After outstanding double-digit growth in 2020, the home fragrances market is poised to continue outpacing its pre-pandemic performance, with all-channel retail sales anticipated to maintain strong growth in 2021, according to Kline’s recently published Home Fragrances USA. Candles will be driving much of the growth for the next few years, as consumers will continue to work from home and place value on surrounding their home with scent. Existing trends will continue to reign, with premium products and extensive brand portfolios making an impact on the market.
In 2020, the market saw a rise in premium-positioned brands such as Nest, Trapp, and LAFCO as consumers proved to be less price-sensitive. Instead, they valued vessel appearance, product quality, and overall brand image and were willing to invest in products that transformed their homes into a sanctuary of wellness. These consumer habits are expected to continue into 2021 and beyond, despite consumers attempting to return to normal, pre-pandemic activities. Otherland, for example, utilizes its social media platforms to develop a relationship with consumers and continues to launch new scents and product formats in line with its target audience’s demands. Other premium brands are using similar strategies to continue appealing to consumers despite the anticipated change in behavior due to advancements in COVID-19 vaccine distribution.
Another rising trend will be the diversification of brand portfolios as candle-focused brands expand into home fragrances categories such as diffusers, as well as other markets such as beauty and personal care. These brands, such as Gibson & Dehn, are recognizing the opportunity to become experts in fragrance and its ancillary categories. Premium brands, like Apotheke and Homesick, have looked to partner with Pura in the active diffusers segment, bringing their hero fragrances to consumers in a new format. Alternatively, some brands are bringing their hero scents to fine fragrance or body care, in hand cleansing, body wash, or body lotion formats. This allows for consumers to wear their favorite home fragrance, and for many brands, is a natural product extension. These new collections will allow for many home fragrance brands to build upon their 2020 growth and continue to excite consumers in the future.
As 2021 carries onward, the market for home fragrances is well-poised to continue growth, especially for innovative, premium brands establishing a strong brand image. Our recently published Home Fragrances USA report breaks down the market by candles, diffusers, room sprays, and wax melts/oils with a future view to 2025. It also reveals the latest key trends, developments, brand activity, and business opportunities in this dynamic space. For a brief look inside, request a fact sheet.