Home Fragrance Market Size, Share & Trends Analysis Report By Product (Scented Candles, Sprays, Essential Oils, Incense Sticks, Others), By Type (Mass, Premium), By Distribution Channel, By Region, And Segment Forecasts, 2024 - 2030

Home Fragrance Market Size & Trends

The global home fragrance market size was estimated at USD 11.12 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 9.0% from 2024 to 2030. The increasing awareness and importance placed on creating a pleasant and personalized home environment contribute significantly to the market's expansion. Consumers are becoming more conscious of the ambiance within their living spaces, leading to a growing demand for home fragrance products that enhance and customize the olfactory experience. Moreover, the pandemic has also led to increased hygiene concerns among consumers, which has affected the packaging and delivery of home fragrance products. Companies are implementing new safety protocols, such as contactless delivery and increased sanitation measures, to address these concerns and reassure customers.

Consumers are increasingly concerned about the impact of their purchasing decisions on the environment. As a result, there is a growing demand for natural and eco-friendly home fragrance products. Companies are responding by creating products made from natural ingredients and using sustainable packaging. For instance, in March 2023, Grove Collaborative Holdings, Inc., a top manufacturer of environmentally friendly consumer goods, launched its new Grove Co. Fresh Horizons Limited Edition Collection with popular movie star, Drew Barrymore.

Essential oils are becoming more popular in the home fragrance industry as consumers seek out natural and holistic products. Many people believe that essential oils have therapeutic properties and can help to promote relaxation and wellness. Moreover, consumers are looking for unique and innovative fragrances in home fragrance products. As a result, companies are developing new and interesting scent combinations to differentiate their products in the market. For example, some companies are blending unexpected scents like coffee and leather to create a unique and appealing fragrance profile.

The integration of technology is becoming increasingly prevalent in the home fragrance sector, with a focus on sustainability. In February 2023, Aluxury, a British company specializing in home fragrance, introduced the Nebula Electric Waterless Oil Diffuser. This innovative diffuser is rechargeable and operates on battery power, boasting an impressive 120-hour runtime on a single charge. Its waterless design enables the diffusion of oils without the need for water, eliminating the risk of spills and excessive room moisture.

The business has also been boosted by the increased awareness of house fragrances spread through different media like YouTube, television commercials, and others. For instance, Godrej Aer, an Indian company that provides car, home and bathroom perfumes, introduced a new TVC campaign in 2022 called "If Bathrooms Could Talk" for its Godrej Aer Power Pocket collection of bathroom fragrances. Innovative graphics and animation methods were used to create the TVC, which Creativeland Asia conceptualized, making it aesthetically appealing to draw consumers' attention.

One major factor attributed to the booming industry is consumers' growing preference for local businesses and craftspeople that produce home fragrance products. The Scented Barn, a home fragrance company that sells candles, diffusers, and wax melts, began operations under lockdown and has grown to such an extent that its owner opened a permanent store in Holt, the UK, in March 2023. The company's proprietor crafts each fragrance, and there are over 150 options available for purchase.

Market Concentration & Characteristics

The market is also subject to moderate regulatory scrutiny. When it comes to brands, consumers tend to favor those with appropriate certifications and safety requirements, such as those seen on ASTM (American Society for Testing and Materials) or CLP (Classification, Labelling and Packaging) labels. These certificates attest to the wax melts' testing and chemical composition. Environmentally conscious production practices are ensured by certifications such as the Rainforest Alliance Certified seal, which is applied to labels signifying veganism and cruelty-free production.

End-user concentration is a significant factor in the market since there is a diverse end-user base with varying degrees of concentration. To remain relevant to the growing younger customer base, several businesses in the market have been making significant changes to their marketing strategies. Newell Brands, for instance, which owns Yankee Candles, strategically shifted 80% of its marketing budget to social media and e-commerce in 2022, recognizing the importance of connecting with the modern audience.

