Estée Lauder and Puig keep fragrance ambitions alive after failed merger

Three months after the collapsed merger between Estée Lauder Companies (ELC) and Spanish beauty group Puig, both companies are focusing on fragrance to boost their respective beauty portfolios. 

The merger was framed as a move to capitalize on the sustained global demand for luxury fragrances. Since the fall through, Estée Lauder has announced pushing ahead with its own new fragrance and expanding its presence in India, focusing on scent innovation.

For the first half of 2026, Puig has reported broad-based revenue growth and market share gains, with the company’s Fragrance and Fashion sector highlighted as a key growth driver.

The failed merger would have created a US$40 billion beauty powerhouse. It ultimately did not go through due to ELC’s price concerns and a €900 million (US$1.04 billion) payout for Puig-owned Charlotte Tilbury, which the beauty giant was not willing to absorb amid its ongoing restructuring scheme.

Puig’s perfume offsets war-blows

Puig reported H1 2026 net revenue of €2.35 billion (US$2.7 billion), representing 4.4% like-for-like growth, which the group says outperforms the wider premium beauty market. The company’s adjusted EBITDA rose 3.2% to €460 million (US$530.5 million), with the EBITDA margin improving to 19.5%. Adjusted net profit reached €260 million (US$299.9 million), lifting the net profit margin to 11.1%.

Puig says the growth was broad-based across all business segments. Fragrance and Fashion, which accounts for the bulk of the company’s revenue, rose 1.9%. Makeup grew 5.8%, driven primarily by the Charlotte Tilbury brand. Skin Care rose 1.2%, but the premium skin care category saw softer demand.

Carolina Herrera led growth across Puig’s prestige fragrance portfolio.“Carolina Herrera led growth in Prestige, while our Niche fragrance portfolio, led by Byredo, continued to deliver double-digit growth. Makeup maintained its excellent performance, led by Charlotte Tilbury, while within Skin Care, Uriage continued to strengthen its competitive position, in spite of weaker performance in Premium skin care,” says Jose Manuel Albesa, CEO of Puig.

Regionally, Asia-Pacific delivered the strongest performance for Puig with 20.9% growth, while North America and Europe also posted growth.

The group reported market share in travel retail, but noted that the segment has been impacted by the Iran War. The company estimated the conflict reduced H1 total sales by about €14 million (US$16.1 million) — a smaller impact than it had initially expected.

Puig confirmed its full-year guidance, and also announced upcoming product launches, including La Favorite for Jean Paul Gaultier, the brand’s first women’s fragrance in a decade, and 1 Million Black, the latest extension of Rabanne’s fragrance line.

“We will continue to invest in our brands, innovation, and execution while staying focused on disciplined growth and long-term value creation,” says Manuel Albesa.

ELC focuses on fragrance

ELC has been pursuing growth through targeted investments and product innovation since the merger talks ended.

ELC is expanding its focus on fragrance and creative innovation through its Beauty & You India program.In India, the company launched the fifth edition of its Beauty & You India program. The program is an entrepreneurship initiative designed to discover and support the next generation of Indian beauty entrepreneurs through funding, mentorship, and industry access.

This year’s Beauty & You India marks the program’s fifth year and comes amid a broader period of investment for ELC and other industry giants in India as the country increasingly solidifies itself as a leading beauty hub.

For example, ELC recently agreed to acquire Forest Essentials, India’s first luxury Ayurveda beauty brand, which focuses on traditional craftsmanship and science-based formulations.

The 2026 edition of Beauty & You India includes a new category for designers, visual artists, and creative talent working on packaging, retail, and experiences. The program also expanded its Breakthrough category through a partnership with ELC’s Fragrance Atelier in Paris, France. 

The program aims to recognize India’s fragrance craftsmanship and heritage while connecting local upcoming talent with ELC’s established ecosystem. Its latest run comes at a time when multiple beauty industry giants are doubling down on fragrance as a growth lever.

In fragrance, the Estée Lauder brand has announced the launch of Glimmer, a prestige scent created for “a new generation of consumers.”The fragrance is described as an amber floral with a gourmand twist, and was designed to capture moments of joy, hope, and connection.

Glimmer is the brand’s first foray into the gourmand scent category. Created by IFF perfumers Dominique Ropion, Anne Flipo, and Jean-Marc Chaillan, it is built around a rose macaron accord, raspberry mousse, and vanilla bean.

The beauty giant has used actress and singer Hailee Steinfeld as the face of the new scent. The sensorial fragrance experience is designed to inspire optimism and foster community. 

“Fragrance has an incredible ability to tell a story without words, evoke emotion, and create memories that stay with you,” says Steinfeld.