Eternal Beauty Holdings Limited (“Eternal Beauty Holdings” or the “Group”), a pioneer in China’s fragrance industry, hosted the “Fragrance Innovation: Market Trends, Opportunities, and the Future” forum at the Hong Kong Convention and Exhibition Centre, and officially released the “2025 Hong Kong and Macau Fragrance Market Trends White Paper” (“White Paper”). The White Paper provides an in-depth analysis of structural shifts in consumer trends in Hong Kong and Macau – from the mainstreaming of home fragrances to its evolving role in emotional wellbeing, equipping stakeholders with data-driven strategies for the new era.

The forum centered on elevating industry practices through real-world applications, bringing together cross-industry leaders for in-depth discussions. Distinguished speakers included Ms. Chole Lam, Executive Director and CEO of Eternal Beauty Holdings; Mr. Horace Lam, CEO of K11 Hong Kong; and Mr. Mayao Ma, a singer and renowned fragrance enthusiast. The discussion explored innovative applications of fragrance experiences in retail, pop culture and commercial domains, highlighting scent’s revolutionary potential across these sectors.

In her opening remarks, Ms. Wendy Lau, Executive Director of Eternal Beauty Holdings, stressed: “The White Paper research has found the fragrance industry shifting strategically from giving ‘sensory pleasure’ to satisfying ‘core emotional wellness needs’. Boasting channel advantage and a multinational service network for 40 years, the Group will continue to serve as the core bridge for global fragrance brands to enter the Chinese market, push to integrate in depth international innovation with China’s consumption upgrade, and drive high-quality development of the industry.”

Ms. Chole Lam, Chief Executive Officer of Eternal Beauty Holdings, said: “The fragrance industry is transforming from availing products very much ornamental to offering emotional wellness solutions. Close to 30% of Hong Kong and Macau consumers use fragrances to relax their minds and bodies, and 18% to relieve stress and anxiety. Eternal Beauty Holdings, as an industry leader, is committed to promoting overall upgrade of the fragrance industry and is embarking on transforming strategically from offering standalone products to cross-scenario health solutions. Going forward, we will continue to optimize our brand portfolio, deepen our omni-channel layout, so as to fully grasp the golden opportunities in the growing market.”

The White Paper, based on an in-depth survey of 790 consumers from Hong Kong and Macau conducted in July 2025, reveals three pivotal market shifts (click here for full White Paper):

• Rise in the prevalence of home fragrance usage: 81% of consumers now incorporate fragrances into daily routines, representing a 9% increase compared to 2024.
• Emotion-driven consumption: 86% of consumers extend personal perfume preferences to living spaces; fragrances are no longer luxuries, but also essentials for emotions and wellness.
• Rise of olfactory economy in commercial spaces: 70% of consumers prefer commercial spaces with fragrance design, indicating olfactory experiences are redefining the retail landscape.

Five Core Consumer Market Insights:

• Emotional wellness as primary driver: Fragrances serve as key mediums for promoting physical and mental relaxation (30%), comfort and happiness (26.8%), and a sense of calm and tranquility (22%), while addressing stress and anxiety relief for nearly 18% of consumers, highlighting the market’s leadership in “emotional wellness” values.
• Commercial space influence: 70% of consumers prefer malls and hotels with fragrance designs, with K11 MUSEA leading at 43% brand recognition. 58% report that fragrance applications will encourage their stay, and 52% believe it will increase their desire to make purchases.
• Experiential consumption drives decisions: 43% of respondents rank in-store olfactory experiences as their top purchase consideration, significantly surpassing recommendations from family and friends (24%) and online reviews (15.8%).
• Sustainability challenges: While 53.5% of consumers prioritize natural ingredients, only 16.7% participate in fragrance bottle recycling programs. For sustainable packaging, 46.5% are willing to pay an extra price, and 53.9% are receptive to reduced longevity due to the exclusion of certain synthetic ingredients.
• Personalization and technology integration: 75% of respondents embrace innovations like AI-driven fragrance customization systems, while 80% engage with in-store scent interactions. Only 11% have tried AR/VR scent devices, indicating these technologies are still in the early stages of application.
• In the “Strategic Insights” session, Ms. Cindy Zhong, Director of General Affair at Eternal Beauty Holdings, together with Ms. Elly Yip, Head of SME One, Hong Kong Productivity Council, shared practical guidance for entering the Chinese market. They introduced how Eternal Beauty Holdings’ compliance filing channel and 360 omnichannel operation model assist brands in efficiently establishing a presence in the Chinese market. The session also analyzed how Hong Kong government funding initiatives, such as the “BUD Fund” and “EMF”, enable businesses to expand into the Mainland market. Additionally, strategies for successfully applying to these funding programs were shared during the session.

The global olfactory economy is rapidly developing, with fragrance products transitioning from lifestyle accessories to core elements of spatial experience. According to market data forecasts, the global home fragrance market is expected to reach USD 40 billion by 2032, with a compound annual growth rate (CAGR) of 6.56%. Considering this trend, Eternal Beauty Holdings continues to upgrade its dual-track strategy of “Local Brand Matrix” and “Perfume Box Retail Upgrade”, driving health-conscious consumer trends to become scalable commercial achievements.

Eternal Beauty Holdings will continue to lead the healthy development of the fragrance market, partnering with several international brands and collaborators to drive the fragrance industry into an “emotional wellness new era.”