Home fragrances are an accessory, not a necessity. The products offered by this industry give people an opportunity to add character and depth to their home environment. It is also a chance to give each room its own feeling if you want.
Even though the global home fragrance industry offers tens of thousands of different smells, humans can detect at least 1 trillion different scents. That is possible because there are 10 million smell receptors in the average person’s nose. Everyone smells things slightly differently, which means how you perceive a fragrance is unique to you.
Smell is also the most memorable sense that people have. Even after one year, people can remember a smell with 65% accuracy. Visual recall of the same event is just 50% and that’s after just 3 months have passed.
Important Home Fragrance Industry Statistics
#1. Candles are the fastest-growing and largest category for the home fragrance industry. These products account for over 41% of the total sales in the market. Yankee Candle continues to be the dominant brand for the industry, selling through stores like Walmart. (Perfumer and Flavorist)
#2. In 2017, online sales for home fragrances accounted for 10.6% of the revenues that the industry was able to generate. (Perfumer and Flavorist)
#3. 50% of consumers in the United States say that they use home fragrances as a way to relax. 35% say that products offered by the industry help them to feel “cozy.” Another 30% say that home fragrance products help them to have “uplifted spirits.” (Perfumer and Flavorist)
#4. Prestige home scent products were valued at $80.4 million in 2017, representing a 59% increase over the year before. After candles, the two most popular products sold by the industry are diffusers and home ancillary gift sets. (Perfumer and Flavorist)
#5. Essential oils manufacturing in the United States grew by 2.4% over the past 5 years to reach total revenues of $1 billion. At the same time, however, the number of businesses involved in the manufacturing process decreased by 1.7%, with the industry laying off 1.2% of its employees. (IBIS World)
#6. About 45 firms are currently engaged in the manufacturing of essential oils in the United States, offering job opportunities to 1,300 people. (IBIS World)
#7. 90% of the candles which are purchased from the home fragrance industry in the United States are bought by women. (National Candle Association)
#8. Sales of candles in the United States total more than $3.2 billion per year when the sales of candle accessories are excluded from those figures. (Mintel)
#9. 70% of the households in the United States use at least one home fragrance product on a regular basis. Scent cost, color, and shape are the most important factors for consumers who are making a purchase. (National Candle Association)
#10. The average retail price for a votive candle in the United States is $1.99. For a jar candle or a large pillar, the average cost is $35. For whole-home candles that provide an impactful fragrance, the price may be $200 or more. (National Candle Association)
#11. About 805 of the candles which are made by the United States come from member companies of the National Candle Association. Most candles are sold in specialty shops, department stores, or mass merchandisers. (National Candle Association)
#12. 35% of the candles which are purchased in the United States each year occur during the December holiday shopping season. (National Candle Association)
#13. Major home fragrance manufacturers in the United States offer up to 2,000 varieties of candles within their product lines. For the overall market, more than 10,000 different scents are currently available for the home. (National Candle Association)
#14. Over 1 billion pounds of wax is used by the home fragrance industry each year to produce the candles which are sold in the United States. (Medium)
#15. 42% of consumers say that they use home fragrance products in the living room, which is the most popular location in the home. 18% say that they use them in the kitchen, while 13% say the bedroom is their top priority. (Medium)
#16. 20% of women say that they use candles as a way to decorate their home. (Medium)
#17. Candles are offered as a gift during the holidays most often, with 76% of industry customers saying that they view it as an appropriate gift. That is followed by offering a candle as a housewarming gift (74%), a dinner party gift (66%), a thank you gift (61%), and a birthday gift (58%). (Medium)
#18. 75% of people who purchase candles from the home fragrance industry will use their products for 4 hours or less during each session. (National Candle Association)
#19. The fragrance of a candle is the most important characteristic of a purchase, with 75% of customers saying it is “very” or “extremely” important for their selection. (National Candle Association)
#20. Candle manufacturing in the United States has actually declined by 3.4% over the past 5 years in revenues, however, even though sales figures have been climbing. The number of businesses involved in candle manufacturing has declined by 2.3%, while employment opportunities have declined by 3.1%. (IBIS World)
#21. In total, about 7,000 people are employed in the sales, manufacturing, and distribution of candles in the United States. (San Francisco Chronicle)
Home Fragrance Industry Trends and Analysis
Home fragrance preferences change throughout the year, which is why this industry has unique opportunities to reach consumers. With the average person going through an industry product once per week, there are 52+ selling opportunities available each year for each customer.
For CandleScience, they have broken these opportunities down into seasonal, classic, and year-round categories. In Fall, Pumpkin Spice and Apple Harvest are popular scents. In Spring, Sea Salt and Orchid or Love Spell become more popular. Then Amber Noir, White Tea, or Black Sea are popular all year long.
The struggle for those in this industry is one of scale. Top manufacturers are producing thousands of different scents each year. That creates a unique barrier to market entry for small suppliers. That’s why you have two distinctive groups for this industry: mass producers and artisan creators.
Over the next 5-year period, expect growth to continue at current levels for the industry. New challengers may try to take on Yankee Candles to disrupt the market, but it should not affect overall industry revenues. People want their home to smell nice. The home fragrance industry helps to make that happen.