Prior to the 20th century, Europe was the source and main producer of fragrances and perfumes. The first alcohol-based perfume was created in Hungary in 1370; it is considered the first modern perfume for its use of an alcohol solution for a base as opposed to the oils that were used as bases in the ancient civilizations. The fragrance was created for the Queen of Hungary and it became known as "Hungary Water" throughout Europe. The modern practice of perfume-making prospered throughout Europe and guilds of perfumers were soon organized. For hundreds of years thereafter perfumes were primarily used by the wealthy that often had their personal perfumers. In 18th century France, the court of King Louis XV was called "the perfumed court" for its heavy use of the scented fragrances, not only on clothing but also furniture and objects throughout the royal palace. The elaborate use of perfumes continued through the reign of Napoleon.

Many of the famous perfume houses today go back to 19th century Europe. One such example is Guerlain. The Guerlain perfume house was first established in 1828 in Paris by Pierre-Francois Pascal Guerlain. Guerlain, with the help of his two sons, would create custom scents for his aristocratic patrons. His success and prestige grew quickly and he soon had the honor of creating perfumes for Queen Victoria as well as Queen Isabelle II. The Guerlain house of perfumes would continue to prosper for generations after Pierre-Francois's death in 1864 and keep their reputation of master perfumers. In 1889, Guerlain released the first highly-concentrated perfume Jicky which is close to the perfumes created in the 20th century. They are still creating popular fragrances today. Many of the scents created in early 1900's are still sold and marketed today. Guerlain perfumes include Mitsouko (originally created in 1919) as well as Shalimar (1925).

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