Future of fragrance: How industry innovates for next-generation consumers
Key takeaways
- AI is transforming fragrance development by accelerating formulation and enabling real-time co-creation with perfumers.
- Regulatory and sustainability pressures are driving innovation, pushing brands toward reduced carbon footprints and safer, science-backed ingredients.
- Consumers increasingly expect fragrance to provide functional benefits beyond scent, shifting the industry toward performance-driven product design.

The fragrance industry is bridging the gap between ethical sourcing and the demands of a new generation of consumers. At the same time, industry experts highlight that, rather than hurdles, these pressures represent opportunities for innovation and collaboration that will help companies adapt to current and emerging olfactory trends.
Personal Care Insights looks at some of the latest fragrance innovations and sits down with experts from IFF Scent and Axe & Dove Men+Care to better understand the future of fragrance.
Innova Market Insights data suggests that global fragrance launches are increasing, with an average annual growth rate of 51% from 2021 to 2025. Moreover, the data indicates that, globally, consumers prefer light fragrances, purchases are mostly influenced by the brand, and sustainability is emerging as a key aspect of NPD development.
Jan Bechtel, senior VP of consumer fragrances for the scent business unit at IFF, tells us that the company addresses the growing demand for transparency by adhering to industry-wide disclosure and safety frameworks.
These include the International Fragrance Assessment (IFRA) Transparency List and the Research Institute for Fragrance Materials (RIFM) Safety Assessment program.
AI and the augmented perfumer
According to IFF Scent, AI will become “a core” component of fragrance development. AI platforms support the company’s perfumers through all stages, including ideation, formulation, and consumer insight translation, though the company touts that its “creative authorship remains human-led.”
“AI will increasingly reduce development time and complexity, improve hit rates, and help translate consumer language into formulation direction, while keeping perfumers firmly in control of creative intent,” Bechtel explains.
“At IFF, AI is an augmentation tool — its primary value lies in speed, scale, and integration of complexity, allowing creative teams to work faster and with greater precision by simultaneously integrating consumer insight, performance targets, regulatory constraints, and sustainability criteria.”
Additionally, Bechtel says IFF utilizes AI-driven tools such as ScentChat to bridge the gap between perfumers and consumers in real time. By employing semantic AI and natural language processing (NLP), the platform translates qualitative data and feedback into immediate formulation insights.
Furthermore, he reveals that the company’s Science of Performance and Science of Wellness platforms harness proprietary AI to target both functional performance and cognitive benefits. Also, it uses advanced AI modeling to help formulate the “next generation” of fragrance molecules.
Jan Bechtel, the senior vice president of consumer fragrances for the scent business unit at IFF.“Looking ahead, we believe personalization will move to ‘contextual design,’” says Bechtel. “Thanks to our vast consumer insights database and our proprietary AI tool, we already have the means to help consumers choose their fragrance based on a combination of olfactive preferences, emotional or functional expectations, performance, and social representations.”
Pressure drives innovation
The regulatory arena is another factor shaping the future of fragrance. However, Bechtel says, rather than reacting to policy changes, IFF’s strategy is to adopt an anticipatory approach to fragrance allergens and safety.
He states that the company leverages its leadership within the IFRA and RIFM frameworks to stay at the forefront of sustainability and industry science.
“Our environmental impact focus is on technology-driven solutions that preserve performance,” Betchel underscores. “For example, Envirocap, IFF’s latest delivery system technology, is European Chemicals Agency (ECHA)-compliant, biodegradable, and designed for fabric care applications without sacrificing sensory impact or performance.”
“More broadly, our sustainability ambition in scent design is centered on reducing environmental footprint across the fragrance lifecycle.”
At the same time, the company spotlights LMR (Laboratoire Monique Rémy), its internal natural ingredients division, which has established a long-term lead in traceability and environmental performance. Bechtel says a key breakthrough is the development of CO2 extraction technology, including Tonka Bean CO2, which delivers a negative 34% cradle-to-gate carbon footprint compared to traditional absolutes.
Furthermore, he notes that the LMR Conscious Collection has successfully phased out petrochemical solvents in favor of organic alternatives. Meanwhile, its citrus range has been re-engineered to reduce furocoumarins in anticipation of tightening global safety standards.
“Regulatory and environmental pressure is accelerating innovation, not limiting it, by pushing the industry toward more efficient, science-based, and futureproof fragrance solutions,” Bechtel emphasizes.
Shifting consumer preferences
Bechtel points out that, across regions and demographics, there are shifts he sees as shaping the fragrance market. These are the increasing expectations around fragrance performance, cross-cultural and regional scent influences, and consumer segmentations that are “more granular.”
He states that as “SmellMaxxing” drives Gen Z toward heavier and more frequent fragrance use, IFF is tapping its Science of Performance suite to redefine scent durability. The platform merges innovative fragrance engineering with delivery mechanisms that can impact the entire product lifecycle.
By mastering the variables of intensity and longevity, Bechtel says IFF empowers brand partners to resonate with a demographic that views fragrance as a high-performance tool for self-expression.
AI can help perfumers develop novel and functional fragrances.He also adds that IFF tracks global scent “crosspollination,” noting a rise in Middle Eastern-inspired richness across the US and Brazil. The company conducts annual surveys to gather the localized data needed to navigate these shifting preferences.
“The recent openings of our new creative centers in Dubai, Shanghai, and soon Mumbai, address that need for a ‘glocal’ approach, combining region-specific scent codes with globally scalable insights,” Bechtel highlights.
He adds that IFF’s 15-year Choice Model program shifts focus from demographics to values-based archetypes across 20 countries. By mapping consumers’ “deep motivations,” IFF identifies market white spaces.
Bechtel says this can replace “one-size-fits-all” products with culturally nuanced, performance-driven fragrance portfolios tailored to specific consumer values and usage demands.
The future of fragrance
As consumers seek novelty, Glossy recently identified solid perfumes as the next “body mist” trend. At the same time, Augusto Garzon, the global brand VP of Axe & Dove Men+Care, states that modern male consumers are pivoting toward sophisticated, multi-step routines that prioritize skin health and premium formats.
“In the US, Axe also has focused on premium fragrance deodorant collections,” Garzon tells us. “Our marketing approach leans into cultural relevance and humor, meeting younger men where they are and tapping into online trends, from wanting to #SmellLikeASnack to using fragrance as self‑expression.”
“Men are confidently exploring new formats, scents, textures, and a wider range of products. They care about fragrance as much as efficacy, and they want brands to show up authentically — through humor, self‑expression, and social values.”
Blueme recently unveiled results of a study linking olfactory health with cognitive aging, spotlighting the holistic health and longevity potential and scent and fragrance. According to Bechtel at IFF, innovations like this illustrate a key trend he says will shape the industry’s future: “fragrance with benefits.”
Bechtel states that fragrance is increasingly expected to do more than just “smell good.” Consumers are increasingly looking for personal care products that offer genuine emotional, cognitive, or functional payoffs. He emphasizes that this shift is moving the industry toward intentional, science-backed design.
“The IFF Science of Wellness program, which combines neuroscience, consumer perception data, and AI to guide benefit-oriented fragrance creation across categories, addresses that major trend,” Bechtel concludes.
“The future fragrance landscape will be shaped by science-backed performance and wellness claims, AI acceleration, and sustainability-led innovation, areas where IFF has deliberately built long-term capabilities.”










