NPD: Home Fragrance Segment A Holiday Sales Opportunity

The NPD Group has identified home fragrance as a retail opportunity with consumers who are thinking about holiday entertaining.

Home fragrances are something consumers count on to provide guests with a pleasant visit, according to Scentiments, a new initiative from the market research organization.

Almost half of all home scent users said they are establishing an inviting and comfortable domestic atmosphere, according to data from Scentiments. With 84% using scented home products, women are more likely to increase diffusion of home scents when guests are expected. Men do this too, though to a lesser degree.

When applying home fragrances, consumers tend to stick within their favorite scent families, including sweet/fruity, tropical, food/baking, warm/woodsy, and clean/light. However, many switch from one scent to another on a seasonal basis, with about one-third of all home scent users saying they change their home fragrances when the seasons change. The number skews even higher among older 25 to 34 year old Millennials.

As for household variety, three-fourths of women may use different scents in different rooms, illustrating not only the importance of home fragrance to consumers, but also the need to find harmony and balance in scent combinations.

According to NPD’s retail tracking data, sales of prestige home scents spike in the fourth quarter, coinciding with seasonal holidays.

“As the upsurge in prestige sales and consumer statements attest, the home scents market is growing rapidly,” said Karen Grant, global beauty industry analyst, The NPD Group. “This is a reflection of the consumer movement towards a different type of gift to self: more holistic sensory experiences. Consumers tend to use candles, diffusers, and other scented home products not out of necessity, but out of a desire for a warm and intimate space that brings both the consumer and— especially during the holidays— their guests, comfort, joy, and positivity.”