This week, I checked in on AI-powered fragrance startup Osmo’s decision to auction off its patented fragrance molecules. Additionally, Estée Lauder invests in its North American fragrance portfolio, and a new SPF filter receives FDA approval for the first time in decades.
On Monday, the World Perfumery Congress will kick off in Monterey, California, where executives and founders from the likes of Interparfums and Snif will gather to discuss the latest and greatest in fragrance. This year, that includes the fragrance startup Osmo, which will auction off 10 of its patented fragrance molecules on June 23.
Those fragrance molecules were all developed using Osmo’s proprietary artificial intelligence, which the company calls olfactory intelligence. According to Osmo CEO Alex Wiltschko, the company’s use of AI has enabled it to evaluate the commercial potential of billions of scent molecules.
“I think part of why this is possible is because AI is truly transforming the world. Now it is transforming fragrance ingredient discovery,” said Wiltschko. “The broader thread for the industry is, I think, everyone deserves more innovation in fragrance technology. And this is one of the ways in which we’re trying to really rapidly increase the pace of innovation and make it available to all.”
Potential buyers for the ingredients that will be sold at the congress will decide just how valuable those AI-developed notes are. Among the Osmo ingredients that will be up for auction are Glossine, a floral, jasmine-like note promising longevity on skin and fabric; Melonpop, which purports to capture the complex fruity notes of a cantaloupe; and Tonkacloud, a warm, gourmand note proposed as an alternative to coumarin, a widely used fragrance ingredient whose safety has been the source of debate.
Wiltschko, a neuroscientist and Google Brain veteran, launched Osmo in 2022 with $60 million in Series A funding led by Google Ventures and Lux Capital. In February, the company announced it had secured $70 million in Series B funding and added former Unilever and Givaudan execs to its C-suite.
The winning bidders at the auction will hold the exclusive rights to use Osmo’s patented ingredients, also known as “captives” in the fragrance industry, in their products. While fragrance houses often keep a close guard on their proprietary creations, Wiltschko is aiming to sell Osmo’s IP directly to his competitors.
“The industry typically operates in a very opaque way, so you might not even know [a company] has a captive, or they might tell you they have a captive and not tell you what it’s really doing in your fragrance,” said Wiltschko. “A major theme of how Osmo is approaching how we serve the fragrance industry is by increasing transparency. And so by offering all these really great products to basically everybody, it forces a reckoning with an old cultural tenet in the industry that won’t survive in the modern world.”
Proprietary ingredients are integral to innovation and competition in the fragrance industry. In addition to employing the perfumers that make many of the perfumes on the market, fragrance houses like IFF and Dsm-Firmenich also work to create new fragrance ingredients that can fill gaps in their perfumers’ palettes, offer alternatives to scarce natural resources or replace ingredients banned for safety concerns. Some, like Givaudan’s proprietary Akigalawood, are key components in best-selling perfumes from major brands.
But while a company like Givaudan may work on thousands of ingredients a year, typically just one or two will make it to market. Wiltschko said Osmo developed more than 40 new molecules, including the 10 that will be put up at auction in Monterey.
Wiltschko said Osmo has received private offers to purchase some of its captives. But he believes an open auction will make plain their true value. And when it comes to the rapidly evolving — and controversial — world of AI, that value is still very much in flux.
“Nobody knows what these things are actually worth,” said Wiltschko. “And the only way to discover that is through market dynamics.”
Executive moves:
- The Estée Lauder Companies names Vérane de Marffy as svp/gm of fragrances North America. De Marffy will be responsible for leading growth for brands such as Kilian and Frederic Malle. She joins the company with two decades of experience at L’Oréal, where she oversaw brands such as Ralph Lauren fragrances.
News to know:
- Bemotrizinol earns FDA approval, making it the first chemical UV filter to be approved for use in sunscreen in the U.S. in nearly 30 years. DSM-Firmenich has the exclusive rights to market bemotrizinol, also known by the brand name Parsol Shield, in the U.S. for 18 months. The ingredient is already used in SPF products sold in Europe and Asia.
- The U.K. government announced a plan to ban social media for all children under 16. Prime Minister Keir Starmer announced the ban would likely take effect in early 2027. The ban would impact social platforms like TikTok, Snapchat, YouTube and Instagram, but not messaging apps like WhatsApp.
- Dermatologist skin-care brand Remedy secured $20 million in Series A funding, led by private equity firm L Catterton. The brand was founded by Dr. Muneeb Shah in 2024 and is now sold on Amazon, TikTok Shop and Target. The private equity firm has also made investments in beauty brands such as Vyrao and YSE.
Stat of the week:
According to Launchmetrics’ Beauty in the Multigenerational Era report, brands that used “multigenerational” campaigns grew their media impact value by 42% from Q4 2025 to Q1 2026, compared to 36% for brands that did not.
In the headlines:
Bath & Body Works’ strategy to win more younger consumers. No longer “supporting cast,” grooms now want glam squads, too. Sunny with a high chance of sunscreen: 2026 SPF trends.
Listen in:
In today’s episode of the Glossy Beauty Podcast, host Lexy Lebsack takes listeners live onstage at Glossy’s E-Commerce Summit with Ulta Beauty’s Josh Friedman, Tarte’s Jenna Manula Linares and Beekman1802’s David Baker to learn about the impact of AI on workflows.
Need a Glossy recap?
Wearables that track sun exposure are here and ready to disrupt the sun-care market. Glossy Pop Newsletter: Perfume brand Heretic is leaning into the ‘B-side’ of pop culture, one unexpected collab at a time. Saie bets on education with ‘The Makeup Class’ to create brand ‘superfans.’ The men’s grooming opportunity at the World Cup.
