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Market Overview

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The global home fragrance market reached a value of USD 9.15 billion in 2022 and is projected to expand to USD 11.94 billion by 2028, registering a CAGR of 4.54% during the forecast period. Home fragrances serve the dual purpose of creating a pleasant ambiance and masking unpleasant odors. There are various types of home fragrance products available, including scented candles, reed diffusers, room sprays, essential oils, wax melts, incense sticks, cones, as well as other items like potpourri, sacks, sachets, and scented ceramics. These products come in different colors, designs, and forms, enhancing the aesthetic appeal of homes and contributing to people’s well-being. Among these, the scented candle segment is experiencing rapid growth, emerging as one of the fastest-growing segments in the home fragrance industry.

Customization and emotional appeal play a significant role in consumers’ purchasing decisions when it comes to candles. Personalizing candles has become increasingly popular, with consumers seeking products that align with their preferences and allowing them the freedom to design and customize candles according to their own choices. This trend presents opportunities for home fragrance market players to introduce new products tailored to consumers’ demands.

Sustainability is a major concern for modern consumers, leading them to opt for eco-friendly choices. Consequently, there is a growing preference for eco-friendly packaging for home fragrance products, utilizing natural and organic materials such as jute bags and corrugated hemp boxes. The adoption of sustainable packaging practices supports the overall growth of the home fragrance market.

Aromatherapy has gained popularity due to its ability to alleviate stress, depression, and anxiety while promoting relaxation and improving sleep quality. Consumers are increasingly recognizing the benefits of incorporating aromatherapy into their lives, further driving the demand for home fragrance products.

The rise of e-commerce has significantly contributed to the growth of the home fragrance market. With increasing internet penetration and rising disposable incomes, consumers are turning to online platforms such as Amazon, eBay, and Shopify to purchase home fragrance products, including luxury candles, reed diffusers, and room fresheners. E-commerce retailers offer artistically designed home fragrances, particularly candles with intricate shapes and unique craftsmanship, capturing consumer interest and boosting the global industry.

However, the use of certain fragrances can pose health risks. Approximately one in three people report experiencing health problems when exposed to fragrance products, including headaches, asthma attacks, hay fever, nausea, migraines, seizures, breathing difficulties, rashes, congestion, and dizziness, according to Healthdirect. While inhaling diffused essential oils is generally safe for most people, some individuals may experience asthma attacks or severe lung infections, known as pneumonitis, due to their sensitivity to the fumes. These potential health risks are expected to hinder the growth of the home fragrance market during the forecast period.

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Market Segmentation

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The market is segmented based on various factors, including product, form, distribution channel, and geography.

Segmentation by Product
Candles
Room Sprays
Reed Diffusers
Essential Oils & Wax Melts
Incense Sticks & Cones
Others

Segmentation by Form
Liquid
Semi-Solid
Solid

Segmentation by Distribution Channel
Supermarkets & Hypermarkets
Convenience Stores
Online
Others

Segmentation by Geography
North America – US, Canada
Europe – Germany, France, UK, Italy, Spain
Asia-Pacific – China, Japan, India, South Korea, Australia
Latin America – Brazil, Mexico, Argentina
Middle East & Africa – South Africa, GCC

In 2022, the candle segment emerged as the dominant force in the global home fragrance market, capturing over 37% of the market share. Scented candles typically consist of a blend of natural and synthetic fragrances. These fragrances can be derived from essential oils or synthetic aroma chemicals. Candles have transitioned from being a necessity to a luxury item used for enhancing homes. While they were initially simple in design and used solely for lighting purposes, they now fulfill the dual roles of providing fragrance and serving as decorative elements. Scented candles have gained popularity for their ability to introduce fresh and enticing scents to consumers. This particular segment is projected to generate an additional revenue of USD 1.24 billion during the forecast period, experiencing a substantial growth rate of 36.43% by 2028.

In terms of product forms, the liquid home fragrance segment held the largest market share in 2022. This category includes products such as essential oils and room sprays. Liquid home fragrance products are composed of various aroma compounds, fixatives, and solvents. Essential oils, on the other hand, are highly concentrated hydrophobic liquids containing volatile chemical compounds extracted from plants, making them easily evaporated at normal temperatures. The liquid form segment is expected to generate an additional revenue of USD 1.5 billion during the forecast period.

