Key market trends
Several new challenges characterized our market in 2025, following a very strong dynamic in 2024. These included the introduction of tariffs, some destocking induced by softness in demand, transitions between different distribution channels, new competition in certain ingredient categories, and more cautious spending on the part of consumers. Nevertheless, ever-increasing consumer demand for superior and sustainable products that deliver wellbeing supported a positive long-term outlook. This is based on three key emerging trends that shaped the industry in 2025:
A growing appetite for perfumery: According to our NewNextNow consumer study for 2026 and beyond, conducted in 21 countries, 70% of the population say they appreciate scents now more than before, with 73% saying that scents bring pleasure, signaling a strong appreciation for the wellbeing-related benefits of scent
The growth of online commerce: Digital tools, such as fragrance personalization and virtual beauty platforms, which make online shopping feel more personal, are also driving greater e-commerce sales and outpacing in-store growth
The acceleration of digitalization: The influence of social media platforms such as TikTok, combined with a rising awareness of niche brands, is fueling demand for fragrances and has resulted in increased consumption among younger generations, particularly Gen Z
For some of the highlights of our innovation activities in 2025, see Innovation in this section.
Performance
Perfumery & Beauty delivered organic sales growth of 3%. Fine Fragrances delivered high-single digit growth, while Consumer Fragrances and Ingredients delivered mid-single digit growth. Beauty & Care was impacted by weakness in sun filters. The Middle East was strong, Asia was good, and Europe solid, with softness in North America and Latin America.
The Adjusted EBITDA margin of 21.7% represents a good performance, particularly given the impact of the sun filters. Adjusted EBITDA was stable when excluding an adverse 3% currency effect.
In 2025, we continued our transformation despite a more challenging environment. Together with our customers, we are shaping a unique winning machine powered by creation, innovation, excellence, and the unwavering commitment of our teams.