Home Fragrance Market Size, Market & Industry Analysis, By Fragrance Type (Floral, Fresh/Citrus, Woody, Oriental/Spicy, Herbal, Fruity, Sweet/Gourmand, Oceanic, and Others), By Product (Candles, Sprays, Diffusers, Essential Oils, Incense Sticks, Plug-in Devices, Potpourri & Sachets, Wax Melts, and Others), By Category (Mass and Premium), By Distribution Channel (Hypermarkets/Supermarkets, Specialty Stores, Online Channels, and Others) and Regional Forecast, 2025-2032

The global home fragrance market size was valued at USD 24.73 billion in 2024. The market is projected to grow from USD 25.69 billion in 2025 to USD 38.41 billion by 2032, exhibiting a CAGR of 5.91% over the forecast period.

Home fragrance products are designed to enhance the scent and ambience of homes. The market includes various products, such as candles, sprays, diffusers, and essential oils. Furthermore, many prominent players are operating in the market, including Newell Brands, Reckitt Benckiser Group PLC, S.C. Johnson & Son Inc., Procter & Gamble, and Richard Ginori s.r.l. Viale Giulio Cesare.

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MARKET DYNAMICS

Market Drivers

Growing Number of Residential Homes and Increasing Focus On Self-Care Among Individuals to Boost Product Demand

The increasing number of residential units, including apartments, villas, and individual houses owing to the rising population and growing urbanization across countries, will propel the product demand. For instance, according to the U.S. Census Bureau and the Department of Housing and Urban Development, the total number of housing units in the U.S. increased to 143.79 million in 2022 from 142.15 million in 2021 and 140.80 million in 2020. Furthermore, increasing focus on self-care, coupled with growing interest in relaxation & stress reduction techniques among individuals, will fuel the market growth. Additionally, the rising trend of home décor and desire to maintain a pleasant home environment will boost the product demand. Several major market players are focusing on acquisitions to diversify their portfolios and strengthen their presence. For instance, in June 2023, Curio Brands, a U.S.-based home fragrance and bath & body company, acquired Otherland, a U.S.-based candle company.

Wide Availability of Products to Propel Market Growth

The high presence of international and local players offering a diverse range of products worldwide, coupled with rising disposable income of the middle-class population has increased the spending on premium products. This factor will fuel the market’s growth. Moreover, the increasing product availability with various innovative scents will also boost the product demand across countries. Several prominent market players are focusing on launching new products to diversify their portfolios and increase product sales. For instance, in August 2023, Febreze, a brand of P&G, launched its new range of air mist room sprays, Mood Collection.

Market Restraints

Fluctuating Raw Material Prices, Product Recalls, and Increasing Counterfeit Products to Limit Market Growth

The industry heavily relies on various raw materials, such as wax, scents, denatured alcohols, essential oils, glass, and bamboo. Some of these materials are prone to price volatility due to inflation, rising demand from cosmetics & beauty industry, geopolitical tensions, and production levels. These fluctuating prices can increase production costs, thus limiting market growth. Furthermore, the increasing number of product recalls owing to various issues, including fire hazards, allergic reactions, and respiratory problems can hinder the market’s growth. Product recalls can lead to a significant drop in product demand and negatively impact the company’s brand reputation.

Home Fragrance Market Trends

Increasing Demand for Eco-Friendly & Sustainable Products to Propel Market Growth

Increasing environmental awareness among individuals and companies and rising focus on sustainability as their corporate social responsibility will boost the demand for eco-friendly products. Eco-conscious consumers are increasingly seeking products made from traceable and sustainably sourced materials. Moreover, various major industry participants are launching sustainable products made using eco-friendly materials and packaging to attract eco-conscious consumers. For instance, in July 2024, Sugandhim, an India-based homecare company, launched its new eco-friendly aroma diffusers for homes. According to the company, the new diffusers are made using sustainable materials.

Impact of COVID-19

The COVID-19 pandemic significantly impacted the market owing to lockdowns imposed by governments across countries in 2020. The prices of ingredients, such as wax, scents, and reed sticks increased rapidly due to supply shortages and reduced production across all industries. Moreover, consumer demand for scented candles and diffusers grew owing to increasing interest in self-care and wellness. Furthermore, lockdowns disrupted product manufacturing and supply chains, leading to production delays due to raw material shortages, transportation disruptions, and factory shutdowns.

