The U.S. Market for Home Fragrances

 
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Published Jun 1, 2002 | 280 Pages | Pub ID: LA691402

Special Offer. Now 50% off the original price of $3000.
Innovative new scents and delivery systems, products that resemble decorative accessories, the lure of aromatherapy in an increasingly stressful world… These factors have rallied the U.S. home fragrance market, now worth $2.7 billion. Even as growth in the once-explosive candle segment slows, new offerings in air fresheners and environmental fragrances pick up the slack. And as consumers increasingly look to the home as a haven from society’s ills, sales will approach $3.5 billion by 2006. This new Packaged Facts report provides a comprehensive analysis of the U.S. market for home fragrances, including the consumer environment; "mass" and "class" channels and the crossover trends that enhance sales; and retail figures for both the air freshener and environmental fragrance categories, going back 10 years. Also featured: IRI share data; Simmons demographic data; and competitive profiles of heavy hitters Belae Brands, Blyth Industries, Coty, S.C. Johnson, Dial, and Pennzoil Quaker State.
  1. Executive Summary
    Executive Summary
    • Products Covered
    • Report Methodology
    • Home Fragrances and Aromatherapy
    • Product Forms: Environmental Fragrances
    • Scented Candles
    • Other Environmental Fragrances
    • Product Forms: Air Fresheners
    • Home Air Fresheners
    • Automobile Air Fresheners
    • Regulatory Environment
    • Retail Market Approaches $2.8 Billion in 2001
    • Environmental Fragrance Sales Decline 4% to $1.8 Billion
    • Air Freshener Sales Reach $973 Million
    • Table 1-1: Estimated U.S. Retail Sales and Growth of Home Fragrance Products, by Category, 1997-2001 (dollars): environmental fragrance products, air fresheners
    • Auto Segment Once Drove Air Freshener Growth, but Home Segment Accelerates
    • Table 1-2: Estimated Retail Sales and Growth of Air Freshener Products, by Segment, 1997-2001 (dollars): home air fresheners, automotive air fresheners
    • Environmental Fragrances Account for Nearly Two-Thirds of Home Fragrance Sales
    • Scented Candles Make up Vast Majority of Environmental Fragrance Category
    • Share by Retail Channel
    • Factors in Future Market Growth
    • Home Plays More Roles
    • More Households Mean More Potential Consumers of Home Fragrances
    • Product Innovations Generate Excitement
    • Competition from Scented Cleaning Products
    • Aromatherapy under Fire for Unproven Claims
    • Health Concerns: Dangerous Fumes from Candles, Incense
    • Sales of Home Fragrance Products to Top $3.4 Billion by 2006
    • Hundreds of Companies Market Home Fragrances
    • S.C. Johnson & Son, Inc.
    • Blyth, Inc.
    • Intimate Brands
    • The Dial Corporation
    • Reckitt Benckiser plc
    • Lancaster Colony Corporation
    • The Yankee Candle Company
    • Wicks ’n Sticks
    • Pennzoil-Quaker State Company (subsidiary of Shell Oil)
    • Illuminations, Inc.
    • American Greetings Corporation
    • Table 1-3: Share of U.S. Retail Dollar Sales of Home Fragrances, 2001 (percent): 11 marketers
    • Product and Marketing Trends
    • New Fragrances Make For Perpetual Novelty
    • Aromatherapy
    • Odor-Fighting Products
    • Plug-in Introductions—Mostly New Scents for Established Lines
    • Candles in Bath and Body Lines
    • Potpourri that Is Not Potpourri
    • Home Fragrances Marketed through a Wide Range of Outlets
    • Mass-Market
    • Prestige
    • Natural Food Stores
    • Mail Order, Direct Selling, and the Internet
    • Mass Merchandisers Account for Half of Home Fragrance Sales in Mass Channels
    • Specialty Stores Account for 70% of Home Fragrance Sales in Prestige Outlets
    • Demographic Data Limited to Air Fresheners and Room Deodorizers
    • Simmons Data Confirm Rising Air Freshener Usage
    • Heavy Users Responsible for Nearly Half of Air Freshener Consumption
    • Significance of the Insignificant: Gender and Age
    • Men and Women Equally Likely to Use Home Air Fresheners
    • Age of Little Significance
    • Overall, Air Freshener Users Mildly Downscale
    • Ethnic Preferences
    • Usage Highest in the South
  2. The Products
    Scope of Report
    • Environmental Fragrance Products and Air Fresheners
    • Products Not Covered

