Natural Home Fragrance Products Market Size, Share & Trends Analysis Report By Product (Scented Candles, Wax Melts, Essential Oils, Incense Sticks), By Distribution Channel, By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global natural home fragrance products market size was estimated at USD 3.89 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 9.5% from 2024 to 2030. Consumers are becoming more aware of the potential health risks associated with synthetic fragrances, such as allergic reactions, respiratory issues, and hormone disruption. As a result, there is a growing preference for natural alternatives that are perceived as safer and healthier for indoor air quality and overall well-being.

The clean-living movement emphasizes the importance of using natural, non-toxic products in all aspects of life, including home fragrance. Natural home fragrance products are seen as part of a holistic approach to clean living, promoting a healthier indoor environment free from harmful chemicals.

In the wake of financial challenges and the ongoing impact of the pandemic, a significant portion of global consumers, accounting for 22%, are turning to soothing scents to combat distress and anxiety. This preference for calming fragrances reflects a broader trend towards prioritizing mental well-being amidst adversity. Among scent preferences, floral fragrances reign supreme, with 30% of consumers worldwide favoring them for personal care and household products. Following closely are fresh scents, preferred by 24% of consumers, while fruity and citrus scents hold sway with 23% and 22% respectively.

This widespread affinity for natural, unprocessed scents highlights a growing interest in products that offer authentic, nature-derived ingredients or boast heightened freshness. As individuals seek solace and comfort in uncertain times, the allure of these fragrances extends beyond mere olfactory pleasure to encompass emotional support and a sense of tranquility.

Consumers are becoming more aware of the potential health risks associated with synthetic fragrances, such as allergic reactions, respiratory issues, and hormone disruption. As a result, there is a growing preference for natural alternatives that are perceived as safer and healthier for indoor air quality and overall well-being.

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 market.

Product Insights

Based on product, the scented candles held a market with the largest revenue share of 38.4% in 2023. 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.

The wax melts are anticipated to grow at a fastest CAGR of 12.9% from 2024 to 2030. The non-flammable property of wax melts can play a pivotal role in driving their market growth by appealing to safety-conscious consumers. By positioning wax melts as a safe, versatile, and practical alternative to traditional candles, businesses can expand their customer base and drive revenue growth. The safety feature can help build trust and loyalty among customers, resulting in positive brand perception and the increase in the adoption rate of these products.

Distribution Channel Insights

Based on distribution channel, the supermarkets and hypermarkets segment led the market with the largest revenue share of 43.6% in 2023. 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 natural 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 grow with a fastest CAGR of 13.4% during the forecast period. Online distribution channel offers consumers a convenient and easy way to shop for natural 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 natural home fragrance products 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 natural home fragrance products industry in North America held the market with the largest revenue share of 29% in 2023. An increasing number of people in North America have shown a high inclination for aromatherapy. As per the Mayo Clinic in one of its research releases, aromatherapy helps in relieving anxiety and depression, improving the quality of life-mostly for people with chronic diseases, and helps those with sleep distress.

U.S. Natural Home Fragrance Products Market Trends

The natural home fragrance products market in the U.S. dominated the market with the revenue share of 85% of the North American market in 2023. According to the NPD Group, in 2022 nearly 80% of U.S. consumers scented their homes to relax and comfort themselves. Among these consumers, 50% reported using home scents to “relax”, 35% felt more “cozy” using home scents, and 30% used them to “uplift their spirits.

Europe Natural Home Fragrance Products Market Trends

The natural home fragrance products market of Europe held the market with the revenue share of 34.1% in 2023. Europe has stringent regulations regarding the use of chemicals and fragrances in consumer products. The European Union's REACH regulations and the Cosmetics Regulation require companies to adhere to strict guidelines for product safety and ingredient transparency. Natural home fragrance products, which typically contain fewer synthetic additives and comply with these regulations, are perceived as safer and more trustworthy by European consumers. Also, European consumers value quality, craftsmanship, and authenticity in their purchases.

Asia Pacific Natural Home Fragrance Products Market Trends

The natural home fragrance products market of Asia Pacific is projected to grow at a fastest CAGR of 10.9% during the forecast period. 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. In addition, in terms of revenue, in 2023, China accounted for USD 851.0 million in the Asia Pacific market. In addition, according to the L'OCCITANE Group’s annual report in 2021, changing consumer preferences in developing countries are expected to increase spending on premium personal care products such as skincare, scented wax melts, perfume, and hair care, thereby resulting in luxury brands gaining significant market share.

Key Natural Home Fragrance Products Company Insights

Some of the key players operating in the market include S. C. Johnson & Son, Inc.; Reckitt Benckiser Group PLC; The Procter & Gamble Company; and The Estée Lauder Companies Inc.

• S.C. Johnson & Sons Inc. is a manufacturer of home storage, house cleaning, pest control, air care, shoe care, and professional products. Its Glade brand offers different home fragrance products such as sprays, diffusers, scented oils, candles, and wax melts

• The Procter & Gamble Company provides branded consumer packaged goods worldwide. Febreze and Ambi Pur are some of its brands that offer home fragrance products such as sprays, candles, wax melts, plug-ins, and more

Voluspa and Nest Fragrances are some of the emerging market participants in the global market.

• Voluspa is a U.S. based brand that offers candles, diffusers, and sprays. Its products are 100% natural and vegan. They are also free of sulfates, parabens, phthalates, and pesticides

• Nest Fragrances is a luxury home fragrance company. It offers candles and diffusers in its home fragrance category. Its scented candles are crafted using premium wax, which burns cleanly and evenly. Its diffusers are flame free, cruelty-free, and vegan. In addition, they release continuous fragrance for up to 90 days

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 beans. These were available in medium jars, large jars, large tumblers, and melts

• 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 a variety of forms such as plugins, aerosols, and candles

• In November 2021, LUMIRA Co Pty Ltd. released the Botanica fragrance, the third and final scent in their Gardens collection. The Australian Botanic Garden in Mount Annan served as inspiration for this scent. The Botanica Candle, which is available for a limited time and has a burn time of about 80 hours, is the full-size version of this fragrance

Natural Home Fragrance Products Market Report Scope

Global Natural Home Fragrance Products 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 this study, Grand View Research has segmented the global natural home fragrance products market report based on the product, distribution channel, and region.

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Scented Candles

  • Incense Sticks

  • Essential Oils

  • Wax Melts

  • Others

• Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

  • Supermarkets & Hypermarkets

  • Specialty Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • UK

    • France

    • Italy

    • Spain

  • Asia Pacific

    • China

    • India

    • Australia

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • Saudi Arabia

    • South Africa