Arcade Beauty ramps up fragrance capabilities and sustainable sampling

After a very dynamic 2024, Arcade Beauty is approaching 2025 with caution but optimism. A specialist in sampling and custom packaging for perfume and cosmetics players, the group is strengthening its position with new capabilities in Europe and continuing to develop more sustainable solutions. Premium Beauty News met with Carl Allain, President and CEO of the group.

Although Arcade Beauty does not disclose its financial results, CEO Carl Allain paints an upbeat picture of the company's performance, buoyed by strong momentum in the fragrance sector. "We're seeing a normalization following the sharp post-pandemic growth surge. 2024 and early 2025 have been excellent for the fragrance segment, in terms of both sampling and finished product sales," he notes.

Still, Allain acknowledges the broader economic uncertainty. "There's clearly a wait-and-see attitude affecting decision-making. In this environment, our transatlantic footprint is a real advantage," he says.

While the group's business was previously fairly balanced between cosmetics and perfumes, the latter category is now taking over: "We anticipate a 55/45 split in favor of perfumes this year, compared to 50/50 last year."

The growth in perfumes is fueled by sustained demand from all clients, whether major brands or niche brands. "Conversely, cosmetics is experiencing a slight slowdown, particularly due to tensions in the Chinese market."

Expanded capacity

Furthermore, Arcade Beauty is evolving its business model to align with the transformation of fragrance sampling. "We're seeing a clear shift toward premiumization, with larger, often resealable formats," says Carl Allain. "We're moving further away from the traditional flat sample, which is fueling a wave of innovation."

Demand for basic flat samples is gradually declining, replaced by more sophisticated, three-dimensional formats that increasingly resemble miniature retail products. "While overall volumes are slightly down, the value per unit is rising," Allain explains.

The market for fragrance miniatures is also booming. "We're on track to produce 20 million units this year, and we plan to double our capacity within 2 years ," he adds.

To support this growth, the group is investing in new filling lines at its Val-de-Reuil facility in Normandy, with a particular focus on mini-product formats. In parallel, some industrial equipment will be reallocated, as packaging lines are set to be transferred to the newly acquired Ploërmel site in Brittany. The facility, purchased from Groupe Rocher in 2024, will enhance the group's production capabilities.

With this 100% perfume-focused factory, Arcade Beauty intends to accelerate its expansion into the retail product segment. The site's teams master all stages of manufacturing: formulation, alcoholization, maceration, and packaging. Additional investments are planned, particularly in labeling and boxing lines.

The group aims to meet the full spectrum of market demand: providing additional capacity for brands with in-house manufacturing, offering a high-performance production platform for fabless companies, and supporting niche brands through a newly manual workshop currently being set up, dedicated to small production runs.

Arcade Beauty, which sees this site as "a key industrial tool" for its growth strategy in Europe, also intends to produce other scented products such as body and hair mists in Ploërmel.

Complex projects

Growth will therefore come from increased activity in the packaging of products in retail formats. Arcade Beauty already generates 30% of its revenue in this segment, compared to 20% in 2021. This growth is explained by a strong positioning in high value-added projects.

"Our expertise lies in managing complex projects, particularly for sophisticated packaging, refills, and formats that are difficult to fill," explains Carl Allain. The group intends to make this its core expertise. "We can rely on our own engineering teams to adapt our tools and machines to different types of projects."

With operations spanning three continents — North America, South America, and Europe — Arcade Beauty leverages its global footprint to offer agility and flexibility to its partners. "We have the capability to produce identical products in both Europe and the United States, which provides reassurance to our clients — especially in the current context of uncertainty around U.S. trade policy."

In Brazil, a market described as "fairly dynamic," the company focuses exclusively on personal care, operating as a subcontractor in the dermo-cosmetic and haircare segments.

Towards more sustainable sampling solutions

Arcade Beauty is making tangible progress in sustainable innovation, recently earning an award at Luxe Pack New York for its 80% Paper Packette sample. The company has also completely redesigned its ScentSeal fragrance technology to significantly reduce its environmental impact.

"Today, 94% of our product range in Europe has a recyclable alternative, and 65% incorporates recycled or certified materials," notes Carl Allain. In the U.S., the numbers are slightly lower — 69% recyclable alternatives and 45% with recycled or certified content — but demand for sustainable solutions is clearly on the rise.

For its thermoformed samples, the group is prioritizing mono-material solutions, such as PET or PP. "There a strong demand from brands," says Carl Allain. "The additional cost remains manageable, and as volumes grow, we anticipate reaching price parity between conventional and eco-designed options."

Finally, Arcade Beauty is banking on its industrial integration as a lever for competitiveness. The group manufactures some of its strategic components in-house: printed laminates for doypacks (at Socoprint), printed cardboard (via Carestia), and even glass drawn in the United States. "this vertical integration allows us to offer customized, complex, and high value-added solutions," concludes Carl Allain.

From : Premium Beauty