Global Home Fragrance Market - 2023-2030

Overview

Global Home Fragrance Market reached US$ 10.5 billion in 2022 and is expected to reach US$ 21.4 billion by 2030, growing with a CAGR of 9.4% during the forecast period 2023-2030.

The global home fragrance market is experiencing growth, driven by innovative and unique designs in home fragrance products. Design-forward brands like Moooi, Byredo, Jo Malone, Ponsont, Kana London, Frama, Mad et Len and Affix Works are introducing inventive tools to enhance the olfactory and visual experience in domestic spaces. The products go beyond traditional scented candles, offering consumers a broader range of options, from dancing scent diffusers to sustainable and visually appealing potpourri.

Design collaborations and a focus on aesthetics, such as the delicate bisque ceramic packaging of Jo Malone's Townhouse Collection or Evermore's ceramic bowls, combine form and function. The innovations contribute to the growing appeal of home fragrance products and reflect a trend towards more creative and artistic approaches to scenting living spaces. As consumers seek multi-sensory experiences, this market is expected to continue expanding, providing a new way to make living spaces not only smell great but also look aesthetically pleasing.

Asia-Pacific dominates the global home fragrance market, showcasing the region's readiness for fragrance adoption. The growing preference is driven by urbanization and asthetic well-being, making home fragrance products an essential component of modern living. Manufacturers invest in innovative designs and fragrance delivery methods to meet this growing demand, contributing to the region's leading position in the global home fragrance market.

Dynamics

Global Urbanization and Population Growth

The global home fragrance market is poised for remarkable growth, largely driven by rapid urbanization, particularly in emerging economies. The United Nations forecasts a global population of 9.7 billion by 2050, with a substantial portion residing in urban locales. As urbanization accelerates, the demand for residential, commercial and infrastructure development surges.

Home fragrance products play a pivotal role in enhancing the appeal and comfort of living spaces, becoming an indispensable element in accommodating the expanding urban population and shaping the ambiance of modern cities. The home fragrance market, thus, stands at the forefront of supporting the construction and lifestyle needs of these burgeoning urban centers.

Transforming Home Environments: The Rising Appeal of Aesthetic Fragrances

The global home fragrance market is experiencing remarkable growth, fueled by a shift in focus towards making our living spaces more inviting and comforting. The transformation has been accelerated by increased time spent indoors due to various factors, including lockdowns and a heightened interest in self-care. People have begun to invest in creating cozy, mood-enhancing environments within their homes, which has led to the emergence of numerous local candle brands.

Also, the launches of asthetic fragrances is the key factor, in October 2022, Japanese D2C fragrance brand Shefar, created by model and solo artist Noah Sato, launched a scented candle product line featuring two candles. The new products were introduced as part of the brand's theme, "the girl of your dreams." The candles, named Liela and Mullan, were carefully crafted to maintain a strong fragrance while achieving high combustion efficiency and low soot emission. The brand celebrated its first anniversary with a three-day pop-up store in Osaka and the launch of its first perfume, Pipiel, which garnered significant sales within just one day.

Health Concerns and Labeling Issues

The home fragrance market faces several restraints as concerns related to indoor air quality and health become more prominent. Conventional air fresheners which are in the form of aerosols, plug-ins, scented candles or gels, contain chemicals that affect indoor air quality. Consumers are increasingly aware of the potential health risks associated with these products which include the emission of over 100 chemicals in which are some volatile organic compounds.

Air fresheners labeled as organic, nontoxic, green or all-natural may still emit hazardous chemicals, which raises concerns about product labeling and regulations. The industry must address these concerns and promote safer, more transparent formulations to meet the demand for healthier indoor environments. Moreover, the chronic effects of air fresheners containing potentially carcinogenic or hormone-disrupting chemicals are a significant concern, encouraging consumers to seek alternatives and driving restraint in the conventional home fragrance market.

Segment Analysis

The global home fragrance market is segmented based on product, distribution channel and region.

Scented Candles: Dominating the Home Fragrance Market with Versatility and Innovation

Scented candles hold the largest share in the home fragrance market due to their widespread popularity and versatility. It offer a wide range of fragrances, catering to diverse consumer preferences and create a soothing ambiance in homes. Scented candles are easy to use, portable and provide long-lasting fragrance. Its aesthetic appeal, decorative containers and affordability make them a top choice among consumers. Additionally, scented candles are often used for relaxation, stress relief and to enhance the overall home environment, contributing to their market dominance.

