Home Fragrance Market Size, Share & COVID-19 Impact Analysis, By Product Type [Candles (Unscented and Scented), Room Sprays, Reed Diffusers, Essential Oils, and Incense Sticks], and Distribution Channel (Online and Offline), and Regional Forecast, 2020-2032

The global home fragrance market size was USD 22.89 billion in 2019 and is projected to reach USD 94.39 billion by 2032, exhibiting a CAGR of 5.55% during the forecast period.

Candle and home fragrances are progressively gaining more traction as people give more importance to the maintenance and enhancement of their household. Some of the positive characteristics of the usage of the product are it removes or decreases unpleasant smells, boosts energy, improves mental focus, and assists in bettering the immune system. The thriving growth of the spa industry has a significant contribution to the increasing demand as it is regularly used for making their clients feel relaxed and reducing their stress. For instance, according to the International Spa Association data, the spa industry is continually growing and achieved revenue of USD 17.5 billion in 2018 which rose from 17 billion compared to the previous year.

Shortage of Labor and Disruption in Import-Export Activities amid COVID-19 to Restrain Growth

The outbreak of the novel coronavirus has hurt the candle and fragrance market, owing to the implementation of lockdown and social distancing regulations. This has led to a shortage of labor that has resulted in reduced production volume and high cost of the product. For instance, according to the Economic Times data in May 2020, worker shortage is the biggest difficulty faced by the FMCG sector. Also, Godrej Consumer Product Ltd declared that it is requesting the government to bring back migrant workers by offering safe transportation and incentives. Additionally, Covid-19 has drastically reduced the import and export of goods and raw materials for domestic and international regions which is turning out to be a hampering factor for the production and consumption rate.

HOME FRAGRANCE MARKET LATEST TRENDS

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Increasing Adoption of Innovative Candles and Smart Home Fragrance to Favor Market Growth

Manufacturers are increasingly focusing on the production of innovative home fragrance devices that can be controlled using a smartphone. This presents an opportunity for manufacturers to develop advanced products that will drive market growth during the forecast period.  For instance, in November 2019, Godrej introduced its AER Smart Matic, which is a Bluetooth-enabled automatic fragrance diffuser for use of offices, hotels, households, and others. It can be controlled by a smartphone application that includes attractive features such as the ability to switch on and off, instant spray, and refill/low battery alerts. Additionally, the escalating production of candles with attractive-looking shapes, designs, and various types of scents is expected to boost product demand.

DRIVING FACTORS

Increasing Presence of Youth Population to Favor Growth

The youth population across the globe occupies a large percentage of global employment that is anticipated to have a positive impact on growth. This is attributed to them renting and purchasing apartments and houses on a large scale. For instance, according to the data published by UNICEF in October 2019, South East Asia is projected to be the largest youth labor force having around 1,00,000 people joining the workforce daily. Additionally, a large number of brand-manufacturing products targeting the youth-specific population, in terms of incorporating technology or coming up with attractive looks and designs, is expected to play a crucial role in aiding the candle and home fragrance to gain traction.

Rising Residential Sector to Augment Growth

The increasing construction of new homes resulting in embracing product launches across the globe has a positive influence on gaining more traction. For instance, according to the United States Census Bureau, in November  2020, the United States had 1,413,000 housing completions, while 1,415,000 housing commencements. Additionally, the rising popularity of short-term renting home services such as Airbnb, HomeToGo, FlipKey, and others that provide rental homes to people is assisting in increasing the demand for the products.

RESTRAINING FACTORS

Allergic Reaction to Individuals with Health Complications to Hamper Market Growth

The rising number of people with health complications related to lung issues or diseases such as Asthma, Chronic Obstructive Pulmonary Disease, Pneumonia, and others have resulted in an allergic reaction and negative impact on their health. This is acting as a restraining factor for the home fragrance market growth.

HOME FRAGRANCE MARKET SEGMENTATION

By Product Type Analysis

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The Candle Segment is Likely to Dominate

Based on product type, the market is fragmented into candles, room sprays, reed diffusers, essential oils, and incense sticks.

The candle segment is estimated to be the leading segment owing to the large demand for candles in traditional and spiritual practices. Similarly, the popularity of the usage of scented candles as a home fragrance is expected to further boost the consumption of this segment.

Based on candles, the market is bifurcated into unscented and scented. Unscented is projected to be the greater segment on account of the product being largely used as a source of light, especially in the rural places of underdeveloped and developing countries across the globe.

The scented segment is expected to showcase a robust presence as people are becoming more aware of the various positive attributes of the use of the product, including making people feel relaxed, and energized, and helping to boost brainpower.

