Luxury group Puig has recently invested in Chinese fragrance brand Scent Library, indicating the growing interest of beauty conglomerates in the rapidly expanding perfume market in China. Although the financial details of the deal have not been disclosed, Puig’s partnership with Scent Library highlights their desire to participate in the development of the Chinese perfume market alongside a local company. Scent Library, founded in 2009 in Beijing, currently operates 80 experiential stores in China, offering a range of personal and home fragrances as well as body care products with a modern twist on traditional Chinese medicine. This investment from Puig will enable Scent Library to enhance its product development capabilities and establish a global supply chain.

While the fragrance market in China is still relatively small compared to the skincare and make-up sectors, it has been experiencing significant growth, largely driven by Millennials. According to iResearch, China currently accounts for only 2.5% of the global fragrance market. However, since 2017, the Chinese fragrance market has been expanding at an impressive average annual rate of over 25%. Projections suggest that by 2030, China will become the second-largest market for perfumery worldwide.

Puig, which experienced a 24% decline in sales in 2020 due to the Covid-19 pandemic, possesses renowned perfume brands such as Jean Paul Gaultier, Penhaligon’s, and L’Artisan Parfumeur in its portfolio. The investment in Scent Library demonstrates Puig’s commitment to capitalizing on new growth opportunities, particularly in emerging markets like China. Leveraging its established presence and expertise in the luxury fragrance industry, Puig aims to utilize its partnership with Scent Library to tap into the immense potential of the Chinese fragrance market and further solidify its position in the global beauty industry.

Useful Links:
Scent Library Official Website
Puig Official Website