Home Fragrance Market Size, Share & Industry Analysis, By Product Type [Candles, Room Sprays, Reed Diffusers, Essential Oils, and Incense Sticks], Distribution Channel (Online and Offline), and Regional Forecast, 2024-2032

The global home fragrance market size was valued at USD 23.93 billion in 2023 and is projected to grow from USD 24.73 billion in 2024 to USD 38.41 billion by 2032, exhibiting a CAGR of 5.66% during the forecast period. North America dominated the home fragrance market with a market share of 35.48% in 2023.

Home fragrance products are increasingly popular among households to maintain a scented and fresh environment. These products remove or decrease unpleasant smells, boost energy, improve mental focus, and improve the immune system. Furthermore, the rise in consumer inclination toward premium home care products will boost the demand for luxury home fragrance products. According to the National Candle Association, the prime reason for purchasing the home fragrance product is to eliminate odors and add a pleasant scent to living or room spaces. Moreover, the thriving growth of the spa industry significantly contributes to the increasing demand as it is regularly used for making clients feel relaxed and reducing their stress. As per the 2023 ISPA U.S. spa industry study conducted by the International SPA Association (ISPA), U.S. spa industry revenues increased from USD 18.1 billion in 2021 to USD 20.1 billion in 2022.

The outbreak of the novel coronavirus has harmed the home fragrance market, owing to the implementation of lockdown and social distancing regulations. This has led to a shortage of labor that has resulted in reduced production volume and high cost of the product. For instance, according to the Economic Times data in May 2020, the worker shortage is the biggest difficulty faced by the FMCG sector.

Home Fragrance Market Trends

Increasing Adoption of Innovative Candles and Smart Home Fragrance to Favor Market Growth

Manufacturers are increasingly focusing on producing innovative home fragrance devices that can be controlled using smartphones. This presents an opportunity for the manufacturers to develop advanced products that will drive the home fragrance market growth during the forecast period. For instance, in September 2021, Ginori 1735 launched a contemporary interpreted LCDC Luca Nichetto collection of home fragrance products and candles of different sizes & colors in France. It can be controlled by a smartphone application with attractive features such as the ability to switch on and off, instant spray, and refill/low battery alerts. Additionally, the escalating production of candles with attractive-looking shapes, designs, and various scents is expected to boost product demand.

Home Fragrance Market Growth Factors

Rising International Trade of Candles to Boost Market Growth

The rising international trade of candles will encourage prospective participants to explore trade opportunities across European and North American markets over the forecast period. According to Eurostat, the statistical office associated with the European Union, the EU’s candle import witnessed a 32% increase from 2021 to 2022, highlighting the potential business opportunities for candle manufacturers across the region. The increasing demand for candles in the EU and across international markets can be attributable to the rising popularity of scented candles.

Rising Residential Sector to Augment Growth

The increasing construction of new homes resulting in embracing the product across the globe positively influences gaining more traction. According to the data collectively published by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, single-family housing sales in the U.S. reached 683,000 in April 2023. In addition, the rising popularity of short-term renting homes services such as Airbnb, HomeToGo, FlipKey, and others that provide rental homes to people is assisting in raising the need for home fragrance products.

RESTRAINING FACTORS

Rise in Allergic Reactions among Individuals Owing to the Use of Chemicals in Home Fragrance Products to Restrain Market Growth

The rising number of people with health complications related to lung issues or diseases such as Asthma, Chronic Obstructive Pulmonary Disease, Pneumonia, and others have resulted in allergic reactions and negative impacts on their health. Furthermore, higher and repeated exposure to chemicals, such as phthalates or propellants added in home fragrance products, which get diffused in the air along with the fragrance, can pose adverse health hazards, including respiratory disorders to humans. Rising awareness regarding the adverse effects of home fragrances featuring toxic chemicals is expected to impede market growth over the forecast period.

Home Fragrance Market Segmentation Analysis

By Product Type Analysis

The Candle Segment Holds a Leading Market Share due to Its Significant Usage Over its Counterparts

The market is fragmented into candle, room sprays, reed diffusers, essential oils, and incense sticks based on product type. The candle segment holds a leading market share owing to the significant demand for candles in traditional and spiritual practices in many countries globally. Similarly, the popularity of scented candles as a home fragrance is expected to boost this segment's consumption further.