    Olfaction
    • Smell: the Mysterious Fifth Sense
    • What Makes a Substance “Smellable”
    • The Olfactory System
    • Theories of Olfaction
    • Smell More Important for Flavor Detection than Taste
    • Innate Ability to Detect the Malodorous?
    • Individual Differences in Olfactory Sensitivity
    • Classifying Odors
    • Fragrance Can Affect Mood
    • Personal Response to Individual Scents Is Learned
    • Scents Can Influence Behavior
    • Pheromones: Better Loving through Chemistry
    • Inability to Smell Diminishes Quality of Life
    • An Ancient Healing Art Makes a Comeback . . .
    • . . . But Does Aromatherapy Work?
    • What You Call Aromatherapy May Actually Be Aroma-Chology®
    • Table 2-1: Key Distinctions between Aroma-Chology® and Aromatherapy
    • Fragrance Hazards
    • Table 2-2: Chemicals Present in Products and Spaces (number): 6 products
    • Environmental Illnesses Caused by Poor Air Quality
    • Table 2-3: Health Risks of Chemicals Found in Home Fragrances (listing): 14 hazardous constituents

    Historical Background
    • Aromatics May Have Been Used as Long Ago as 7000 B.C.
    • First Medicinal, Religious, Magical Uses around 5000 B.C.
    • Egyptians Believed Fragrances Were Sacred, Used Them for Healing
    • Ancient Greeks and Romans More Sophisticated Users of Fragrance for Therapeutic Purposes
    • Alchemy Advances the Art of Distilling Essential Oils
    • Chinese and Japanese Extravagant Users of Fragrance
    • Bubonic Plague Spurs Increased Use of Fragrance
    • During the Renaissance, Italy Becomes Center of Fragrance World, then Bows to France
    • Synthetics: the Advent of Modern Fragrancing
    • Indians in the Americas Used Aromatics for Healing and Ritual
    • Fragrances Spurned in the United States until 1920s
    • Experiments Inspire French Chemist to Coin the Term “Aromatherapy”
    • First Commercial Air Fresheners Appear in 1940s
    • Aerosol Technology Popularizes the Product
    • Environmental Fragrances Reached a Mass Audience in the 1960s
    • Advances in Technology Expand Product Variety
    • The Next Wave: Digital Scents

    Product Categories, Forms, and Uses
    • Two Main Product Categories
    • Environmental Fragrance Category Made up of Two Product Segments
    • Scented Candles
    • Other Environmental Fragrances
    • Table 2-4: Selected Essential Oils and Their Purported Aromatherapeutic Effects/Targets (list): 18 oils, 27 effects
    • Air Fresheners Can Be Categorized Several Ways
    • Home Air Fresheners
    • Automobile Air Fresheners
    • Two Types of Distribution Channels: Mass-Market and Prestige

    Ingredients
    • Home Fragrance Formulas Vary Widely
    • Eight Categories of Pleasing Scents
    • Aromatic Gums and Resins
    • Dried Botanicals
    • Table 2-5: Examples of Dried Botanical Ingredients Found in Potpourri (listing): 55 ingredients
    • Scented Oils and Distillation Methods
    • Synthetic Compounds
    • Fixatives Stabilize the Fragrance