Room sprays, reed diffusers, essential oils, and incense sticks have demonstrated significant growth in the market owing to their ability to fill the room with fragrance in a short amount of time and their ability to diffuse the amount of scent as per the user's requirement. 

By Distribution Channel Analysis

Offline Segment Holds the Highest Market Share

By distribution channel, the market is divided into offline and online.

The offline segment is estimated to be the dominant due to the presence of a wide variety of candles and home fragrances under one roof which makes it a more desirable choice to a large number of consumers compared to offline shops.

The online segment is expected to showcase substantial growth owing to the increasing adoption of smartphones and the rising number of busy working professionals who prefer using an online channel to help save their time.

HOME FRAGRANCE MARKET REGIONAL INSIGHTS

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Europe is estimated to exhibit a considerable presence in the home fragrance market owing to the increasing spending on home care and maintenance products, including fragrances for the home. For instance, according to the IKW 2019 Annual Report, Germany is estimated to generate sales revenue of around USD 21.63 billion on its beauty and home care products. Additionally, the usage of candlelight as part of the tradition in countries of this region is expected to escalate the demand for these fragrances. For instance, according to the Ministry of Environment and Food Denmark data in November 2018, Denmark had the highest consumption of candles with 39% of its population using candles daily, as they embraced the adoption of candles as part of their tradition.

The North American market stood at USD 8,430 million in 2019 and is the dominating region. The candle industry still retains a robust presence in this region. Additionally, the candle products are popularly used by consumers to make their room feel cozy and comfortable in dating scenarios. For instance, according to the National Candle Association data, in 2018, the United States candle sales experienced a growth of 3.2% which is evaluated to be around USD 1.2 billion. Additionally, the rising popularity of the usage of the product, especially among luxurious homeowners in this region, has helped to upsurge the consumption rate of the candle and home fragrance product. For instance, according to the data issued by USA Today in November 2018, the United States is estimated to have around  400,702 homes that are worth one million dollars.

Asia Pacific is projected to experience significant growth in the forthcoming years due to the large religious festival such as Diwali has propelled the consumption of candles in the region. For instance, according to the data issued by India Today in November 2018, states that like India, ten countries celebrated Diwali, out of which five countries are from Asia Pacific region. These countries include Indonesia, Malaysia, Nepal, Sri Lanka, and Singapore. Additionally, domestic brands such as Nyassa, Lalique, Soohyang, and others are generating more traction among consumers of the region by offering a wide range of attractive products. For instance, Lalique offers multiple scented candles such as the Macallan Angels' Share, The Night, The Volcano, The Snow, and others that have their unique fragrance.

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The Middle East & Africa and South America are likely to showcase a substantial rise owing to the developed countries such as Qatar, United Arab Emirates, Israel, and others, maintaining a proper hygienic lifestyle. Additionally, the rising urbanization in South America is leading to an increase in the consumption of candles and home fragrance. For instance, according to Trading Economics, 86.82% of the population in Brazil resides in urban areas.

KEY INDUSTRY PLAYERS

Key Players Moving Towards Organic Based Product to Amplify their Market Positions

The increasing number of manufacturers drifting towards the production of natural/organic based candle and home fragrance products, which are less toxic to humans, is likely to have a positive impact in generating more traction. For instance, Mysore Chandan comes up with Sandalwood Organic Room Spray that is less harmful than chemical-based products and has the goodness of sandalwood and patchouli to help warm the heart, along with the freshness of orange.

LIST OF KEY MARKET PLAYERS PROFILED:

• The Procter & Gamble Company (Cincinnati, Ohio, US)


• The 3M Company (Saint Paul, Minnesota, USA)


• S. C. Johnson & Son, Inc. ( Racine, Wisconsin, USA)


• Reckitt Benckiser Group plc (Slough, UK)


• Newell Brands (Atlanta, Georgia, USA)


• Circle E Candles (Houston, USA)


• Esteban Paris (France)


• Broken Top Candle Company (Oregon, USA)


• Bridgewater Candle Company (South Carolina, USA)


• The Copenhagen Candle Company LTD (HA, United Kingdom)

KEY INDUSTRY DEVELOPMENTS:

• September 2019 – Mark Buxton announced its collaboration with Norlan for the production of the three new room fragrances.


• August 2019 – Givaudan announced the acquisition of a brand called Fragrance Oils. This development is expected to reinforce its presence in the U.K., South East Asia, and Africa.   

REPORT COVERAGE

An Infographic Representation of Home Fragrance Market

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The home fragrance market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, end-users, and product types. Besides this, the report offers insights into the home fragrance market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several key factors that have contributed to the growth of the advanced market over recent years.

Report Scope & Segmentation