The market has experienced a moderate degree of innovation, with the introduction of unique fragrance blends, eco-friendly materials, and creative designs. While traditional scents remain popular, there is a growing trend towards personalized and experiential products, driving some innovation within the industry.

Limited M&A activities has been witnessed in the market, with consolidation efforts not as prevalent. The industry is marked by the entry of smaller players, contributing to a competitive landscape where smaller businesses actively participate, adding diversity to the market dynamics.

The impact of regulation on the market is on a lower side as the candles and scents are not directly affecting human health. The International Fragrance Association (IFRA) still has few guidelines set up for the manufacturers operating in the market.

Furthermore, the market offers a diverse range of substitutes, including scented candles, essential oil diffusers, and plug-in air fresheners. Consumers can easily find alternative products that cater to their preference for fragrant home environments, contributing to a competitive landscape within the home fragrance industry.

Product Insights

The sprays segment accounted for a share of 33.8% of the global revenues in 2023. Sprays are frequently used to neutralize odors, establish a tranquil ambiance, infuse a personalized touch into a space, and elevate both mood and productivity. They are easy to use and can quickly freshen up a room with a burst of fragrance. The demand for home fragrance sprays has remained steady over time, with some fluctuations due to changing consumer preferences and market trends.

The scented candles segment is anticipated to grow at a CAGR of 10.0% from 2024 to 2030. Scented candles offer a wide variety of fragrance options, catering to different consumer preferences. There are floral scents, fruity scents, spicy scents, and many others, allowing consumers to find a scent that they enjoy and that suits their personal taste. Moreover, the increasing popularity of scented candles as a gift item, especially during the holiday season. They are often given as hostess gifts, housewarming gifts, or as a small token of appreciation. This has contributed to the overall demand for scented candles.

Type Insights

Mass home fragrance products dominated the global market in 2023, as these products are popular due to their affordability and accessibility, catering to a broader consumer base. The lower price points make these products attractive to a larger demographic, aligning with the preferences of price-conscious consumers. Additionally, mass-market brands often employ familiar and universally appealing scents, contributing to their widespread popularity and market dominance. In May 2022, M&S Home introduced a collection featuring candles, reed diffusers, and room sprays, with prices commencing at just USD 9.5, emphasizing the affordability of their newly launched range.

The luxury home fragrance market is flourishing, offering a wide array of scents spanning various price ranges, from affordable options to high-end selections exceeding several hundred dollars. This surge in demand reflects a shift where scented products have gone beyond mere luxury, evolving into a trend that turns ordinary spaces into personalized and indulgent sanctuaries. The market has as a result seen the emergence of several luxury and high-end fragrance companies due to the rising demand for premium products.

Distribution Channel Insights

The supermarkets and hypermarkets segment dominated the global market in 2023 with a revenue share of 39.5%. This channel reigns due to its extensive reach, offering a one-stop-shop convenience for consumers. The high foot traffic in these retail giants provides broad exposure to a diverse customer base, making them ideal platforms for the widespread distribution and accessibility of home fragrance products. In August 2023, popular snack company Little Debbie in collaboration with fragrance brand, Goose Creek launched snack cake candles. The products were made available in all Walmart stores across the U.S.

The online channel segment is expected to witness strong demand for home fragrances and is expected to grow with a CAGR of 10.3%. The online distribution channel offers consumers a convenient and easy way to shop for home fragrance products. With the increase in online shopping, product launches, and the convenience it provides, it is expected that online distribution channels will continue to play a significant role in the home fragrance industry. In April 2023, Friday Collective unveiled its scented candle collection, making it available at Target stores both online and offline, as well as through its official website.

