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Home Fragrance Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global home fragrance products market was valued at USD 7.8 billion in 2021 and is projected to expand at a CAGR of 5.3% from 2022 to 2030. Home fragrances are used to create a pleasant and refreshing atmosphere in homes and workplaces. Consumers are increasingly demanding products which provide aromatherapy, and this is driving demand for home fragrances. Furthermore, the increasing prevalence of air fresheners and diffusers has been driving the market.
The growing popularity of aromatic and scented candles, as well as wax melts, is expected to further fuel the growth of the market. Consumers are increasingly purchasing these products to enhance the ambience of their homes. Furthermore, the growing demand for home fragrances among millennials is driving the market. Companies are launching various scented candles to cater to the changing consumer demand. For instance, in April 2021, Kringle Candle Co. launched a new range of scented candles in various sizes and fragrances, such as Lavender and Sage, Summer Breeze, and White Sage & Lavender.
Furthermore, the increasing preference for home fragrances with natural ingredients is stimulating the market growth. The increasing health concerns of consumers related to chemical-based fragrances are propelling the demand for natural home fragrances. Companies are introducing natural fragrances to cater to the growing demand for natural home fragrances. For instance, in February 2021, The Nature’s Garden launched a new range of home fragrances made with natural ingredients. The range includes air fresheners, fragrances, and room sprays.
The increasing trend of gifting home fragrances is also driving the market. Companies are launching various gift packs to capture the attention of consumers. Additionally, the rising popularity of home fragrances among luxury hotels and resorts is also driving the market. Companies are launching new and innovative home fragrances to target the premium segment. For instance, in October 2020, Aromatika launched a new range of premium home fragrances for luxury hotels and resorts. The range includes scented candles, diffusers, and aroma lamps.
Furthermore, the increasing adoption of home fragrances in the medical sector is expected to drive the market. The use of home fragrances in hospitals, nursing homes, and other medical settings is steadily increasing due to their ability to reduce stress and provide a calming effect. Moreover, the availability of various home fragrances through various online and offline platforms is further driving the market growth.
Product Insights
The candles segment dominated the home fragrance products market in 2022, accounting for a share of around 66.7%. The growing popularity of scented candles among consumers, increasing demand for aromatherapy candles, and rising awareness among consumers regarding the use of candles as a decorative piece to replace traditional items are some of the key factors driving the growth of the segment. Furthermore, the emergence of various novel scents and the launch of innovative candles with different shapes and sizes are expected to fuel the demand for scented candles over the forecast period.
The diffusers segment is anticipated to expand at the fastest CAGR of 10.9% over the forecast period. Increasing demand for essential oil diffusers due to their multipurpose use, rising awareness about the health benefits of essential oils, and the increasing popularity of decorative home fragrances are some of the key factors driving the growth of the segment. Furthermore, the emergence of various innovative diffuser designs is expected to fuel the demand for diffusers over the next few years.
Distribution Channel Insights
The supermarkets and hypermarkets segment held the largest market share of over 39.0% in 2022. The growth of this segment can be attributed to the increasing number of supermarkets and hypermarkets, as well as their ability to provide customers with a wide variety of home fragrances products. According to a study by FashionNetwork.com in 2020, more than 75% of people prefer to purchase home fragrances from supermarkets & hypermarkets. Moreover, the presence of multiple stores in different locations helps customers to find their preferred scent quickly.
The online segment is anticipated to expand at the highest CAGR of 13.1% during the forecast period. The increasing number of online stores offering home fragrances products, such as Amazon, Flipkart, and Nykaa, is expected to drive the segment growth. In addition, the availability of online discounts and offers enables customers to purchase home fragrances at discounted prices. Furthermore, the availability of multiple payment options, such as cash-on-delivery, credit/debit cards, net banking, and other payment wallets, is further expected to fuel the segment growth.
Type Insights
The candle segment dominated the home fragrance products market in 2022 and is projected to remain the largest segment over the forecast period. The increasing preference for luxury home fragrance products among affluent customers is driving the demand for candles. Furthermore, the introduction of innovative candle designs and fragrances is also anticipated to fuel the growth of this segment. For instance, in August 2020, Bath & Body Works, a brand of L Brands, Inc., launched a new collection of candles for the holiday season, which includes the ‘Nightmare Before Christmas’ collection.