    Packaging and Labeling
    • Packaging Reflects Products’ Evolution to Decorative Accessory
    • Some Mass-Market Products Packaged to Resemble Decorative Accessories
    • Some Auto Air Fresheners Decorative, Too
    • Labeling Reflects Messages of “Natural” and “Simple”

    Regulation of Home Fragrances
    • Fragrance Industry Self-Regulated
    • FDA: Aromatherapy Products Are “Drugs”
    • Smell Sells: Is Environmental Conditioning Ethical?
    • FDA Washes Hands of Matter; EPA, OSHA Are Hands-on
    • Most Restrictive Legislation Involves Aerosols
    • First VOC Emissions Rule Affects Air Fresheners
    • EPA Warns of Pollutants from Candles
  3. The Market
    Market Size and Growth
    • Various Sources for Tracking Sales
    • Retail Market Approaches $2.8 Billion in 2001
    • Environmental Fragrances: Twilight Descends
    • Air Freshener Sales Rally
    • Table 3-1: Estimated U.S. Retail Sales and Growth of Home Fragrance Products by Category, 1997-2001 (dollars): environmental fragrance products, air fresheners
    • Auto Segment Once Drove Air Freshener Growth, But Home Segment Accelerates
    • Figure 3-1: Estimated U.S. Retail Sales and Growth of Home Fragrance Products, 1997-2001 (dollars)
    • Table 3-2: Estimated Retail Sales and Growth of Air Freshener Products, by Segment, 1997-2001 (dollars): home air fresheners, automotive air fresheners

    Market Composition
    • Environmental Fragrances Account for Nearly Two-Thirds of Home Fragrance Sales
    • Scented Candles Make up Vast Majority of Environmental Fragrance Category
    • Table 3-3: Share of U.S. Retail Sales of Home Fragrance Products by Category, 1997-2001 (percent): environmental fragrances, air fresheners
    • Mass-Market Outlets Continue to Gain Share of Sales by Retail Channel
    • Table 3-4: Share of the U.S. Home Fragrance Market Retail Dollar Sales, by Retail Channel, 1998 vs. 2001 (percent): mass market, unmonitored
    • Table 3-5: Share of Environmental Fragrances Retail Dollar Sales, 1998 vs. 2001 (percent): mass market, unmonitored
    • Break-Out of Sales by Mass-Market Outlet Type
    • Table 3-6: Share of U.S. Mass-Market Sales of Home Fragrance Products, by Retail Outlet, 1998 vs. 2001 (percent): mass merchandisers, supermarkets, drugstores
    • Environmental Fragrance Sales Mainly via Mass Merchandisers
    • Table 3-7: Share of U.S. Mass-Market Retail Channel Sales of Various Types of Home Fragrance Products, 1998 vs. 2001 (percent): mass merchandisers, supermarkets, drugstores; 4 types
    • Use of Air Fresheners Much Higher in South
    • Table 3-8: Regional Use of Air Fresheners/Room Deodorizers, 2000 (numbers): overall, heavy, medium
    • Seasonality of Sales: Product Introductions, Gift Sets, Nostalgia, Tradition Drive Christmas Sales of Environmental Fragrances
    • Over One-third of Candle Sales Occur in December
    • Mother’s Day Also a Peak Period for Environmental Fragrances

    Factors in Future Growth
    • Nostalgia for a Simpler Time
    • Home Plays More Roles
    • Product Innovations Generate Excitement
    • Consumers Buy “Gifts” for Themselves
    • Home Fragrance Consumers Use More Products
    • Competition from Scented Cleaning Products
    • More Households Mean More Potential Consumers of Home Fragrances
    • Table 3-9: Numbers of U.S. Households, 2001-2006
    • Retail Expansion
    • Aromatherapy under Fire for Unproven Claims
    • Health Concerns: Danger from Candles, Incense

