The global home fragrance market size is expected to reach USD 38.41 billion by 2032, exhibiting a CAGR of 5.66% during the forecast period. Rising urban population is anticipated to emerge as the key factor driving the growth of this market, finds Fortune Business Insights™ in its recent report, 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 – 2032”. The UN Department of Economic and Social Affairs (DESA) estimates that presently, nearly 55% of the world’s population lives in urban areas. By 2050, the DESA projects, close to 68% of the global population will inhabit urban areas, adding 2.5 billion urban dwellers across the globe. Enlarging urban areas are hubs for pollution, heat, and unpleasant smells. Residential air fresheners provide relief from these nuisances and therefore, their demand is set to spike in the forthcoming years. These products are available in different fragrances derived from natural extracts such as fruits and flowers, which further incentivizes their purchase value for urban residents.
According to the home fragrance market report, the value of this market stood at USD 5.61 billion in 2018. The report additionally shares the following information:
- 360-degree analysis of the market drivers and restraints and their influence of the share, size, and overall growth of the market;
- Comprehensive research into the regional and competitive dynamics of the market;
- In-depth study of each and every market segment; and
- Precise projections of the upcoming trends and prospects for the market.
Information Source: https://www.fortunebusinessinsights.com/home-fragrance-market-102422
List of Top Players Covered:
- 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 such as India and China have a booming real estate sector owing to rapid urbanization and industrialization. The thriving real estate market in these countries holds tremendous investment opportunities for both domestic and foreign players, which is one of the top home fragrance market trends. For example, a report published in the Economic Times in January 2020 revealed that Foreign Direct Investment (FDI) in the Indian real estate sector is projected to increase by 5%, equivalent to an infusion of roughly USD 6.5 billion in the coming decade. Moreover, emerging economies are expected to house the largest number of urban dwellers in the next few decades. For instance, the World Economic Forum (WEF) reports that China, Nigeria, and India will together account for approximately 33% of the rise in global urban population by 2050. The home scent market stands to benefit from these projections.
Regional Analysis
Asia-Pacific to Showcase Speediest Growth; North America to Command the Market Share
With a revenue generation of USD 1,898 million in 2018, North America is poised to decidedly lead the home fragrance market share during the forecast period. Increasing demand for commercial and residential spaces in the US and Canada is anticipated to be the central growth driver for the market in this region.
Asia-Pacific is expected to be the fastest-growing region in this market, states the home fragrance market research, on account of growing urban population and rising disposable income, especially in India and China. In addition to these, development in the organized retail sector in this region will further support the expansion of the market.
Competitive Landscape
Increasing Focus on Nature-based Products to Fuel Market Competition
According to the home fragrance market analysis, key players in this market are focusing on developing and launching products derived from natural raw materials. This is emerging as a popular strategy among companies that intend to widen their consumer base and entrench their position in the market.
Industry Developments:
- January 2020: 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.
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