The room sprays segment is projected to grow with a significant CAGR as it provides a personal touch to the space and enhances productivity and mood. It offers a convenient and quick way to refresh any living space instantly and also creates an inviting and welcoming environment. Furthermore, the easy availability of room sprays in various fragrances, such as lavender, eucalyptus, sandalwood, ocean, and others, has further attracted a large consumer base, thereby fueling the segment growth.

By Distribution Channel Analysis

Offline Segment Holds the Highest Market Share

By distribution channel, the market is divided into offline and online. The offline segment is estimated to be the dominant the market due to the wide variety of candle and home fragrances under one roof, making it a more desirable choice to many consumers than offline shops. Retail outlets are considered to be an important component of the supply chain as they bridge the gap between wholesalers or manufacturers and end consumers.

The online segment is expected to show substantial growth owing to the increasing adoption of smartphones and the rising number of busy working professionals who prefer using an online channel to help save their time.

REGIONAL INSIGHTS

Europe is estimated to exhibit a considerable presence in the home fragrance market owing to the increasing consumer demand for home care and fragrance products. According to the data published by the European Candle Manufacturers Association (ECMA), in 2021, each citizen’s average candle consumption reached 1.80 kg, 12.8% over the quantity consumed in 2015. Additionally, the usage of candlelight as part of the tradition in Germany and the U.K. is expected to escalate the demand for candles and home fragrances in the region.

The North American home fragrance market stood at USD 8.49 billion in 2023. The increasing consumer need for housing facilities in countries, such as the U.S., Canada, and Mexico accelerates the demand for home fragrance products, including candles, room sprays, reed diffusers, incense sticks, and essential oils. According to the data presented by The Canadian Real Estate Association (CREA), home sales were up 3.7% between December 2023 and January 2024. The number of recently listed properties edged up 1.5% month-over-month.

Asia Pacific is expected to grow with the highest CAGR owing to a rise in consumer disposable incomes and the adoption of modern lifestyles in developing countries, such as India. Rising innovation coupled with increased consumer preferences for designable and attractive home fragrance products will further drive regional market growth over the forecast period. The demand for incense sticks has been increasing significantly across the Asia Pacific region. These products are considered an important part of religious ceremonies and rituals in various faiths practiced in countries, such as Indonesia, China, and India.

The rise in demand for home fragrance products is attributable to the increasing use of incense sticks and candles during festive seasons and the growing importance of spiritual activities in the region. The growing trend of Yoga and Meditation is also likely to enhance the demand for incense sticks that are believed to have a positive impact on the mind and body.

List of Key Companies in Home Fragrance Market

Key Players Moving Toward Organic-Based Products to Amplify Their Market Positions

The increasing number of manufacturers drifting towards producing natural/organic-based candles and home fragrance products less toxic to humans is positively generating more traction. For instance, Mysore Chandan comes up with Sandalwood Organic Room Spray that is less harmful than chemical-based products and has the potent goodness of sandalwood and patchouli to help warm the heart and freshness of orange.

LIST OF KEY COMPANIES PROFILED:

• The Procter & Gamble Company (U.S.)


• The 3M Company (U.S.)


• S. C. Johnson & Son, Inc. (U.S.)


• Reckitt Benckiser Group plc (U.K.)


• Newell Brands (U.S.)


• Circle E Candles (U.S.)


• Esteban Paris (France)


• Broken Top Candle Company (U.S.)


• Bridgewater Candle Company (U.S.)


• The Copenhagen Candle Company LTD (U.K.)

KEY INDUSTRY DEVELOPMENTS:

• October 2022 – Antica Farmacista, a reed diffuser and other fresher products maker, launched a kit of 250ml Home Ambiance Diffuser, a nickel-plated 250ml diffuser tray, and a 9oz Hexagonal Candle products.


• April 2022 – Parf'ex SA, a France-based perfumery and household care products maker, expanded its fragrance production operations in the UAE to increase its presence in the Middle East region.


• March 2022 – United Perfumes expanded its portfolio of La Compania Di Caterina (aka LCDC) home fragrance collection by establishing a distributor agreement with Ginori 1735, an Italian designer products maker in France.


• December 2021 – Givaudan acquired Custom Essence, a U.S.-based fragrance creation house specializing in producing natural home fragrances, to expand its business presence in the U.S.


• December 2021 - Global Consumer Acquisition Corp. acquired two privately labeled candle manufacturers, Luminex Home Decor & Fragrance Holding Corporation and GP Global Limited, to expand its presence in the U.S. air care market.

REPORT COVERAGE

The home fragrance market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, end-users, and leading product types. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope & Segmentation