I recently took part in a webinar hosted by Kline Market Research. The topic being, ‘A clean and fragrant home boosts the US market’ Part of the webinar touched on Home Fragrance Trends which is what im going to blog about.
Kline exposed some really interesting facts, figures and trends for the current and future home fragrance market. Although the US market is different from the UK and European markets, it leads and influences both. Yankee candles, S.C. Johnson and Bath and Bodyworks are market leaders in home fragrance; these companies dominate the worldwide fragrance markets so such research is valuable to Shearer Candles and its customers.
Home Fragrance Product Categories Researched:
Candles – wax, scented only, pillars, tealights, votives and contained
Diffusers – gelatin, oil, electric, battery, reed diffusers, gels, beads
Room Sprays – pump, aerosol
Home Fragrance Oils – oils, simmerings, lamps etc
Speciality Products – pot pourri, sachets, drawer liners, incense etc
Home Fragrance Distribution Channels Researched
Speciality Stores – Pier 1, Bath & Body Works
>Mass Market Outlets – Walmart, Target
Department Stores – Macy’s
Gift/ Card Stores – Independants, Chains
Direct Sales – Internet, QVC, Party Lite
From 2009 – 2010 there has been a 1% increase in sales of home fragrance products at manufacturing level. 2010 sales stood at $3373m.
Interestingly enough the Home fragrance market has not been so effected by recession because consumers class products as simple pleasures in difficult times.
Mass market outlets have seen strong sales in diffusers and room sprays.
Candles account for 40% of the home fragrance market.
The candle market has reached maturity. It sees slow and steady growth but still has the largest proportion of the home fragrance market.
Candles have faced stiff competition from instant fragrancing i.e. oils, room sprays and diffusers.
There has been a noticeable narrowing gap between mass and premium candle brand sales. This could be to do with the mass market offering of home fragrance products being very close to those in speciality stores.
Reasons for the mature steady growth of the candle market at 1% since 2005.
Woodwick – A large competitor in the fragrance market have seen a decline – they had trouble with the licensing of their famous wood wick from Proctor and Gamble.
Gift Stores – decline due to recession and their weak sales performance.
Mass Merchandisers and speciality stores gain sales – Yankee Candles in all Target stores.
Candle prices remain stable
Successful products – scent ribbons, Air Wick in the premium positioned lines.
These reasons show successes and failures in the market which in turn have kept sales at a steady rate. In 2008 there was a huge boom in the home fragrance market – this can be blamed on innovation and new brands/ products.
Scent and home decor are very important to customers, they add value which is a critical factor for purchase.
Apple, Hot Cider, Cinnamon, Nutmeg and Cloves
Green Tree, Green Tea, Citrus
Caribbean, Melon, Raspberry, Coconut
Lemon, Vanilla Bean, Lemon Zest, Hazelnut, Anise
Vanilla, Sugar, Lemon
Successful US products in the market:
Apple Cider – Yankee Candle, Green Tree Citrus – Febreze, Caribbean Escape – Slatkin & Co, Lemon Pound Cake- Village Candle, Vanilla Bean – Chesapeake Bay Candle.
As you can see fruit scents are extremely popular and successful.
Shearer Candles does a wide range of fruity scents – available to buy online now – Try our:
Yankee Candle is the market leader followed by Glade, then Bath and Body Works.
Filled candles are the leading candle type – anything in a glass or container adds value. Also smaller skus like mini votives are gaining in popularity – thought of as cute and appeal to the younger buyer.
Odour elimination continues as a key theme – but more so in room sprays and diffusers.
Innovation successes – Air Wick – Scented Ribbons.
Diffusers account for 21% of the Home Fragrance Market and have seen the fastest growth out of all the categories.
The diffuser market has seen a 4.2% Growth from 2005-10, although the previous two years have seen a decline its on the up again.
S.C. Johnnson is the market leader in diffusers. Proctor and Gamble, Henkle and Reckitt Benckiser tie in second place.
New products in diffusers – scent crystals, beads, Scentbug, spill proof diffusers, illuminators, touch and movement technology.
There is alot of scope for product innovation in this category.
Try Shearer Candles Scented Reed Diffusers – Long long lasting, delicious scents to compliment your candles.
Only £10 each for 100ml.
he Room Spray market has seen a 7.3% Growth from 2005-10, though experiences a 2% decline in sales over the past year.
Reasons for the decline could be:
Increase competition from fabric fresheners and air freshening multi purpose product.
Odour elimination technology is very popular instead of masking
The introduction of Automatic Sprays and Diffusers
Try Shearer Candles Scented Room Sprays, available to buy online now.
Only £7 each for 100ml bottle.
Speciality Products & oils.
Fragrance oils are huge and successful – guides on how to use them on packaging etc have helped sales.
They are an important add on product in the home fragrance market.
They have an older consumer base
Home Fragrance Future
2010-15 – predicted steady growth of 2.3%.
Factors that will affect the Home Fragrance Market
Continued growth through mass outlets
Multi- functional products
Opportunity for value added products
New distribution channels can provide opportunity
Strong Spending in diffusers and room sprays will affect candle sales.
Need new technology to drive business.
Innovations in fragrance, candle finish, flame glow and new diffuser forms will aid home fragrance growth over the coming years.
Thanks to Kline for this informative research. Shearer Candles uses research like this to determine our products, scents and portfolio plans for the future. This in turn helps our sales and marketing departments devise plans and strategies for the coming years. I hope you have enjoyed this rather full, and informative blog on Home Fragrance. Please take from it what you need 🙂