Regional Insights

The Europe home fragrance market accounted for a share of 34.0% of the global revenues in 2023. Consumers in Europe are becoming more health-conscious and are looking for products that can provide a sense of well-being. The UK home fragrance market was valued at USD 685.5 million in 2023, driven by the rising consumer demand for the natural and ecofriendly home fragrance products. Home fragrance products that contain natural ingredients such as essential oils are seen as a healthier alternative to synthetic fragrances. Germany home fragrance industry size was valued at USD 507.5 million in 2022. The increasing urbanization in Germany has led to an increase in small living spaces, such as apartments and condos, where home fragrance products are used to create a pleasant and relaxing atmosphere.

UK home fragrance market

The home fragrance market in the UK is expected to grow at a CAGR of around 8.5% from 2024 to 2030. This is due to increasing consumer demand for personalized and immersive sensory experiences in domestic spaces. Additionally, the trend of premiumization in the region will drive growth by elevating consumer expectations, emphasizing quality ingredients, and offering exclusive, upscale fragrance options.

The Asia Pacific home fragrance market is projected to grow at a CAGR of 10.3% from 2024 to 2030. The regional market has been fueled by the rapid rise of emerging economies such as India, China, and Australia. Moreover, in many countries of the Asia Pacific region, home fragrance products are deeply rooted in culture and tradition. For example, incense sticks and scented oils are commonly used in religious ceremonies and rituals.

China home fragrance market

The home fragrance market in China was valued at USD 851.0 million in 2023, and is propelled by the rising awareness of wellness, urban pollution concerns, and a preference for premium lifestyle products among consumers.

India home fragrance market

The home fragrance market in India is projected to grow at a CAGR of 11.8% from 2024 to 2030. The industry is flourishing as consumers seek sensory experiences in their homes, driven by a desire for personalized ambiance and an appreciation for diverse cultural aromas.

Key Companies & Market Share Insights

The home fragrance market is characterized by the presence of several well-established players such as Reckitt Benckiser; Procter & Gamble; Scentair Technologies, LLC; Bath & Body Works Direct Inc, S. C. Johnson & Son, Inc.; Newell Brands; and AT-AROMA Co., Ltd. These players account for majority of the market share in the global market. Diverse product portfolios and a strong presence in major economies across the globe are the key attributes of these leading players. Moreover, the home fragrance market comprises a significant number of regional or domestic players.

Recent Developments

• In October 2023, Newell Brands Inc.’s The Yankee Candle Company, Inc. launched two invigorating scents, Silver Sage & Pine and White Spruce & Grapefruit, in various sizes. Silver Sage & Pine exudes the aroma of Christmas trees with clary sage and pine needles, accentuated by leather, cedarwood, and amber. Meanwhile, White Spruce & Grapefruit combines citrus fruits, fir needles, and vanilla bean. These were available in medium jars, large jars, large tumblers, and melts.

• In August 2023, The Procter & Gamble Company's Febreze introduced its Mood Collection, which consists of three luxury fragrances intended to set different moods in each space. The three fragrances in the new collection are Romance & Desire, Soothe & Restore, and Refresh & Energize. In honor of the release, Febreze collaborated with three emerging musicians to create songs that go well with each of the three new scents in the Mood Collection.

• In April 2022, S. C. Johnson & Son, Inc.’s Glade brand launched its Coastal Sunshine Citrus fragrance. The new fragrance features citrus scents that help brighten up the mood and energize the space. The scent was made available in variety of forms such as plugins, aerosols, and candles.

Home Fragrance Market Report Scope

Global Home Fragrance Market Report Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the home fragrance market on the basis of product, type, distribution channel, and region:

• Product Outlook (USD Million; 2018 - 2030)

  • Scented Candles

  • Sprays

  • Essential Oils

  • Incense Sticks

  • Others

• Type Outlook (USD Million; 2018 - 2030)

  • Mass

  • Premium

• Distribution Channel Outlook (USD Million; 2018 - 2030)

  • Supermarkets and Hypermarkets

  • Specialty Stores

  • Convenience Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Million; 2017-2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central & South America

    • Brazil

    • Argentina

    • Colombia

  • Middle East & Africa

    • Saudi Arabia

    • UAE

    • South Africa