In an era of economic mindfulness Euromonitor International’s data [1] highlight a global beauty consumer pivot towards accessible indulgence. According to the market research firm, shoppers are increasingly seeking products that deliver quality and value. In their quest for cost-effective beauty solutions, they are massively trading premium for mass brands, actively reshaping a global beauty market valued at USD 593 billion in 2024.

“With inflation front of mind, consumers’ smarter spending is redefining the beauty playbook. The definition of premium is changing – less about price, more about perceived value and purpose,” said Yang Hu, Asia Pacific insight manager for health and beauty at Euromonitor International.

This shift is evident in lip products and fragrances categories, which offer small indulgences at a lower cost.

The rise of scent-stacking

According to Euromonitor, fragrances are set to contribute the largest portion of industry growth for the coming years, accounting for 23% of global growth between 2024 and 2029 (31% in the Asia-Pacific region), with a forecast CAGR [2] of 5.5%.

Fragrances have become an accessible form of small luxury for consumers. As “Recession Glam” is taking hold, they have emerged as the new expression of the ‘lipstick effect’.

The surge of scent-stacking - layering scented products to create a lasting fragrance - allows consumers to reimagine fragrance indulgence through affordable products.

Consequently, body mists grew by 7.1% from 2023-2024 globally.

Premium and luxury players are entering the space with fragrance-adjacent offerings that serve as a gateway for budget-conscious consumers, while brands seek to stand out from the mass by investing in exclusive scent profiles and premium packaging.

Seeking emotional wellness through scent

In the Asia-Pacific region, fragrances have become an accessible form of luxury for shoppers who seek to indulgence themselves. Moreover, beauty consumers also increasingly perceive scents as a source of emotional wellness.

South Korea and Japan are leading this trend in the region. In 2024, the fragrances category in both markets recorded 9% growth respectively, while overall beauty markets of the two countries experienced moderate growth by 1-2%. China also saw notable growth for premium fragrances, with a CAGR of 9.2%.

Singapore and Vietnam saw the strongest growth in demand for fragrances in the Southeast Asia region. Mass fragrances in Singapore saw an 11% growth from 2023 to 2024, the highest growth in over the last decade. Over the same period, fragrance sales grew by 31% in Vietnam, driven by the entrance of global brands of fragrances entering the country’s retail scene.

Budget retailers target beauty reinvention

In skincare, the quest for cost-effective products has heightened the desire for ingredient-driven solutions. To meet the demand of price-weary consumers retailers are responding with the development of private label products.

US discount retailers began expanding beauty brand offerings, thus servicing value-conscious shoppers.

In parallel, consumers in the U.S. are increasingly visiting warehouse clubs (or wholesale clubs) for their bulk-buying value benefits, providing visibility into dupe products, allowing shoppers to discover similar scents and ingredients that spark the same sense of joy as the original products. Between 2019 to 2024, beauty and personal care sales in warehouse clubs grew by 117%, while variety stores recorded a 69% increase.

In Asia-Pacific, e-commerce has continued to surge, increasing its share from 19% in 2019 to 30% in 2024. However, consumers’ pronounced shift toward more budget-friendly alternatives drives renewed momentum for certain offline channel sales.

Thus, Euromonitor concludes, channels that offer affordable prices and active promotions saw significant growth around the world.