Industry Outlook

Demand for home fragrances has witnessed a steady growth over the past few years and expected to display a similar trend in the coming years as well. Asia Pacific expected to display a faster growth rate compared to the other regions for home fragrances, with China, India and Japan displaying promising growth during the forecast period. High population growth is a key reason for the growth of this market in Asia pacific. Further, growing middle class population is a key factor driving the demand for home fragrances market. Further, rising demand for automation has led the manufacturers to develop auto spray home fragrances, which are designed to operate on their own at regular intervals, thereby making it the fastest growing segment as compared to other home fragrance products.

Based on distribution channel, supermarkets and hypermarkets captured the major chunk of the market in 2020 because of high consumer inclination towards this mode of distribution channel for buying home fragrance products. However, millennials are more inclined towards online purchases as online purchasing is associated with several benefits such as heavy marketing activities taken up by the e-commerce giants, heavy discounts, and home delivery options among others, thus making the online channel segment the fastest growing segment during the forecast period.

"Aerosols spray held the lion’s share in the home fragrance market in 2020"

In 2020, the aerosols spray held the lion’s share in the home fragrance market while auto spray fresheners segment projected to witness the fastest CACR during the forecast period. Factors such as increased demand for “natural” ingredients based home fragrance products, emergence of fragrances for reduction of stress and change in moods, and rising focus on performance and functionality of home fragrance products, such as controlled release systems, prolonged top notes, and increased stability driving the global home fragrance market. Moreover, luxury lifestyle leading to adoption of high-tech and premium home fragrance products such as smart app based diffusers also contributing the growth of home fragrance market.

"Online distribution channel expected to witness highest CAGR owing to increasing penetration of online purchasing in developed as well as developing economies"

In terms of value, the supermarket & hypermarket segment accounted for a market share close to 50% in 2020. However, online channel segment expected to witness highest CAGR from 2021 to 2029 owing to increasing penetration of online purchasing in developed as well as developing economies. As part of their strategy to increase the sales of home fragrance products, companies are focusing on adopting various ecommerce platforms, owing to the fact that it helps to minimize the maintenance cost. Some home fragrance products have a shorter life span with close expiry dates. Hence, the companies cannot stock these items in volumes in physical stores. In addition, maintaining manual record of each item is a complicated process and hence brick and mortar based retail stores having increasing competition from online sales channels. Hence, convenience factor of consumer expected to drive the online retail segment during the forecast period.

"Growing demand from Asia Pacific projected to catapult the market growth"

Europe held market share of more than 30% in 2020 followed by North America closely followed by Asia Pacific with market share of more than 20% in 2020. However, during the forecast period, the growth of North American and European market would be slower due to low population rise as compared to developing regions like Asia pacific. Despite the fact that Europe expected to dominate the market during the forecast period and the Asia Pacific market expected to witness highest growth rate from 2021 to 2029. Increasing demand for home fragrance products from millennials followed by rising awareness related to benefits offered by these products expected to drive the global home fragrance products market.

"Leading brands are aggressively looking for expansion"

The global home fragrance market comprises of large number of regional and international players thus making the market fragmented in nature. Some of the major players operating in the market are 3M Company, SC Johnson & Son, Inc., Air Esscentials, Givaudan S.A, Scent Air, Newell Brands, Bath & Body Works, Korona Candles S.A, Reckitt Benckiser, Procter & Gamble among others. Manufacturers compete among themselves on delivering high quality products in order to gain competitive advantage.

Geographic expansion, merging, acquisition and new product launch are some of the strategies adopted by the players to remain competitive among themselves. The 3M Company is a multinational conglomerate operating in the fields of consumer goods, industry and healthcare and is one of the dominant player in this market.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Home Fragrance market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Home Fragrance market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Home Fragrance market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Home Fragrance market?
• Which is the largest regional market for Home Fragrance market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Home Fragrance market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Home Fragrance market worldwide?