SEGMENTATION ANALYSIS

By Fragrance Type

Wide Availability of Fresh/Citrus Products Favored Their Demand

The global market is segmented into floral, fresh/citrus, woody, oriental/spicy, herbal, fruity, sweet/gourmand, oceanic, and others, based on fragrance type.

The fresh/citrus segment dominated the market in 2024 owing to its wide availability. Fresh/citrus fragrance products are made by using essential oils that are extracted from the peel or fruit of citrus trees, such as limes, lemon, orange, grapefruit, and bergamot. Furthermore, the fresh/citrus fragrance has various benefits owing to which it is used in mood-boosting, aromatherapy, blending, and other applications.

The floral segment is expected to grow significantly throughout the forecast period. The floral fragrance is available in candles, sprays, diffusers, and others. Furthermore, the ease in the availability of floral products on online and offline platforms will further boost the segment growth.

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By Product

Rising Popularity of Scented Candles Fueled the Segment Growth for Candles

The global market is segmented into candles, sprays, diffusers, essential oils, incense sticks, plug-in devices, potpourri & sachets, wax melts, and others, based on product.

The candles segment dominated the market in 2024 owing to the rising popularity of scented candles. The demand for these candles is increasing among consumers as they promote relaxation, enhance sensory experience, and play a key role in mood enhancement.

The sprays segment is expected to grow significantly in the coming years. Sprays are commonly used to eliminate odors and add a pleasant scent to a space. In addition, they provide a personal touch to the space and enhance productivity and mood. Moreover, several prominent market players are launching new products. For instance, in November 2023, Dabur India Limited, a consumer products manufacturer, announced the launch of Odonil Exotic Room Spray.

By Category

Growing Popularity of Mass Products Among Budget-Conscious Consumers Favored Market Expansion

The market is bifurcated into mass and premium, based on category.

The mass segment dominated the market in 2024 due to these products being low-cost compared to the premium products. Mass products are gaining popularity among budget-conscious consumers. Mass production commonly uses mechanization for achieving high volume, labor division, material flow, monitoring, and quality control.

The premium segment is expected to grow significantly throughout the forecast period. Growing urbanization and working population, increasing disposable income, and growing trend of modernization, especially in developing countries, such as India, Thailand, Vietnam, Brazil, and others will further boost the premium products’ demand.

By Distribution Channel

Extensive Product Availability Fueled Popularity of Hypermarkets/Supermarkets

The market is segmented into specialty stores, hypermarket/supermarket, online channels, and others, based on distribution channels.

The hypermarket/supermarket segment dominated the market in 2024 due to the extensive product availability. Supermarkets & hypermarkets offer a vast array of products from various brands, encompassing different price points and catering to diverse consumer preferences.

The online channels segment is expected to grow significantly during the forecast period. The growing popularity of online shopping and availability of attractive discounts will fuel the segment’s growth. The increasing penetration of online sales channels among individuals will drive the segment’s growth. Furthermore, the availability of multiple product options and price comparisons on online shopping sites has significantly increased the number of online shoppers.

Global Home Fragrance Market Regional Outlook

Geographically, the global market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

North America

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North America dominated the market in 2024. The increasing consumer need for housing facilities in countries, such as the U.S., Canada, and Mexico will accelerate the demand for home fragrance products. These include 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 U.S. is the most prominent country in the region owing to the presence of prominent companies and growing demand for various luxury home fragrance products, including diffusers and scented candles.

Europe

Europe is expected to grow significantly throughout the forecast period due to the presence of adequate import facilities for various kinds of candles. According to the European Candle Manufacturers Association (ECMA), the import of candles has increased from 128.52 tons in 2021 to 170.51 tons in 2022. Moreover, internet retailing is gaining significant popularity among European consumers for buying home fragrance products, thereby driving the market growth.

Asia Pacific

Asia Pacific is expected to grow significantly throughout the forecast period. The rise in urbanization, disposable income, home sales, working population, and growing global awareness regarding personal & home hygiene will drive the demand for home fragrance products. Furthermore, rise in the sales of residential properties in countries, such as India and China will favor the regional market’s expansion in the coming years.

