angel investors following its launch at Violet Grey and they invested again to finance its Nordstrom launch. Now, the brand is ready to fundraise yet again. Founder Daniel Giles says, “The right partner understands Perfumehead can be a global brand in the luxury fragrance space.”