"Fragrance represents 2.5 billion in revenue for the group," stated Stéphane de La Faverie, CEO of The Estée Lauder Companies, during the inauguration of its brand new Fragrance Atelier in Paris, France.
The group, which achieved total sales of USD 14.3 billion (down 8%) in its staggered 2024/2025 fiscal year, intends to accelerate its growth in the perfume category. "Over the past five years, perfume has grown by 10% per year" within the group, Mr. de La Faverie emphasized.
Accelerating launches
The reason for this investment in Paris — the amount of which was not disclosed — is “to accelerate the fragrance category,” which is experiencing global growth, the group’s CEO said. The Estée Lauder Companies’ portfolio spans brands such as Balmain, Tom Ford, Éditions de Parfums Frédéric Malle, Kilian Paris, Le Labo, and its own Estée Lauder perfumes.
The Fragrance Atelier is located within the Maison des Parfums on Rue Volney in Paris, a five-story building that houses the Estée Lauder group’s fragrance, creation, and innovation teams in a 2,000 m² space. While each brand maintains its own identity, bringing the fragrance development teams together under one roof will enable them to share access to cutting-edge technologies, exclusive ingredients, and scientific expertise.
The group’s goal is to speed up development, ramp up launches, and keep innovating. “We’re going to triple the number of new launches in less than a year,” said Stéphane de La Faverie.
Since Covid, he observed, “people are craving new experiences — and that includes beauty.”
According to the executive, the new workshop would “reduce fragrance development time by 30 to 50%.”
William Lauder, 65, the founder’s grandson and Chairman of the Board, was also present at the inauguration. “In the world of consumer goods, there’s never a moment to rest on your laurels,” he remarked.
Tech and data
To respond more swiftly to changing consumer trends, The Estée Lauder Companies has brought together top-tier expertise and advanced technologies in its new center, blending them with the artistry of perfume creation.
“The Fragrance Atelier is an exciting new model for creation — a space that harnesses creativity and science to shape the future of fragrance,” said René Lammers, The Estée Lauder Companies’ Chief Research & Innovation Officer. “This hub brings together experts from across our fragrance brands and partners in an environment purpose-built for experimentation. Together, they will accelerate the journey from inspiration to formulation and ultimately to the final consumer experience.”
In concrete terms, the creation of new scents draws on olfactory modeling and neuroscience, with artificial intelligence as a key ally. To keep pace, research is tied to real-time monitoring of global regulations and patents.
The new innovation center features dedicated spaces where perfumers and brand teams can co-create and innovate together. Nearby laboratories are fitted with advanced equipment — from CO₂ supercritical extraction and, GCMS molecule analysis systems to AI-driven sillage measurement tools — all designed to study fragrance structure and longevity at the molecular level.
The center also offers exclusive consumer behavior modeling capabilities. Using neuroscience, these tools translate sensory responses into insights that guide the creation of fragrances designed to stir emotion and inspire desire.
The new Paris Fragrance Atelier adds to Estée Lauder’s global network of innovation centers, which already includes sites in New York, Minnesota, Shanghai, Belgium, and Toronto.
