While the U.S. prestige fragrance category as a whole has been experiencing increases in both dollar and unit sales, the greatest lift is coming from the $49.9 million niche of the home scents market, according to global information company The NPD Group. The heightened popularity of prestige candles and diffusers combined with their higher price tags is driving much of the growth within fragrance.

“During a time when consumers are being more prudent in their retail spending, they are also seeking services and activities that offer an experience," said Karen Grant, global beauty industry analyst, The NPD Group. "Home scents fulfill this desire; when it comes to fragrance, consumers are drawn to the experiential aspect of home scent. Today, consumers are expanding their scent engagement from being primarily a singular, personal encounter to also being a shared experience in their home with candles and reed diffusers.”

Consumers are both spending more on prestige fragrance candles and diffusers, as well as purchasing more of them. Candles, the largest segment within home scents, saw an 18 percent increase in dollar sales and 15 percent growth in unit sales in the 12 months ending April 2016. The category has grown by over $11 million in the past two years. Fragrance diffusers experienced a 36 percent spike in dollar sales and 27 percent lift in units over the last 12 months. During the last two years, its sales have nearly doubled in volume. In terms of average retail price, candles grew by 2 percent to nearly $29, while diffusers increased by 7 percent to nearly $37. (See chart below)

Within home scents, smaller segments including potpourri and room fresheners also experienced growth during these 12 months. Potpourri made a comeback, with dollar sales up 3 percent after the previous year’s 6 percent decline, while room fresheners are growing exponentially, with sales up 26 percent.

“The growth across many different aspects of home scent illustrates the heightened importance of this market, and the opportunity for further development,” said Grant. “This is still a niche in the prestige fragrance arena, and all signs are that home scents still have the upside for even more expansion.”

Home scents suppliers are among the many companies that will be featured at ECRM's upcoming Housewares, Household, GM EPPS and Value Merchandise EPPS. Click here to see some of the products that will be featured.