Environmental Fragrance Sales Begin to Slow

Even the fast-growing environmental fragrance market is beginning to show signs of burnout.According to Kline & Company, Inc., a Little Falls, NJ-based consulting firm, for the first time in nearly five years, increases in candle sales dropped significantly, down to low single digits after several years of double-digit growth. Total home fragrance sales increased to $2.2 billion at the manufacturers’ sales level in 2000, up by 6.3% from $2.1 billion from 1999. Most noticable, candle sales slowed considerably in 2000, rising by just 4.2%. Sales growth was propelled by the diffusers category and new scented oil entries from mass merchandisers and specialty store marketers, including S.C. Johnson and Bath & Body Works. However, it is believed that this relatively new product form-the scented oil plug-in diffusers-cannibalized sales of other product forms, especially candles.

“Factors influencing sluggish growth include poor weather in the East and Midwest during the fourth quarter, lower traffic levels in retail stores during holiday time, candle recalls and safety warnings influencing consumers, and a maturing candle marketplace,” said Lenka Contreras, an analyst with Kline & Co. According to Ms. Contreras, the recent slowdown in the market will force marketers to look elsewhere for growth, and many are turning to Europe as a potential new market.