Gen Z Consumers Are Obsessed with Fragrances, Boosting Sales for Coty and Estee.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 07 2025
0mins
Should l Buy COTY?
Source: Reuters
Fragrance Popularity Among Gen Z: Fragrances have become a key product for Gen Z shoppers, who are increasingly using scents to express their style and improve their mood during economic uncertainty, reflecting the "lipstick effect" where consumers opt for small luxuries instead of larger purchases.
Investment by Major Brands: Major beauty companies like Estee Lauder, L'Oréal, and Coty are significantly investing in their fragrance lines, which have become primary sales drivers, with Coty forecasting growth due to rising demand for its fragrance brands.
Market Trends and Sales Growth: Data indicates that 38% of fragrance spending comes from households with Gen Z members, and global fragrance sales growth has outpaced that of makeup and skincare, with prestige fragrance sales increasing by 6% in the first half of 2025.
Strategic Acquisitions and Innovations: Companies are expanding their fragrance portfolios through acquisitions, such as L'Oréal's $4.7 billion deal for Kering's brands, while also leveraging technology and social media to engage younger consumers, including the use of AI to connect scent descriptions with consumer preferences.
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Analyst Views on COTY
Wall Street analysts forecast COTY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for COTY is 4.61 USD with a low forecast of 3.00 USD and a high forecast of 10.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
1 Buy
10 Hold
2 Sell
Hold
Current: 2.660
Low
3.00
Averages
4.61
High
10.00
Current: 2.660
Low
3.00
Averages
4.61
High
10.00
About COTY
Coty Inc. is a beauty company with a portfolio of brands across fragrance, color cosmetics, and skin and body care. The Company has a diverse portfolio of brands, which includes both owned and licensed. Its brand portfolio is classified into two segments: Consumer beauty and Prestige. The consumer beauty brands include Adidas, Beckham, Bozzano, Bourjois, Bruno Banani, CoverGirl, Jovan, Mexx, LeGer by Lena Gercke, Monange, Nautica, Paixao, Rimmel, Risque, Sally Hansen, and Vera Wang. Its prestige brands include Burberry, Calvin Klein, Chloe, Davidoff, Escada, Gucci, Hugo Boss, Jil Sander, Kylie Cosmetics by Kylie Jenner, Lancaster, Marc Jacobs, Miu Miu, Orveda, and Tiffany & Co. Its mass beauty brands are primarily sold through hypermarkets, supermarkets, drug stores and pharmacies, mid-tier department stores, traditional food and drug retailers, and dedicated e-commerce retailers. It markets, sells and distributes its products in over 120 countries and territories.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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