Luxury’s Burning Bright in Home Fragrance

What’s hot in home fragrance? Luxury, according to data culled by Kline Group. US home fragrance sales set a record last year, and the luxury segment continues to drive this market, accounting for more than 50% of total market sales, according to Kline’s Home Fragrances: US Market Analysis and Opportunities report.

While mass market candle sales are dimming, sales of luxury candles doubled 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 Diptyque, are 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 are 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’s brand, 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 registered a decline in 2014—with some exceptions. For example, high growth came within the home fragrance oils, wax melts and fragrance lamps category, as the continued expansion of wax melts in mass merchandisers resulted in growth for the category as a whole. Large players, such as SC Johnson (Glade), Procter & Gamble (Febreze), and Reckitt Benckiser (Air Wick), entered the category in late 2013 and 2014.

A noticeable trend in 2014 is that outdoor scents are preferred as indoor fragrances, such as Veranda Garden by L Brand/Bath & Body Works and Nectar by Procter & Gamble’s Febreze, as well as a wide range of baked goods and spices, such as Baking Cookies by Reckitt Benckiser/Air Wick.

Medium-sized candles sold the best in 2014, and masculine scents continue to be a growing trend.