The diffusers segment is projected to witness the fastest growth over the forecast period. The increasing awareness among consumers regarding the health benefits of diffusers over traditional fragrances is driving the demand for diffusers. Furthermore, the rising trend of aromatherapy among consumers is generating the demand for diffusers. For instance, in May 2020, Natural Home Brands, a U.S. based home décor and lifestyle brand, launched a collection of aromatherapy diffusers. The collection includes a range of diffusers in various colors, shapes, and sizes, with options including ultrasonic, nebulizing, and fan diffusers.
Regional Insights
Asia Pacific held the largest market share of over 35.7% in 2022 and is expected to grow at a significant rate during the forecast period. The region is a major consumer of home fragrance products, due to the growing trend of aromatherapy, which is used to calm the mind and body. Furthermore, the rising demand for organic home fragrance products, such as essential oils, scented candles, and incense sticks, is driving growth in the region. For instance, in October 2020, Yuge, a Chinese home fragrance brand, launched a range of scented candles with natural fragrances such as lavender, eucalyptus, cedarwood, and citrus.
The market in Europe is expected to witness steady growth in the coming years, owing to the increasing demand for home fragrances, particularly in France, Germany, the U.K., and Italy. The region is home to prominent players, such as Henkel, Procter & Gamble, and Reckitt Benckiser, who offer an extensive range of home fragrances, such as air fresheners and scented candles. Furthermore, the rising demand for home fragrances as a gifting option is expected to drive growth in the region. For instance, in February 2021, the British retailer The White Company launched several new home fragrances, such as jasmine, tea rose, and orangewood, which were specifically designed as gifts.
Financial Projections
In this part of the home fragrance products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a home fragrance products business comes from the sale of products, wholesale orders, and online orders. Other possible sources of profit are also possible such as retail sales, fundraising, and the sale of merchandise.
Projecting Expenses
In this section, all the regular expenses related to keeping the home fragrance products business running will be described. The list of operating expenses includes inventory costs, wages, marketing, advertising and promotion, rent and utilities, insurance policies, and others.
Key companies & market share insights
Some of the key players operating in the home fragrance products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In June 2022, Glade launched a range of natural home fragrances that are free from phthalates, parabens, and dyes.
– In August 2022, Air Wick launched a range of scented oils that are designed to provide long-lasting fragrance.
– In October 2022, Febreze launched a range of home fragrances that are designed to provide a subtle, long-lasting scent.
Some of the prominent players in the home fragrance products market include:
– Glade (SC Johnson & Son)
– Air Wick (Reckitt Benckiser Group plc)
– Febreze (Procter & Gamble Co.)
– Yankee Candle (Jarden Corporation)
– Henkel Corporation
– Kao Corporation
– Church & Dwight Co., Inc.
– Natura & Co.
– L Brands, Inc.
– Kao USA, Inc.
Global Colostrum Market Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global home fragrance products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Candles
– Diffusers
– Sprays
– Room Fresheners
– Others
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Mass
– Premium
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the Potential of Product Innovation in the Home Fragrance Products Market?
[A]: Product innovation is expected to continue to drive the home fragrance products market. Manufacturers are focusing on developing innovative products that provide convenience while being aesthetically pleasing. Additionally, the introduction of products made with natural ingredients has been a major driver of market growth.
[Q]: Who are the Key Players in the Home Fragrance Products Market?
[A]: Major players in the home fragrance products market include Procter & Gamble Co., Glade, SC Johnson, Church & Dwight Co., Reckitt Benckiser Group Plc., and Yankee Candle Company.
[Q]: Which Region Offers the Largest Opportunity for Sales of Home Fragrance Products?
[A]: North America is expected to be the largest revenue contributor to the home fragrance products market. This is due to the presence of a large number of established players, high purchasing power and awareness about home fragrances.
[Q]: What are the factors driving the home fragrance products market?
[A]: Key drivers of the home fragrance products market include the growing demand for luxury home fragrances, an increase in the number of working women and disposable income, rising awareness about aromatherapy, and increasing consumer preference for natural fragrances.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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