Luxury Drives US Home Scent Market

Accounting for more than 50% of total market sales, the luxury segment continues to drive the US home fragrances market market, according to Kline's Home Fragrances: U.S. Market Analysis and Opportunities report.

While mass-market candles sales are dimming, sales of luxury candles doubled in growth in 2014. Bath & Body Works is one of the largest and fastest growing brands among prestige candles, but smaller brands, such as Nest, RibbonWick, and Dyptique are the ones igniting the market with strong, double-digit growth and standing out through distinctive, decorative visuals and high tech identity.

“Home fragrance has been a part of home decor since the 1990s when the sales of candles peaked,” commented Sagar Gehra, a senior consultant at Kline. “Nowadays the esthetic appeal and home decor value continue to be important facets that help marketers stand out and drive product sales across all channels be it prestige or mass. What also helps sell products is creative and giftable packaging ideas that allow consumers to experience the scent while on shelf.”

Building upon previous years' growth, active diffusers are warming up to become new gems on the market. With some exceptions, such as the impressive growth of The Yankee Candle brand called Fragrance Spheres, passive diffusers are giving way to power-operated devices under the active segment that increased by nearly 5%. The ease of switch, no risk of spill or burn, modern designs, and new continuous-release technology promising long-lasting fragrance delivery is a turning point behind this migration.

The majority of mass marketers register a decline in 2014—with some exceptions. For example high positive growth came within the home fragrance oils, wax melts, and fragrance lamps category as the continued expansion of wax melts in mass merchandisers leads to strong growth for the category as a whole. Large players, such as S.C. Johnson with its brand Glade, Procter & Gamble with Febreze, and Reckitt Benckiser through its Air Wick brand, enter the category in late 2013 and 2014.