Candle Sales Were Flat in 2002

Overall home fragrance sales remained essentially the flat in 2002, however there was a significant shift in category performance, according to according to Kline & Co.’s, Little Falls, NJ, “Home Fragrances USA 2002” report. Candles and diffusers drove market growth for the home fragrance market over the past five years, averaging 14% and 8%. But Kline reported sales for these stalwarts fizzled in 2002, leaving the top of the market completely flat.

“Marketers that were focused only on candles have been forced to expand to other categories in order to compensate for slipping sales,” said Lenka Contreras, group director, Kline’s Consumer Products Practice.

Marketers also expanded their distribution channels. Companies such as Yankee Candle and Blyth Industries’ Colonial Candle at Home looked beyond specialty stores and their own outlets and found growth by selling their products in retailers like Bed, Bath & Beyond and Linens ‘N Things.

The good news is that specialty room products and potpourri both saw respectable growth in 2002, offsetting other home fragrance losses. Room sprays also rebounded, growing 5.6% after two straight years of double-digit declines. This upturn was stimulated by new product launches in the mass market segment, including Glade’s Press ‘N Fresh products and Airwick by Wizard Click spray.

Other promising new product introductions that should boost industry sales in 2003 include S.C. Johnson’s Oust air sanitizer, an aerosol that is said to kill 99.9% of odor-causing germs in the air, according to Kline. Early in 2003, Reckitt Benckiser introduced Neutra Air, a similar product sold under the Lysol brand.

“These new product variations blur the line between room sprays and household cleaning products, and we can probably expect to see more products like this that have cleaning benefits and provide room-freshening scents,” Ms. Contreras said.