Fragrance index: Perfume sales rise as a signal of economic uncertainty

The Fragrance Index, the lesser -known sister of the Lipstick Index, clearly points up this year. In the first half of 2025, the sale of prestige perfumes increased by 6 percent to $ 3.9 billion. Why is that important? Strangely enough, the sales figures of perfumes are a striking economic indicator.

Small luxury as outlet valve

Parfum is seen by many consumers as an accessible form of indulgence. Where large editions such as a home, car or long journey are more difficult to realize, a scent or other care product remains within reach. This is how perfume is in line with the phenomenon of the “Lipstick Index”, a concept that emerged during earlier economic downs. It became visible that consumers more often bought lipstick at times when confidence in the economy decreased and greater purchases were not made.

The current rise in perfume sales can be seen in a similar way: it is a small luxury that holds itself, precisely when the financial space is under pressure. The need for self-care and small forms of luxury remains, even in periods in which consumers deal more critically with their budget.

Meaning for companies and investors

For producers of luxury products, perfume is becoming increasingly important as a stable pillar within their portfolio. Where more expensive categories such as fashion or accessories are more sensitive to economic fluctuations, perfumes remain relatively resilient. That makes the sector attractive for companies that want to spread their income.

This is also a relevant signal for investors. The so -called “Fragrance Index” indicates that this segment within the luxury sector is able to show growth in times of uncertainty. In a broader sense, this may indicate a society in which consumers are preparing for more difficult economic conditions, but still selectively spend on products that symbolize personal care and small luxury.