Furthermore, advanced technology-driven candles also emerging as the trend, for instance, in May 2022, Scent Lab introduced a personalized candle experience driven by artificial intelligence and data-driven personalization. Customers are guided through a 60-second questionnaire to identify their unique scent profiles, allowing the company to offer personalized scent recommendations based on mood, lifestyle and preferences. The approach aligns with the consumer trend of self-expression, particularly among Gen-Z and Millennial customers who seek scents that represent their identity.

Geographical Penetration

Urbaniczation Dominance of Asia-Pacific in the Home Fragrance Market

The Asia-Pacific dominates the home fragrance market. The region's increasing urban population, particularly in its major cities, coupled with affordability challenges in the housing market, has driven the demand for rented residential properties. As per the M&G report, in APAC cities, the population has doubled in the last 15 years, with 2.2 billion people, half of the global urban population, residing there. The number is projected to grow by an additional 50% by 2050.

Moreover, as the Asia-Pacific experiences a significant rise in its urban population, particularly in major cities, there is a growing demand for rented residential properties. The shift in housing preferences, driven by factors like housing affordability challenges, is mirrored in the home fragrance market. The need for home fragrances is particularly relevant for urban dwellers who may not have the freedom to modify their living spaces but still want to make it feel like home.

COVID-19 Impact Analysis

The COVID-19 pandemic had a profound impact on the home fragrance market. As people spent more time indoors due to lockdowns and restrictions, there was a notable surge in the demand for home fragrance products. Many sought to create pleasant and comforting environments and home fragrances offered a simple yet effective solution. Candles, diffusers and air fresheners became popular choices to mask unpleasant odors and enhance living spaces.

Conversely, the pandemic disrupted supply chains, leading to shortages of some home fragrance products. Economic uncertainties also affected consumer spending habits, causing fluctuations in sales. With more people working from home, the focus shifted towards home office fragrances for concentration and relaxation.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war has introduced significant uncertainty and challenges for the global natural fragrance market, primarily affecting Europe. While the market was recovering from the economic impact of the COVID-19 pandemic, the geopolitical conflict has created skepticism among industry stakeholders. The situation, reminiscent of the Cold War, has reshaped the global business landscape.

However, the war's implications, including supply chain disruptions and geopolitical uncertainties, may hinder the market's progress. Europe, with changing consumer preferences for naturally scented products, had been the dominant region, while North America and Asia-Pacific showed growth potential. Fragrance companies are investing in premium natural fragrances and strategic collaborations to maintain a competitive edge in this fragmented market.

By Product

• Scented Candles
• Sprays
• Essential Oils
• Incense Sticks
• Others

By Distribution Channel

• Supermarkets & Hypermarkets
• Specialty Store
• Convenience Stores
• Online

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In December 2022, IRIS Home Fragrances, a lifestyle and wellness brand by Cycle Pure Agarbathies, introduced an exclusive Glitter range to enhance the charm and sparkle of Christmas celebrations. The new Christmas collection features exotic fragrances like Gold Musk and Romance. The product offerings include candles, tapers and reed diffusers with gold luster, designed to add a touch of brilliance to Christmas decorations, including lights and ornaments on Christmas trees.
• In October 2023, Friday Collective, a brand under Newell Brands, unveiled an exclusive collection of scented candles at Target stores and online. The collection includes three unique fragrances: 'Free To Be,' 'Sunroof's Open,' and 'Free Spirit.' Lisa McCarthy, President of Home Fragrance at Newell Brands, highlighted the exciting launch, coinciding perfectly with warm weather. The candles aim to energize and uplift, featuring bold and vibrant colors to add warmth to any space.
• In July 2023, The Yankee Candle Company, a part of the Newell Brands portfolio and a prominent name in home fragrance, launched its new autumn fragrance collection, "Daydreaming of Autumn." The globally inspired collection includes five seasonal fragrances crafted to capture the essence of fall. The collection offers a range of delightful scents and visual aesthetics to create a cozy and spice-filled ambiance in homes.

Competitive Landscape

The major global players in the market include: IFF (International Flavors & Fragrances), Firmenich, Givaudan, Symrise, Mane, Paco Rabanne, Robertet, Romeron Perfume, Takasago International Corporation, Wikka Fragrance Solutions.

Why Purchase the Report?

• To visualize the global home fragrance market segmentation based on product, distribution channel and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of home fragrance market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global home fragrance market report would provide approximately 50 tables, 53 figures and 182 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies