The U.S. home fragrances market records the highest annual growth in the last five years. Increasing by over 3% in 2015, this mature market is driven by leading brands like Yankee Candle and Bath & Body Works, as well as stiff competition—not only among the large market-movers, but also among the independent brands making their presence notable in the industry.
Luxury candles continue to show healthy gains in 2015, driven by the solid performance of premium brands, such as Nest, Virginia, BBW, and Illume, which help this segment shine. Attractive packaging plays a strong role in product presentation, and candles are offered in all types of eye-catching containers, shapes, and sizes, the driving force behind the category’s growth. For spring 2016, the limited edition Corsica line of home fragrances from Nest was a clear standout. Included in the line is a filled multi-wick candle with a gold band on the bottom.
The diffusers category also remains vibrant, primarily driven by active diffusers, which includes Bath & Body Works’ Wallflowers and S.C. Johnson’s Glade plug-ins. Within this segment, both mass and luxury brands have performed well. Bath & Body Works continues to register strong growth driven by its attractive balance between home décor and novelty products. On the other hand, mass brands like Glade and Airwick also record healthy growth due to new product launches and strong product claims.
Wax melts, perceived as safe due to the absence of an exposed flame, continue to enjoy double-digit growth in 2015. The category is boosted by the continued strong performance of luxury and mass marketers, such as Scentsy, S.C. Johnson, and Procter & Gamble, as well as several marketers entering the category, including Reckitt Benckiser. Like candles, the wax melt warmers are also available in various eye-catching shapes and sizes. Scentsy’s decorative “Nest” warmer is unique and adds value to the home’s décor.
From a distribution standpoint, Internet sales continue to heat up as candle consumers forego the mall and purchase their favorite candles online. Sales through the Internet continue to show double-digit growth, accounting for nearly 15% of the total U.S. home fragrances market in 2015.
Both mass and luxury marketers are educating consumers about fragrance with a variety of brand website tools. This trend is set to continue in the future. A presence on social networking sites like Facebook and Twitter has become standard fare in the marketing strategy and an essential way for brand owners to stay in touch with existing and potential customers.
Learn more about this market from our just-published Home Fragrances: U.S. Market Analysis and Opportunities report—an accurate and in-depth analysis of product categories such as candles, diffusers, home fragrance oils, wax melts, fragrance lamps, room sprays, and other specialty products. Featuring an online, interactive database, this report will help you stay on top of the market’s trends and challenges.
By Sagar Gehra, Senior Consultant, Kline Consumer Products
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