United States Home Fragrance Market Report and Forecast 2024-2032

United States Home Fragrance Market Outlook 

The United States home fragrance market size is projected to grow at a CAGR of 5.10% between 2024 and 2032. 

Key Takeaways

• Prominent players in the market are Reckitt Benckiser Group PLC., Proctor & Gamble Company, Newell Brands, Inc., ScentAir Holdings, Inc., and NEST Fragrances, LLC.

• India is a major producer and exporter of incense sticks, with a sector worth nearly USD 1 billion, where US is a large importer for Indian incense sticks.

• The rise of social media and online retail channels drives home fragrance sales, where brands capitalise on revenue by diversifying designs, colours, scents, and materials to suit individual preferences.

Home fragrance refers to scents or odours that are used to enhance the ambiance of a living space. Home fragrance products can include candles, incense sticks, diffusers, sprays, and potpourri, among others. The use of home fragrance has become increasingly popular in recent years, with many people using scents to create an inviting atmosphere in their homes. Home fragrance can also be used to mask unpleasant odours.

The increasing emphasis on improving home aesthetics is propelling the home fragrance market in United States as consumers are buying air fresheners and scented candles to create personalised and visually appealing living spaces. Also, the rising expenditure on self-care have driven consumers to invest in certain fragrances such as lavender, peppermint, and lemongrass. These fragrances can promote relaxation and reduce stress, which is increasing the demand of home fragrances in United States.

Key Trends and Developments

Growing demand for natural and organic fragrances and expanding use of smart and connected devices are positively impacting the United States home fragrance market outlook

United States Home Fragrance Market Trends

Sustainability initiatives taken by market players is one of the key trends of boosting the United States home fragrance market development. There is a growing preference for eco-friendly and sustainable home fragrance products, prompting brands to adopt environmentally conscious practices in product development and packaging. LAFCO, a New York-based home fragrance company, uses sustainable soybean wax to make scented candles. Soy wax offers a longer burn time, emits fewer toxins, and creates less soot than paraffin waxes.

Innovations in spray technologies are also playing a significant role in the United States home fragrance market growth. Some of the latest innovations include the use of laser-like streams to disperse micro-sized droplets of perfume evenly over the surface, creating a long-lasting and addicting fragrance experience. Automatic or electric sprays have also been developed, enabling more efficient and effective home fragrance products. Overall, the advancements in spray technologies have enabled the development of more efficient and effective home fragrance products, accelerating the market’s expansion. 

United States home fragrance market size has been increasing due to the expansion of e-commerce sector in the country. Online platforms such as Amazon, eBay, and Etsy provide consumers with convenient access to a wide variety of home fragrance products, such as incense sticks. These websites also provide product information, reviews, and discount deals, which influences consumer’s purchasing decision. 

Market Segmentation  

United States Home Fragrance Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Scented candles hold a significant market share due to availability of different scents in the US

As per United States home fragrance market analysis, scented candles maintain a dominant market share in the US due to their decorative appeal and the increasing demand for home aesthetics. According to the National Candle Association, approximately 75 to 80 percent of candles sold annually in the US are scented. Scented candles are largely preferred because they come in various fragrances, including orange, basil, sage, and rosemary, which caters to different consumer taste and demand.

Further, due to this high demand, manufactures are launching unique fragrances in these candles. In May 2022, Boy Smells partnered with the iconic Grace Jones by releasing a candle named "Grace." The candle, featuring black peppercorn and Jamaican flora scents, will be sold exclusively on Boy Smells' website and select speciality retailers. These unique combinations and thematic scents contribute to the popularity of scented candles in the country.

However, sprays, including air fresheners and room sprays, also secure a notable United States home fragrance market share due to their instant and versatile application, offering a quick and effective way to refresh living spaces. Sprays are available in various forms, such as aerosols, mists, and trigger sprays, and offer a wide range of fragrances. 

Furthermore, incense sticks are thin wooden sticks coated with aromatic materials that produce smoke when burned and is a niche product segment in the market. Incense sticks are mainly used for religious, spiritual, or meditative purposes, as well as for aromatherapy. Incense sticks have a loyal customer base among ethnic and cultural groups, especially Asian Americans, which has accelerated the United States home fragrance market growth.

Mass-priced fragrance products caters to a wide base of consumers due to their affordability 

Mass-priced home fragrance products hold a significant United States home fragrance market share, appealing to a broad consumer base seeking quality scents at affordable price points. Some of the market players, such as NEST Fragrances and Newell Brands, Inc offers a diverse range of high-quality home fragrance products, including sprays, diffusers, and scented candles, at affordable prices, which caters to the increased consumers demand for home fragrance products. 

Many other brands are incorporating premium ingredients (resins, flower extracts, and essential oils), sophisticated packaging (glass and crystals), and unique fragrances (rosemary, cinnamon, and pepper corn) within accessible price points to attract a wider consumer base.  Furthermore, these products do not come in essential goods and thereby, the larger consumer base is willing to spend only a certain portion of their disposable income on home fragrances, which increases the demand for mass-priced products. 

However, the premium segment includes products that are made with high-quality ingredients, sophisticated packaging, and exclusive fragrances. According to United States home fragrance market report, the premium-priced home fragrance products also capture a considerable market share, addressing the demand for luxury, exclusivity, and unique fragrances among consumers willing to invest in higher-priced offerings.

Competitive Landscape

Market leaders are developing fragrances by using organic ingredients, which further expands their product portfolio and customer base

Other key players in the home fragrance market in United States include S.C. Johnson & Son Inc., NEST Fragrances, LLC, Flame and Wax Inc. (Voluspa), Empire Candle Co., LLC, Pommes Frites Candle Co., and Fragrance Manufacturing, Inc., among others.

Key Highlights of the Report