    Projected Market Growth
    • Sales of Home Fragrance Products to Top $3.4 Billion by 2006
    • Projected Growth in Environmental Fragrance Product Sales over Forecast Period
    • Air Fresheners Rebound
    • Table 3-10: Projected U.S. Retail Sales of Home Fragrance Products, by Category, 2001-2006 (dollars): environmental fragrance products, air fresheners
    • Figure 3-2: Projected U.S. Retail Sales of Home Fragrance Products, 2001-2006 (dollars)
  4. The Marketers
    The Marketers
    • Hundreds of Companies Market Home Fragrances
    • Diverse Assortment of Companies
    • Specialization by Sales Channel
    • Household Names: S.C. Johnson, Reckitt Benckiser, Dial, and Lancaster Colony
    • S.C. Johnson
    • Reckitt Benckiser plc
    • The Dial Corporation
    • Lancaster Colony Corporation
    • Specialty Retailers: Yankee Candle Company and Intimate Brands
    • The Yankee Candle Company
    • Intimate Brands
    • Blyth In a Class by Itself
    • Automotive Supply Marketers
    • The “Natural” Niche
    • Cosmetics and Toiletries Companies
    • Table 4-1: Selected Major Marketers of Home Fragrance Products (listing): 15 marketers, 106 brands
    • Table 4-2: Selected Minor Marketers of Home Fragrance Products (listing): 119 marketers; 157 brands

    Marketer Shares: The Home Fragrance Market
    • Note on Share Data
    • Direct Home Fragrance Sales Not Covered in Share Data
    • Natural Niche Shares Unknown
    • Top Three Marketers Account for 48% of Sales
    • Five Marketers Have Shares of between 5% and 7%
    • Three Other Marketers Enjoy Shares of over 1%
    • Table 4-3: Share of U.S. Retail Dollar Sales of Home Fragrances, 2001 (percent): 11 marketers

    Marketer and Brand Shares: The Air Freshener Category
    • Top Three Companies Account for 80.1% of Sales
    • S.C. Johnson & Sons Leads with 46.3% of the Category
    • Reckitt Benckiser and Dial Corporation Make up Second Tier
    • Two Other Marketers Have Shares over 1%
    • Table 4-4: Marketer and Brand Shares of U.S. Air Freshener Sales, 2001 (percent): 5 marketers; 14 brands

    Marketer and Brand Shares: The Environmental Fragrance Category
    • Note on Share Data for Blyth, Inc.
    • Blyth Leads with 28.6%
    • Intimate Brands in Second Place
    • Three Companies Have Shares in High Single Digits
    • Table 4-5: Marketer and Brand Shares of U.S. Environmental Fragrance Retail Dollar Sales, 2001 (percent): 8 marketers; 13 brands

    The Competitive Situation
    • Competition Most Intense in Air Fresheners
    • Home Air Fresheners Compete on Secondary Attributes
    • Home Air Freshener Leaders Branch out into Scented Candles
    • Pennzoil-Quaker State Rules the Little Realm of Automotive Air Fresheners
    • Intimate Brands Muscles in on Environmental Fragrances Category
    • All Major Candle Marketers Except Yankee Candles Suffer

    Competitive Profiles: American Greetings Corporation
    • Sales of $2.4 Billion in Fiscal 2002
    • Greeting Card Business Leads Company into Environmental Fragrances
    • GuildHouse
    • Gibson Greetings

    Competitive Profile: Blyth, Inc.
    • Sales of $1.2 Billion in Fiscal 2002
    • A Broad Base within its Industry
    • Rapid Product Development and a Wide Assortment of Brands
    • Acquisitions and Divestitures

    Competitive Profile: The Dial Corporation
    • Sales of $1.7 Billion in 2001
    • Home Fragrance Products
    • Marketing Stresses Home over New Age Themes

    Competitive Profile: Illuminations, Inc.
    • Privately Held Company with Sales of $100 Million
    • Latecomer Facing New Competition

    Competitive Profile: Intimate Brands, Inc.
    • Sales of $5 Billion in 2001
    • Catalogs and Specialty Stores
    • Bath & Body Works, Inc.
    • White Barn Candle Company

