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Kline: Home Fragrance Segment Growing

The home fragrances market in the U.S. outpaced the previous year’s growth through 2017, with Internet sales playing an important role in the market’s performance, according to Kline’s “Home Fragrances: U.S. Market Analysis and Opportunities” report.

The direct sales channel gained at a rate of 10% in 2017, while candle sales through the channel grew above the rate.

Among market developments, Kline noted, Yankee Candle further penetrated the mass market in 2017, landing on Walmart sales floors in the spring, while its parent company, Newell Brands, opened it first ever experiential pop-up shop during the holiday season. Newell also added WoodWick and Chesapeake Bay Candle brands to its home fragrance portfolio in 2017.

Candles remained the largest product segment in the category in 2017, contributing more than 41% to overall market sales. In a segment driven by luxury producers that recorded double average growth, candles emerged as the fastest growing product form in the market.

Diffusers enjoyed growth and enticed the market by being particularly innovative, Kline noted, with fragrance meeting technology. New smart scent diffusers from brands like Moodo and Aera gave consumers the ability to control and customize their home scent experiences.

“This market, especially the candles category, continues to perform well as consumers remain attracted to these products for their beautiful designs, sensory experiences, and giftable aesthetic,” said Dana Kreutzer, senior analyst in Kline’s consumer products practice. “Moreover, e-commerce and technology are transforming this segment with new user experiences, where luxury brands and small start-ups alike are racing to embrace e-commerce, making this channel even stronger.”