The size of the home fragrance industry is predicted to grow at a compound annual growth rate (CAGR) of 3.1% to reach USD 27.63 billion by 2027. According to a recent report by Fortune Business InsightsTM titled “Home Fragrance Market Size, Share & Industry Analysis, By Product Type (Candles, Diffusers, Sprays, and Others), Distribution Channel (Offline and Online), and Regional Forecasts, 2024 – 2027,” the industry’s growth is expected to be primarily driven by the growing urban population. Approximately 55% of people on Earth, according to UN Department of Economic and Social Affairs (DESA) figures, currently reside in urban areas. According to DESA projections, about 68% of the world’s population would live in urban areas by 2050, adding 2.5 billion new urban residents worldwide. Urban areas that are growing are hotspots for pollution and bad odors. The industry for residential air fresheners is expected to rise in the upcoming years since they offer respite from these annoyances. The fact that these products come in a variety of scents made from real extracts, such fruits and flowers, encourages city dwellers to buy them.
The report additionally shares the following information:
- 360-degree analysis of the industry drivers and restraints and their influence of the share, size, and overall growth of the industry;
- Comprehensive research into the regional and competitive dynamics of the industry;
- In-depth study of each and every industry segment; and
- Precise projections of the upcoming trends and prospects for the industry.
Information Source:Â https://www.fortunebusinessinsights.com/home-fragrance-market-102422Â
Top Companies Covered in the Home Fragrance Industry
- ScentAir Technologies, LLC
- Voluspa
- Seda France Inc.
- Newell Brands, Inc.
- Jo Malone London Inc.
- KORONA Candles Sp. z o.o.
- S. C. Johnson & Son, Inc.
- NEST Fragrances
- Procter & Gamble Co.
- Reckitt Benckiser Group plc
Market Driver
Rising Investment in Real Estate Sector of Emerging Economies to Aid Market Expansion
Developing nations like India and China are experiencing a booming real estate industry due to rapid urbanization and industrialization. This flourishing sector presents significant investment opportunities for both domestic and international investors, which is a key trend in the home fragrance industry. According to a January 2020 report by the Economic Times, Foreign Direct Investment (FDI) in India’s real estate sector is expected to grow by 5%, amounting to an infusion of around USD 6.5 billion over the next decade. Additionally, emerging economies are predicted to have the highest number of urban residents in the coming years. The World Economic Forum (WEF) indicates that China, Nigeria, and India will together account for roughly 33% of the increase in the global urban population by 2050. These trends are likely to benefit the home scent industry significantly.
Regional Analysis
Asia-Pacific to Showcase Speediest Growth; North America to Command the Market Share
North America, which generated USD 1,898 million in sales in 2018, is expected to hold a dominant position of the home fragrance industry during the course of the forecast year. The primary growth driver for the business in this region is expected to be the rising demand for residential and commercial space in the US and Canada.
According to studies on the home fragrance industry, Asia-Pacific is predicted to develop at the fastest rate in this sector because to rising disposable income and an increasing urban population, particularly in China and India. The growth of the industry would also be aided by developments in the organized retail sector in this region.
Competitive Landscape
Increasing Focus on Nature-based Products to Fuel Market Competition
The analysis of the home fragrance industry indicates that leading companies in this sector are concentrating on creating and introducing goods made from natural raw ingredients. This is becoming a common tactic used by businesses looking to grow their clientele and solidify their industry share.
industry Developments:
- January 2020:Â UK-based Reckitt Benckiser-owned Air Wick launched a suite of home fragrances under the BOTANICA by Air Wick brand name. Home freshening products in this product line are derived from natural and exotic ingredients that provide superior air care in indoor settings. They are also packaged in environment-friendly materials so that they can be easily recycled.
- December 2019: The Atlanta-based consumer goods company, Newell Brands, announced that its Home Fragrance subsidiary, Yankee Candles, will be opening a new R&D facility in Massachusetts. The new unit would significantly enhance the company’s R&D capacity and will be equipped to develop and test candles and home fragrance products.