    Competitive Profile: Lancaster Colony Corporation
    • Sales of $1.1 Billion in 2001
    • Three Autonomous Divisions
    • Value Pricing and Focus on Mass Merchandisers
    • Candle-Lite’s Declining Sales in 2000 and 2001
    • Healing Gardens Launched in Licensing Agreement with Coty

    Competitive Profile: Pennzoil-Quaker State Company
    • Sales of $2.3 Billion in 2001
    • Jiffy Lube and 1,300 Auto Product Brands
    • Medo Dominates the Automotive Air Freshener Segment
    • New Products in 2001

    Competitive Profile: S.C. Johnson & Son, Inc.
    • Privately Held Company with Sales of $4.5 Billion in 2001
    • Brands that Lead in Their Categories
    • Leading Marketer of Home Fragrances in the U.S.
    • Plug-in Pioneer Losing Share to Imitators
    • Recent New Product Initiatives
    • Products that Straddle Categories and Mix Product Forms

    Competitive Profile: Reckitt Benckiser plc
    • Sales of $5.1 Billion in 2001
    • Leading Brands and Global Reach
    • Number Two Air Freshener, Gaining on Number One
    • Wizard Sets the Pace with Wizard Scented Oil Adjustable Air Freshener
    • Wizard Stick-Ups—Played out?

    Competitive Profile: The Yankee Candle Company, Inc.
    • Sales of $380 Million in 2001
    • From Melted Crayons to 2,000 SKUs
    • Yankee Candle Retailing
    • Scents Keep Ye Olde New

    Product and Marketing Trends
    • Pace of Product Introductions Is Rapid
    • Fragrances Help Maintain Excitement
    • Baking and Kitchen Fragrances
    • Table 4-6: Selected New Home Fragrance Products with Kitchen Scents, 1999-2001 (listing): 9 marketers, 9 brands
    • Fruit Fragrances
    • Table 4-7: Selected Home Fragrance Introductions with Fruit Scents, 1999-2001 (listing): 15 marketers, 16 brands
    • Outdoor Scents
    • Table 4-8: Selected New Home Fragrances with Outdoor Scents, 1999-2001 (listing): 6 marketers, 8 brands
    • Aromatherapy
    • Table 4-9: Selected New Home Fragrances with Aromatherapy Positionings, 1999-2001 (listing): 19 marketers, 20 brands
    • New Odor-Fighting Products
    • Table 4-10: Selected New Home Fragrances with Odor-Fighting Positionings, 1999-2001 (listing): 14 marketers, 14 brands
    • Plug-In Introductions—Mostly New Scents for Established Lines
    • Table 4-11: Selected New Introductions of Electric Air Fresheners, 1999-2001 (listing): 7 marketers, 7 brands
    • Candles in Bath/Body Lines
    • Table 4-12: Selected New Introductions of Candles in Bath and Body Lines, 1999-2001 (listing): 8 marketers, 8 brands
    • Potpourri that Isn’t Potpourri
    • Table 4-13: Selected New Introductions of Non-Potpourri Products that Are Called “Potpourri,” 1999-2001 (listing): 4 marketers, 5 brands
    • Scratch ’n Sniff
    • Table 4-14: Selected New Introductions of Home Fragrance Products in Scratch ’n Sniff Packagings, 1999-2001 (listing): 4 marketers, 4 brands

    Consumer Advertising Expenditures
    • Ad Expenditures of around $82 Million
    • S.C. Johnson’s Glade Represents 92% of Ad Sum
    • No Renuzit Spending in 2000
    • Three Marketers Account for Remaining Ad Dollars

    Consumer Advertising Positioning
    • Home Fragrances as Decoration
    • Odor Removal as Transformative
    • Home and the Holidays
    • Practical Side of Air Fresheners
    • Examples of Consumer Advertising

