High-End, Novel Home Fragrance Is In Demand

Consumers opting for high-involvement wax melts transform the total category sales into the fastest growing within the 2011 home fragrances market, uncovers recently published Home Fragrances: U.S. Market Analysis and Opportunities report by global consulting and research firm Kline & Company. Additionally, sales for premium-priced home fragrance products rose just over 4%, in contrast to the decline seen in mass market products.

Scented candles – the cornerstone of the home fragrance market – posted 3.3% growth in 2011. With little true product innovation, growth in sales was fuelled by premium-priced candles available in specialty and department stores, as well as through websites like candleoffmain.com and candleluxury.com.

More unexpected developments within the home fragrances market are seen in 2011. While diffusers and room sprays have been slowly gaining market share in recent years, the introduction of lower priced products resulted in the diffusers’ market suffering a rare decline.

The category plunge would have been greater if not for the introduction of less expensive, visually colorful alternatives, such as Air Wick’s Flip & Fresh and Febreze’s Set & Refresh. The successfully simpler look of these products combined with aggressive advertising strategies paid off and piqued consumers’ interest. Similarly, long-lasting fragrance claims, such as Bath & Body Works’ Scentportable, contribute to the category’s growth by offering consumers overt value for the money.

Marketers’ attention also tended to shift slightly away from diffusers to car-interior fresheners causing additional declines in sales in the former category. Simmerings followed a similar path as manufacturers replaced them with increasingly popular wax melts. The upshot of this product mix shift resulted in 50% increase in sales in 2011, boosted further by rapid growth of the direct sales company Scentsy. With warmers in the total sales mix, Scentsy has achieved revenue growth in the high triple-digits each year since the company’s founding.