The fragrance market in China is experiencing a remarkable surge, driven by what a recent report from Eternal Beauty and Deloitte refers to as the “dopamine-driven beauty boom.” As this market evolves, it’s projected to grow at an annual rate of 8%, nearing a staggering 34 billion renminbi (around $4.7 billion) by 2028. According to Crystal Wang, a partner at Deloitte China, fragrances have transcended mere luxury items to become essential tools for self-expression and emotional management. The report describes this phenomenon as “small luxury moments” that offer a “temporary escape” from daily life, reflecting a broader consumer shift towards prioritizing emotional value in their purchases.
Wang emphasizes that emotional resonance is becoming a pivotal driver in China’s consumer goods landscape. This shift is notable not just among women, who remain the primary fragrance consumers, particularly those under 30 from first- and second-tier cities, but also among men. Historically overlooked in this domain, male consumers are emerging as a dynamic force in the fragrance market. Unlike their female counterparts, men exhibit a preference for long-lasting scents with fresh and neutral profiles, creating exciting opportunities for brands willing to cater to this evolving demographic. This transformation challenges previous assumptions about male consumers, signaling their readiness to engage with fragrance in more nuanced ways.
Another important demographic gaining attention is Gen Z shoppers, particularly those from second-tier cities. These “dream scent seekers” are characterized by their desire for fragrances that reflect “Chinese style and sentimental narratives.” Wang describes these individuals as a paradox; they strive for a balance between relaxation and ambition, and they show a preference for products that tell a story rather than flaunting luxury logos. This generational shift indicates that consumers are prioritizing emotional connections over mere brand prestige, revealing a desire for authenticity in the products they choose.
To thrive in this rapidly changing environment, fragrance brands must align themselves with the emotional and experiential expectations of today’s consumers. The report suggests that companies should be responsive to social media trends that shape consumer behavior, such as urban exploration, outdoor activities, and fan events like music festivals. Wang notes that even the most cautious consumers can be deeply emotional, hinting at the potential for brands like Aesop and Documents to resonate with targeted narratives. Aesop appeals to career-driven women who seek the grounding scent of sandalwood, while Documents captures cultural confidence by integrating elements of traditional Chinese fragrance.
Moreover, the fragrance sector stands out as a resilient performer within the beauty industry. Over the past three years, while segments like skincare and color cosmetics have faltered, fragrance has consistently shown positive growth. This resilience is significant when considering that the overall beauty market experienced a decline of 5.9% in the first three quarters of 2025, juxtaposed by a 3.6% growth in fragrance sales. The report underscores the importance of retail data, revealing that iconic brands such as Chanel, Dior, Jo Malone, YSL Beauty, and Diptyque emerged as frontrunners in sales during this period.
On the digital front, established international brands maintain a robust presence, particularly on platforms like Tmall, JD.com, and Douyin. These legacy luxury houses have effectively leveraged their iconic status by creating synergies between fragrance and make-up, driving consumer traffic through bundled products. This strategic approach not only solidifies their market position but also exemplifies how understanding consumer preferences and emotional drives can lead to sustained success in the evolving fragrance landscape in China.