Luxury segment spurs growth in US home fragrances market

THE US home fragrances market has reached another record growth in 2014 on the back of a strong luxury segment.

 

The sector, which accounts for more than 50% of total market sales, is driving demand for several home fragrance categories, according to a new report from Kline & Company  titled “Fragrances: U.S. Market Analysis and Opportunities.”  

 

Scents such as Praline Pecan Cobbler and Moss and Sea Mist continue to gain a strong following. The luxury candles category recorded double growth in 2014 even as mass-market candle sales slowed down. Among prestige candles, Bath & Body Works is one of the largest and fastest-growing brands. Smaller brands such as Nest, RibbonWick, and Dyptique, which use sleek yet decorative and distinct look to stand out, are fueling demand, however, and generating strong, double-digit growth.  

 

A noticeable trend in 2014 is the use of outdoor scents such as Veranda Garden by L Brand/Bath & Body Works and Nectar by Procter & Gamble’s Febreze as indoor fragrances. A wide range of baked goods and spices, including Baking Cookies by Reckitt Benckiser/Air Wick were also popular.

 

Medium-sized candles dominated 2014 sales. Masculine scents remained on the growth path. 

 

Active diffusers are leveraging growth from previous years to boost market positioning. Power-operated devices, in particular, which feature ease of switch, no spill or burn risks, modern designs, and new continuous-release technology for long-lasting fragrance delivery, are rising in popularity as reflected in nearly 5% growth. Meanwhile, passive diffusers are experiencing a slowdown, with the exception of The Yankee Candle’s brand.

 

Although the majority of mass marketers experienced a decline in 2014, home fragrance oils, wax melts, and fragrance lamps generated high positive growth with the continued expansion of wax melts in mass merchandizers. Large players such as S.C. Johnson with its brand Glade, Procter & Gamble with Febreze, and Reckitt Benckiser through its Air Wick brand, entered the category in late 2013 and 2014.

 

According to Sagar Gehra, senior consultant at Kline, home fragrance has been a part of home décor since the 1990s when sales of candles peaked. 

 

“Nowadays the aesthetic appeal and home décor value continue to be important facets that help marketers stand out and drive product sales across all channels be it prestige or mass. What also helps sell products is creative and giftable packaging ideas that allow consumers to experience the scent while on shelf,” Mr. Gehra added.