Among distribution channels, supermarkets and hypermarkets emerged as the dominant players in the global home fragrance market, with a valuation exceeding USD 4 billion in 2022. These retail outlets offer a wide range of products, including scented candles, reed diffusers, room sprays, and incense sticks and cones. Major market players have recognized the potential in this channel and have expanded their offerings in supermarkets and hypermarkets. Effective and secure distribution methods play a crucial role in determining sales and market share for home fragrance brands. In Western countries, prominent retail channels such as Walmart, Costco, Walgreens, Sainsbury’s, and Morrisons serve as major sources of sales for home fragrance products.

North America emerged as the dominant region in the global home fragrance market in 2022, with a valuation surpassing USD 3 billion. The region’s strong consumer preference for sustainable and natural products, increasing disposable income, and growing emphasis on overall well-being contribute to the demand for home fragrance products. The United States and Canada are key players in this market, with container and jar candles being particularly popular among American consumers. Candles are increasingly being purchased not only for their aromatic qualities but also for their aesthetic appeal and role in activities such as stress reduction and relaxation.

Europe accounted for a 30% share of the global home fragrance market in 2022. The region holds significant importance in the candle industry, as it constitutes approximately two-thirds of worldwide candle imports. Candles play a crucial role in promoting wellness at home in Europe. On the other hand, the APAC home fragrance market is witnessing the highest compound annual growth rate (CAGR) during the forecast period. Key countries in the region, including China, India, Japan, Australia, and South Korea, are contributing to this growth. The increasing inclination of consumers towards investing in aesthetically pleasing home fragrances is expected to drive the home fragrance industry in the APAC region.

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Competitive Landscape

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The global home fragrance market exhibits a high level of fragmentation, and this trend is expected to intensify in the forecast period. Numerous global and domestic vendors operate across different regions. Larger organizations with substantial budgets prioritize pricing flexibility, customized solutions, and approach flexibility. In contrast, smaller organizations may not emphasize reporting as significantly and prioritize pricing above expertise and testimonials. Vendors compete based on brand value, customization capabilities, pricing, skilled workforce, and technological prowess.

Leading players in the global home fragrance market include Procter & Gamble, S.C. Johnson & Son, Godrej Consumer Products, Reckitt Benckiser Group, and Newell Brands. These key market players employ various strategies such as product launches, mergers, acquisitions, and collaborations. Mergers and acquisitions are prevalent in the industry as companies seek to expand their offerings and establish comprehensive market positions. A notable trend among vendors in a consolidating landscape is the focus on merging two platforms, leading to resource allocation towards integration rather than innovation. Product innovation and technological advancements have augmented the benefits associated with home fragrance products. Companies are introducing new and advanced products to enhance their portfolios and meet the evolving demands of the industry.

Key companies profiled in this report include Procter & Gamble, S.C. Johnson & Son, Godrej Consumer Products, Reckitt Benckiser Group, Newell Brands, Henkel, Faultless Brands, Beaumont Products, ILLUME, GALA GROUP, Voluspa, Seda France’s, NEST, The Estée Lauder Companies, Bougie et Senteur, Circle E Candles, Esteban, Broken Top Brands, Bridgewater Candle Company, The Copenhagen Company, Pure Source India, Asian Aura, Odonil, ScentAir, P.F. Candle Company.

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Key Questions Answered

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How large is the home fragrance market?

The global home fragrance market was valued at USD 9.15 billion in 2022 and is expected to reach USD 11.94 billion by 2028.

What is the growth rate of the global home fragrance market?

The global home fragrance market is projected to grow at a compound annual growth rate (CAGR) of 4.54% from 2022 to 2028.

Which region dominates the global home fragrance market share?

North America dominates the global home fragrance market, with revenue exceeding $3 billion in 2022.

What are the significant trends in the home fragrance industry?

Some significant trends in the home fragrance industry include an increasing preference for personalized scented candles, a growing focus on sustainability, and a rise in the popularity of aromatherapy.

Who are the key players in the global home fragrance market?

The key players in the global home fragrance market include Procter & Gamble, S.C. Johnson & Son, Godrej Consumer Products, Reckitt Benckiser Group, and Newell Brands.