In 2009, the industry launched fewer scents than it did in 2008, breaking a long streak of exponential growth. To Khoury’s thinking, this is a positive result of the financial crisis of the last 18 months. “The consumer has been overwhelmed with the number of launches, the amount of choice, and in some cases the lack of differentiation,” she says. This excess of new scents has coincided with a decline in the number of consumers buying fragrance. Khoury hopes a smaller pool of launches will feature more discerning character and “help us reconnect with the consumer.”

— That's Karen Khoury,  a senior Vice President at Estee Lauder. And I hope so too. Read the rest at Fine Fragrance’s New Reality at GCI.

The overall industry decline was primarily driven by fragrance. Total sales of fragrance totaled $2.48 billion in 2009, down 10% in both men’s and women’s. One segment that performed slightly better than the overall market was gift sets, which dropped the least, down 8% in women’s and 5% in men’s, offset somewhat by the increase in average price, reaching an average of $64.50 for both genders.

— From U.S. Prestige Beauty Industry Posts Declines at Happi.

Though the fragrance market has been challenged, there are areas that are resonating with consumers. Smaller sizes are becoming an increasingly important option today. What’s encouraging is that they are not just working in women’s scents or new fragrances…we are also seeing growth in smaller sizes for both women’s and men’s fragrances (one ounce and smaller) and classics, as well as new scents.

— Karen Grant of The NPD Group, quoted in Good Things Come In Small Packages at Happi.

Sales of prestige beauty products in the US declined by 6 percent in 2009, according to market research company NPD Group.

...NPD noted that all the US prestige categories experienced dollar declines, with the biggest decline being in fragrances, followed by prestige make-up and skincare.

— From US market for prestige beauty products suffered in 2009 at Cosmetics Design. Sales in mass market fragrances also declined last year.