Fragrance is one of the most powerful segments in the cosmetics industry. With Coty Inc. making headlines for doubling down on its fragrance business—particularly in China, where the market is reportedly experiencing significant growth—the company’s strategy offers a glimpse into the industry’s next chapter. Coty CEO Sue Nabi has noted that the China International Import Expo has been instrumental in driving this growth, adding that “Chinese consumers are among the most knowledgeable and most demanding in the world.” The question now is what, exactly, those consumers are demanding. Are they seeking sustainability, clean formulations, or both?
Another trend Nabi alluded to is smellmaxxing—particularly popular among younger men—a cultural counterpoint to the ingredient-conscious movement of clean and sustainable beauty. As Coty expands its fragrance portfolio, the industry faces the challenge of satisfying consumers’ desire for memorable scents without compromising on sustainability or safety.
Why Fragrance Raises Questions
Fragrance is historically one of the leading causes of skin allergies, sending millions of people to the doctor each year with irritation or reactions. The term “fragrance” in skincare and cosmetics often remains intentionally vague to protect proprietary blends. While understandable, this lack of clarity makes it difficult for people with sensitivities to know what they’re using. Even essential oils, which are considered “natural”, can trigger allergic responses. Clean, at its core, is about transparency. There may never be a single agreed-upon definition of clean beauty, but ingredient transparency allows consumers to make informed choices.
Innovation and Sustainability
In 2023, Coty announced that Gucci Eau de Parfum, Where My Heart Beats, would be the first globally distributed fragrance manufactured using alcohol made from 100% recycled carbon emissions. This partnership with LanzaTech positions Coty as a leader in sustainable innovation.
Coty has also appointed a Chief Scientific & Sustainability Officer to drive initiatives like its first refillable fragrance, Chloé Rose Naturelle Intense Eau de Parfum.
For clarity’s sake, Gucci fragrance is licensed to Coty (acquired in 2016), not owned by Coty. Coty itself is owned by JAB Holding Company, while Gucci belongs to Kering, a French multinational.
Clean vs Sustainable
Sustainability focuses on environmental impact, such as how a product is sourced, produced, and packaged. Clean, however, focuses on human health, ingredient safety, and cruelty-free, environmentally responsible practices.
Many perfumes contain phthalates (endocrine disruptors), parabens, synthetic musks, and VOCs, which may pose respiratory and other health concerns. So while Coty’s carbon capture innovation is a sustainable step forward, it doesn’t automatically make a formula clean.
The Bigger Picture
The fragrance category is evolving, with major players like Coty pushing environmental innovation while consumers continue to demand transparency and safety.
The next phase of fragrance may balance both: sustainable manufacturing and cleaner formulations. That will be a space to watch.
Sustainable + Clean
L’Occitane en Provence is a French beauty brand that seamlessly bridges clean and sustainable principles. Its Amande collection features vegan shower and body oils that blend traditional Provençal aromatics with ingredient transparency. In partnership with Carbios—a France-based biotechnology company—L’Occitane has introduced a transparent PET bottle made entirely from enzymatically recycled plastic for its shower oil, marking a significant step toward circular packaging.
Both products are phthalate-free and formulated without controversial additives—proof that indulgence, performance, and environmental responsibility can coexist beautifully.
