Perfume & Pollution: Coty’s China Playbook at the Crossroads of Clean Beauty

When Coty’s CEO, Sue Y. Nabi, laid out the company’s vision three years ago, she sketched a bold transformation: mass-market brands like CoverGirl, Rimmel, and Max Factor would evolve toward “clean” and “skinified” makeup. Prestige fragrance would surge, and skincare brands designed for China’s pollution-sensitive consumers would become central. Today, many of those ambitions are converging.

Strategic Signals: Divesting Mass, Doubling Down on Prestige & Fragrance

Recent reports confirm that Coty has launched a strategic review of its Consumer Beauty division, which includes legacy mass-market brands such as CoverGirl, Rimmel, Sally Hansen, and Max Factor. The move could result in sales, spin-offs, or partnerships, signaling Coty’s intent to reduce debt and sharpen its focus on its fastest-growing segments: prestige fragrance and skincare.

Clean Beauty & Technical Innovation: Orveda and Lancaster

One of Coty’s ultra-premium skincare brands is Orveda, founded by Sue Y. Nabi and Nicolas Vu. Launched in 2017, it sits at the intersection of biotechnology, vegan formulations, and high concentrations of active ingredients. Coty integrated Orveda into its portfolio in 2021 and has positioned it for expansion in Asia, particularly China.

Lancaster, historically known for sun care, has also been repositioned as a protection-focused skincare brand. Its anti-pollution and UV-defense formulations are finding traction in China, especially in Hainan, a key testing ground for prestige skincare.

Where My Heart Beats: Fragrance Reimagined with Carbon-Captured Alcohol

In 2023, Coty introduced Gucci – Where My Heart Beats Eau de Parfum from The Alchemist’s Garden line. It was the first globally distributed fragrance made using 100% carbon-captured alcohol. The alcohol is produced by US-based biotech company LanzaTech’s CarbonSmart™ process, which transforms industrial gas emissions into ethanol suitable for cosmetics.

The innovation represents a milestone in sustainable fragrance manufacturing: reducing carbon emissions and water use. However, while Coty’s strategy focuses on sustainability, it does not explicitly address health-related ingredient concerns such as phthalates and other endocrine disruptors—an increasingly important issue for consumers seeking both environmental and personal safety in their beauty choices.

China: Pollution, Prestige, and Fragrance Potential

As outlined in interviews, it seems Coty’s ambitions in China remain central to its growth strategy. Prestige beauty in China has been outpacing other regions, and Coty’s prestige fragrance and skincare lines are positioned to benefit from that momentum. Lancaster’s double-digit growth underscores how rapidly Chinese consumers are embracing products that promise protection from pollution and UV damage.

At the same time, the prestige fragrance market in China is still underdeveloped. Only a small fraction of consumers regularly use fragrance, but according to Coty’s CEO it is growing quickly. With brands like Gucci, Burberry, Calvin Klein, Hugo Boss, and Chloé in its portfolio, Coty is well placed to capitalize on this demand for high-end scent and skincare.