Written by: Dana Kreutzer, Analyst, Consumer Products
The home fragrances market is thriving, driven by new aesthetically pleasing products, personalization, natural ingredients, and, more importantly, the creation of new companies and multiple acquisitions in 2016.
Newell Brands officially enters the market, with the completion of its merge with Jarden Corporation, the parent company of Yankee Candle. Newell Brands also shows a further focus in growing its home fragrance portfolio by announcing the acquisition of Smith Mountain Industries, a provider of historically fast growing brands, such as WoodWick and RibbonWick. Thymes and DPM Fragrance also merge to create CURiO, a new platform to market products under the core brands of Aspen Bay Candles, Capri Blue, and Thymes, while investment firms The Carlyle Group and Centre Lane Partners join forces to combine the PartyLite and Candle-lite brands under the umbrella of Luminex Home Décor & Fragrance. Home fragrance pioneer Harry Slatkin is at the helm of this new company, which should show great improvement under his guidance.
In addition to the buzz of acquisitions, let’s take a look at some other key highlights from our ongoing market analysis:
- HoMedics enters the market with the launch of its Ellia brand, marketing diffusers and essential oils that contain calming and therapeutic properties. Offering more than 20 scents, the brand is already present in key retailers, such as Bed Bath & Beyond and Walmart.
- Customization is a noticeable marketing trend during the holiday season to give home fragrance products a more giftable and unique appeal. Leading marketers like Yankee Candle and Bath & Body Works promote their holiday candles with displays that allow consumers to customize their own holiday gifts.
- Consumers’ interest in safer products made with natural ingredients is increasing across multiple markets, and companies have taken notice. In 2015, Burt’s Bees launched a collection of soy candles with select retailers. In 2016, Gwyneth Paltrow launches her first candle under her Goop brand, which is expected to become part of a seasonal collection of non-harmful fragranced candles.
- Home fragrance brands that also have their own retail stores, such as Diptyque, Jo Malone, Muji, Rituals, and Sabon, benefit by marketing a variety of luxury items across the categories of beauty, home, and gifts, and all of these retailers expand their store count in the United States in 2016.
To learn more about what factors are driving purchases of home fragrances and which brands are making waves in the market, be sure to explore our upcoming Home Fragrances: U.S. Market Analysis and Opportunities study. Expected to be published during spring 2017, this report will focus on market trends, dynamics, challenges, and business opportunities in today’s marketplace.