    Consumer Promotions
    • Most Consumer Promotions Limited to a Few Companies Operating in Mass-Market
    • Coupon Promotions Are Standard and Coordinated with Advertising
    • Bonus Packs and Rebates
    • Tie-ins with Cartoon Characters
    • Contests, Events
  5. Retail and Distribution
    Distribution
    • Distribution Methods Vary with Marketer and Type of Outlet
    • Shipping through Distributors vs. Direct Distribution
    • Shipping through Independent Distributors
    • Direct Distribution

    At the Retail Level: Overview
    • Home Fragrances Marketed through a Wide Range of Outlets
    • Mass, Prestige, and “Alternative”
    • Mass-Market
    • Prestige
    • Natural Food Stores and Alternative Retail
    • Mail Order, Direct Selling and the Internet

    At the Retail Level: Mass-Market
    • Mass Merchandisers Account for Half of Home Fragrance Sales in Monitored Outlets
    • Mass Merchandisers’ Advantage in Air Fresheners Still Greater
    • Share of Home and Automotive Air Fresheners
    • Mass Merchandisers Also Lead in Sales of Environmental Fragrances at Mass
    • Air Fresheners Often Placed with Household Cleaners
    • Environmental Fragrances Often Cross-Merchandised
    • Shelf Space Varies
    • Margins Differ by Product Type
    • Air Freshener Displays Focus on Major Brands
    • Candle Displays Encourage Impulse Purchases
    • Private Labels a Greater Factor in Environmental Fragrances than in Air Fresheners
    • Pricing in Mass-Market
    • Advertising and Promotions at the Retail Level

    At the Retail Level: Prestige Outlets
    • Dominant Retailers Are Specialty Stores, Gift Shops, and Department Stores
    • Prestige Outlets Carry Few Air Fresheners
    • Specialty Stores
    • Assortment in Specialty Stores
    • Display in Non-Dedicated Outlets
    • Display in Gift Shops
    • Display in Department Stores
    • Pricing and Margins in Prestige Outlets
    • Promotions Rare in Prestige Outlets

    At the Retail Level: Natural Food Stores and Alternative Retail
    • Natural Food Stores
    • Home Fragrances in Alternative Retail: Catalogs, Direct Marketing, and the Internet
    • Catalogs
    • Direct Marketing
    • Internet
  6. The Consumer
    Note on Sources
    • Interpreting Simmons Data
    • Consumer Data Limited

    The Home Air Freshener Consumer
    • Simmons Data Confirm Rising Usage
    • Heavy Users Responsible for Nearly Half of Consumption
    • Figure 6-1: U.S. Use of Home Air Fresheners, by Frequency of Use, 2001 (percent)
    • For All and for Light Users, Read “Typical Adult American”
    • Medium- and Heavy-User Groups More Distinct
    • Significance of the Insignificant: Gender and Age
    • Men and Women Equally Likely to Use Home Air Fresheners
    • Age of Little Significance
    • Overall, Air Freshener Users Mildly Downscale
    • Table 6-1: Demographic Characteristics Favoring Adult Use of Home Air Fresheners, by Frequency of Use, 2001 (listing): all users, medium users, heavy users; 13 factors
    • Ethnic Preferences
    • Usage Highest in the South
    • Figure 6-2: Share of Heavy Users of Home Air Fresheners, by Ethnic Group (percent)
    • Figure 6-3: Share of Heavy Users of Home Air Fresheners, by Region (percent)
    • Glade Leads in Number of Users
    • Table 6-2: Use of Home Air Freshener Brands, 2001 (number, percent): 3 brands
    • Few Factors Distinguish Individual Home Air Freshener Brands
    • Table 6-3: Demographic Factors in Use of Home Air Fresheners, by Brand, 2001 (adults, in previous 6 months) (listing): Airwick (Wizard), Glade, Renuzit; 13 factors

    Appendix I: Examples of consumer advertising and promotions
    Appendix II: Addresses of selected marketers