South America

South America is expected to grow considerably during the forecast period owing to a rise in the citizens’ disposable income and standard of living. For instance, according to The World Bank Group, the Gross Net Income (GNI) per capita for Latin America & the Caribbean increased from USD 7,674 in 2020 to USD 8,688 in 2022. Furthermore, the rise in demand for home fragrance products is attributable to the increasing use of incense sticks, sprays, candles, and other items during festive seasons and growing importance of spiritual activities in these regions.

Middle East & Africa

The Middle East & Africa is expected to grow considerably during the forecast period. The region is witnessing rapid modernization and urbanization, and key players are increasingly offering products that help millennial families enhance the aroma and ambiance of their residential buildings. Consumers are increasingly investing in home décor products, which will positively influence the regional market growth in the future.

COMPETITIVE LANDSCAPE

Key Industry Players:

Prominent Players to Focus on Launching New Products to Diversify Their Portfolios

Intense competitive rivalry characterizes the global market. Prominent international market players are leveraging their strong brand loyalty and presence to stay ahead of the competition. Several key market participants are focusing on launching new products to diversify their portfolios. For instance, in January 2022, Yankee Candles, a brand of Newell Brands, launched its new eco-friendly candle collection, the Yankee Candle Well Living Collection, featuring 20 new Yankee Candle fragrances.

Major Players in the Home Fragrance Market

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Newell Brands, Reckitt Benckiser Group PLC, S.C. Johnson & Son Inc., Procter & Gamble, and Richard Ginori s.r.l. Viale Giulio Cesare are prominent players in the market. The global home fragrance market is fragmented, with the top 5 players accounting for around 28% of the market share.

List of Key Home Fragrance Companies Profiled:

• Broken Top Brands (U.S.)


• Circle E Candles (U.S.)


• ESTEBAN PARIS (U.S.)


• Newell Brands (U.S.)


• Reckitt Benckiser Group PLC (U.K.)


• S.C. Johnson & Son Inc. (U.S.)


• Procter & Gamble (U.S.)


• Richard Ginori s.r.l. Viale Giulio Cesare (Italy)


• Scentair Technologies, LLC (U.S.)


• 3M Company (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• January 2024: L’OCCITANE Group, a France-based beauty and wellness company, acquired Dr. Vranjes Firenze, an Italy-based home fragrance brand. According to the company, the acquisition will play a significant role in strengthening its portfolio of premium beauty and fragrance brands.


• October 2023: HoMedics, a U.S.-based health and wellness company, launched its new SereneScent Waterless Home Fragrance Diffuser and SereneScent Fragrance Oils. According to the company, the new diffuser can disperse fragrance for up to 30 days without the need for replenishing the fragrance oil.


• August 2023: Febreze, a brand of P&G, launched its new range of air mist room sprays, Mood Collection. According to the company, the new collection features three scents: Refresh & Energize, Romance & Desire, and Soothe & Restore.


• July 2023: WoodWick Candles, a brand of Newell Brands, launched its new Fall Seasonal Fragrance Collection, featuring single-scent and trilogy multi-layered candles. According to the company, the new collection features various scents, including Hinoki Dahlia, Vanilla Musk, Santal Myrrh, Evergreen Cashmere, and Evening Luxe Trilogy.


• August 2022: WoodWick Candles, a brand of Newell brands, launched its new battery-operated WoodWick Radiance diffuser in two finishes, Amber and Gray. According to the company, the new diffuser offers a cordless and waterless solution which automatically diffuses fragrance.

Investment Analysis and Opportunities

The report provides comprehensive investment analysis and opportunities in the market to provide investors and business leaders with actionable insights. It also highlights potential investment opportunities, including new product launches, increasing production capacity, strengthening retail presence, research & development of new scents, and geographic expansions.

REPORT COVERAGE

The report analyzes the market in depth and highlights crucial aspects, such as prominent companies, fragrance types, products, categories, and distribution channels. Besides this, it also provides insights into the global market trends and highlights significant industry developments by home fragrance companies.

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Report Scope & Segmentation