About The Home Fragrance Industry
If the eyes are the window to the soul, the nose might be the pathway to the consumer’s wallet. Few can resist a product that smells good. Consequently, the environmental fragrances market has progressed in leaps and bounds during the past decade. Consumers are looking for fragrances to create an ambiance, and ultimately individualize their homes.
Last year, mass market environmental home fragrance totaled over $5.1 billion, up from $1.27 billion, the prior year, with a forecast of 3% annual increase over the next 5 years, reaching $6 billion by 2012.
"On the mass-market level, this market is equal in size to that for household cleaning products. To eliminate and control odors remains a primary need among consumers, and over the last five years, they have demanded more from home fragrance products. Clearly, innovation has propelled the growth of
the overall market," comments Tatjana Meerman, Publisher of Packaged Facts. "Consumers have fallen in love with technological gadget diffuser devices as well as the more passive reed diffusers. As a whole, the Air Fresheners segment has seen the most innovation."
“Customers are attracted to this market for several reasons,” says Kimberly Beck, VP of marketing for Endar, Inc. “Fragrance serves multiple purposes such as enhancing, enchanting, setting moods and/or masking odors; it maybe an indulgent reward or a gift for others.”
“With the recent trend of “Home as a Haven”, we seem to be embracing a more fragrant lifestyle. We see many household products such as laundry care and cleaners available in a more wide range of fragrances and even aromatherapy scents, which allow us to “layer” scents in our homes.
HOME FRAGRANCE FACTS Scent has the longest memory and is the most powerful emotional motivator
2007 Home Fragrance sales were $5.1 billion. Industry experts forecast a 3% annual increase over the next 5 years reaching $6 billion in 2012.
Growth is directly related to Home Air Fresheners, which accounted for 45% of the market, up from 36% in 2003.
Driven by consumers’ desire for their homes to smell good, approximately 80% of all adult Americans purchased some type of air care product in the past year, including candles and candle accessories, sprays, plug-ins, room fresheners, potpourri, air fresheners, air purifiers and more.
A tremendous shift has occurred among home fragrance consumers, as people realized that having a pleasant smelling home is not just for holidays or special occasions anymore. People expect their homes to smell great year around, thus buying and using home fragrance products has become an everyday necessity for more Americans.
Women aged 25-34 are the prime target market for home fragrance. While the typical consumer spends $266 per year on all home fragrance products, women ages 25-34 spend nearly 30% more than the average or $340 per year.
The highest reported usage of air fresheners is from those who are both busy and likely on a budget: working women, single moms and teen-dominated families. They may have less time to clean but nevertheless want a fresh smelling home.
According to Information Resources Inc., The U.S. mass air freshener market was worth $979.1 million in 2006, which reflects a 5.7% increase vs. 2005. The market is divided into three segments, home air fresheners, car air fresheners and potpourri/sachets. The largest segment, home air fresheners, accounts for over 91% of total air freshener sales, with $889.2 million in sales. The car air freshener segment makes up 6% of the market with a $61.2 million, while potpourri/sachets have a 3% share with $28.6 million. All three segments have experienced significant growth over the past five years largely due to the number of innovative new product launches.
The National Candle Association also suggests that the increase of candle as gift items has resulted in a growing willingness for consumers to pay more for candles they would give as a gift. This emphasis on “giftable” candles has pushed consumers into specialty stores and home décor stores in search of more upscale and unique offerings.
In recent years, the trend toward natural or complimentary scents has extended into cleaning products as well. Gone are the days of harsh or disinfectant smells.
Sources:
Global Cosmetic Industry, 12/1/06
Gifts & Decorative Accessories, 11/1/2007
Packaged Facts 3/19/08