Home Fragrance Market Analysis Report By Product, By Distribution Channel, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global home fragrance market size was accounted for USD 6.7 billion in 2018. The market is expected to witness a significant growth rate with a CAGR of 4.4%, from 2019 to 2025. This growth can be attributed to the rising demand of consumers to mask unpleasant odors. Also, the increasing disposable income among consumers has resulted in the rise of willingness to spend more on personal care and hygiene products, including fragrances. Thus, the market is anticipated to grow during the forecasted period, 2019 to 2025.

The market for such products is mainly driven by the rising demand for customized products. For example, a candle brand named Yankee allowed its customers to select the fragrance as per their choice along with a picture or personal quote added in the packaged box. Along with such customized preferences bark, metal or concrete containers, and candlewood made from the wicks are also being provided to boost the aesthetic look of the home.

Some of the manufacturers such as the Himalayan Trading Post also provide metal pots or wooden trays to increase the life of such fragrance after its use. Byredo has also collaborated with Ikea to develop a variety of fragrances as per the emotions of the consumers. Also, a variety of ultrasonic diffuser manufacturers such as Saje Natural Wellness also provides the flexibility to the consumers to pre-set the timers present across the diffusers.

The increasing preference for air care and the demand for a pleasant fragrance in the surrounding is anticipated to drive the market in the upcoming years. Also, the increasing popularity of aromatherapy across residential zone is expected to fuel the demand. A variety of scented candles that are non-toxic and led free are being used by spas instead of the other fragrances.  

Many developing countries such as China and India are expected to witness high demand for such products. This growing demand can be attributed to the rapid urbanization and rising disposable income among the working population. The rising number of retail stores coupled with the influence of the e-commerce industry on the consumers is expected to drive the demand for home fragrance products in the upcoming years.

The standard of living across such countries has improved over the last few years. The National Bureau of Statistics stated that the per capita income of China, in 2017 was USD 4,099.4. Such statistics influence the home fragrances market growth in countries like China, thereby boosting the overall market in the upcoming years.

Product Insights

In 2018, the segment of spray held the largest share with USD 2.2 billion. They are cost-effective as compared to the rest of the product types and are available in many fragrances such as jasmine, lavender, and rose. Some of the sprays Like Aer Matic by Godrej use four different fragrances simultaneously with regular time intervals.

The segment for candles is projected to have the fastest growing CAGR of 4.1% during the forecasted years, 2019 to 2025. Some of the key manufacturers such as Otherland have started manufacturing a variety of scented candles. The demand for such candles is expected to increase in the upcoming years owing to their ability to satisfy the need for aroma. This is enabled the high growth rate for this segment over the forecast period.

Distribution Channel Insights

In 2018, the largest share of 51.5% was held by the segment of supermarkets and hypermarkets. This growth can be attributed to the demand for physical scanning before making the decision for purchase coupled with the availability of store associates across such stores who help to choose the product as per the desired specifications. Also, the emergence of the organized sector of retail is increasing product visibility for such consumer goods. Therefore, the home fragrance market is expected to boost in the upcoming years.

The segment of the online distribution channel is expected to grow at a CAGR of 5.1% during the forecasted years, 2019 to 2025. This can be attributed to the rising internet usage among the millennials coupled with the ease of shopping and doorstep delivery. Thus, the majority of the manufacturers have started selling their products through their online portals and e-commerce websites like Amazon, Alibaba, and Walmart by establishing tie-ups with them.

Regional Insights

In 2018, the region of Europe was the largest regional market holding a share of 32.3%. The majority of the developed countries like the U.K., France, and Germany drive the market for home fragrance across this region. This can be attributed to the increase in the standard of living coupled with the willingness to spend on such products to maintain hygiene and pleasant fragrance in the surrounding. The increasing number of manufacturers across this region has led to the rising availability of such products. For instance, The ESTEBAN Paris had launched the technique of refilling the scented candles, thereby increasing the life of candles.

The region of Asia Pacific is expected to register the fastest growing CAGR of 4.7% during the forecasted years, 2019 to 2025. Some factors responsible for this growth are the increasing disposable income and the awareness about improvement in the quality of air owing to the rising pollution and dust particles. Consumers especially the working population are willing to spend money on such products to improve the standard of living. This attributes to rising in the middle-class population across developing regions like the Asia Pacific and the Middle East and Africa.

Home Fragrance Market Share Insights

The key players in the market of home fragrances are Procter and Gamble; Reckitt Benckister; Newell Brands; Esteban Paris; 3M company; Seda France, Inc.; S. C. Johnson & Son, Inc.; Voluspa; 3M company and Scent Air. An increase in the standard of living of consumers and rising concerns over the quality of the air are providing an opportunity for manufacturers to boost their sales.

These manufacturers have started focusing on product development and innovation to launch new fragrances as desired by the consumers. Also, they are manufacturing a variety of home fragrances using natural extracts which can preserve the essence of aroma for a long time.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global home fragrance market report based on product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2015 - 2025)
     • Sprays
     • Diffusers
     • Candles
     • Others

• Distribution Channel Outlook (Revenue, USD Million, 2015 - 2025)
     • Supermarkets & Hypermarkets
     • Convenience Stores
     • Online

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
     • North America
         • U.S.
     • Europe
         • U.K.
         • France
         • The Asia Pacific
     • China
         • India
     • Central & South America
     • Middle East & Africa