Home Fragrance Products in the U.S.: Air Fresheners, Candles and Specialty Products

6th Edition

Publication Date	April 2008
Publisher	Packaged Facts
Product Type	Report
Pages	162
ISBN Number	not applicable
Product Code	PKF00108

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Summary

The market for home fragrance products in the United States has shifted over the last several years with mass-market air freshener diffusers growing at the expense of other product forms. Candles, which account for nearly half of the total market, have been impacted in particular by consumers' desire for technology "gadgets" like diffusers. The greatest impact on the competitive structure of the market has been driven by the entrance of Procter & Gamble into the category. Leveraging its successful Febreze fabric refresher brand into air fresheners and candles, P&G has risen to become the third largest mass market player in just three years. P&G's success has disrupted the mass market landscape, and threatened traditional leaders SC Johnson and Reckitt Benckiser.

This updated Packaged Facts report examines the trends impacting the market, from technology innovations to the growth of the air neutralization segment. It analyzes consumers' desire for multiple product forms throughout their homes, and reasons driving use of each form. The report looks at the dynamics specific to mass and specialty retailing - which is growing, who is performing best, what is selling through each channel. The report also provides discussions of leading and interesting players in each channel including Procter & Gamble, SC Johnson, Reckitt Benckiser, Dial Corp., Yankee Candle and Method, a new upscale entrant in the mass market.

Report Methodology

The information contained in this report was obtained from both primary and secondary research. Primary research entailed consultation with industry participants and on-site examination of retailing channels. Secondary research entailed data-gathering from myriad business sources, including Information Resources, Inc.'s (IRI) InfoScan Review; trade publications and newsletters; articles in consumer business newspapers and magazines; government data; information from industry and non-governmental associations, annual reports, 10Ks, and other financial releases from public companies; and other reports by Packaged Facts. Information on new product introductions is derived from reports in the trade press and online, as well as detailed data from Datamonitor's Productscan Online service. Analysis of consumer attitudes and demographics primarily derives from the Simmons Market Research Bureau (New York, NY) Spring 2007 full-year (May 2006-June 2007) adult consumer survey, which is based on 25,375 respondents age 18 or over.

How You Will Benefit from this Report

If you are in the home fragrance market or looking to enter, or if you're a supplier, retailer, or analyst this report is invaluable as it provides a comprehensive package of information and insight about market, product, consumer, and retail trends. You will gain a thorough understanding of the current market for home fragrance products, as well as projected markets and trends through 2012.

This report will help:

Marketing Managers identify market opportunities and develop targeted promotion plans.
Research and development professionals stay on top of competitor initiatives and explore demand for home fragrance products.
Advertising agencies to develop messages and images that compel consumers to purchase home fragrances.
Business development executives understand the dynamics of the market and identify possible partnerships.
Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

Content

Chapter 1 Executive Summary
- Scope and Methodology
- Scope of the Report
- Methodology
- Market Definition
- Market Size and Growth
- Historical sales trends
- List of Tables
  - Table 1-1 U.S. Sales of Home Fragrance Products, 2003-2007
- Market composition by product category
- List of Figures
  - Figure 1-1 U.S. Retail Sales of Home Fragrance Products, 2003-2007
- Market composition by retail channel
- List of Figures
  - Figure 1-2 U.S. Retail Sales of Home Fragrance Products by Retail Channel, 2003-2007
- Factors Affecting Market Growth
- Procter & Gamble enters the mass market
- List of Tables
  - Table 1-2 Procter & Gamble U.S. Mass Retail Sales of Home Fragrance Products, 2003-2007
- Higher priced products drive growth
- List of Tables
  - Table 1-3 Average prices of Mass Home Fragrance Products, 2003-2007
- Diffusers transform market
- List of Tables
  - Table 1-4 U.S. Mass Retail Sales of Select Active Diffuser Products, 2003-2007
- Innovation drives growth
- New odor elimination products revive room sprays
- List of Tables
  - Table 1-5 U.S. Mass Retail Sales of Select Odor Elimination Air Fresheners, 2003-2007
- Increasing number of households
- List of Figures
  - Figure 1-3 Number of U.S. Households, 2000-2007
- The Housing Boom
- Larger homes require more fragrance products
- List of Tables
  - Table 1-6 Median square feet of floor area, new one family houses 1985-2005
  - Table 1-7 Number of bathrooms in new one family houses 1990-2006 % distribution
- Investing in the home
- The Multi-tasking home
- Raw material prices impact manufacturers
- Projected Market Growth
- List of Figures
  - Figure 1-4 Projected U.S. Sales of Home Fragrance Products, 2007-2012
- Negative Drivers
- Positive Drivers
- The Marketers
- Highly concentrated market
- List of Tables
  - Table 1-8 Leading Marketers, U.S. Overall Market Home Fragrances, 2007
- List of Figures
  - Figure 1-3 Leading Marketers, U.S. Overall Market Home Fragrances, 2007
- SC Johnson remains the mass leader but sales declining
- List of Tables
  - Table 1-9 Leading Marketers, U.S. Mass Retail Sales of Home Air Fresheners, 2003-2007
- Big 4 players control mass market
- List of Tables
  - Table 1-10 Market Shares of Leading Marketers, U.S. Mass Retail Sales of Home Air Fresheners, 2004-2007
- List of Figures
  - Figure 1-4 Market Shares of Leading Marketers, U.S. Mass Retail Sales of Home Air Fresheners, 2004-2007
- Private label a major factor in candle category
- Mergers, Acquisitions, Divestitures
- Marketing and New Product Trends
- Marketing practices and trends
- Advertising and promotion practices and trends
- Heavy advertising investment by leading mass marketers
- Coupons get consumers to try
- Retailer circulars offer deals
- Unmeasured media spending on the rise
- Yankee Candle promotes to customers and consumers
- Limited Brands relies primarily on in-store merchandising
- Direct sellers promote to their consultants
- Internet
- Product Trends
- New product introductions rise dramatically
- List of Tables
  - Table 1-11 Reported New Deodorizers & Air Fresheners, 2004- 2007
- Innovation drives growth
- Diffusers transform market
- New odor elimination products revive room sprays
- Fresh, natural and eco-friendly claims for new products
- "Natural" is good for you, good for planet
- Aromatherapy remains popular
- Freshness a key fragrance trend
- Alternating scent to renew freshness
- Distribution and Sales
- Distribution Channels
- Market composition by retail channel
- List of Figures
  - Figure 5-1 U.S. Retail Sales of Home Fragrance Products by Retail Channel, 2007
- Home fragrance strategy varies by retail channel
- Mass Retailers
- Specialty Stores
- Direct Sales
- The Consumer
- About 75% of American households use air fresheners
- List of Tables
  - Table 1-12 Number of air fresheners used*
- Room spray most used product form
- List of Tables
  - Table 1-13 Air Freshener Product Form*
- Less educated, larger families, mobile home dwellers, and blacks lead usage
- List of Tables
  - Table 1-14 Demographic Characteristics of Air Freshener Users
- Glade still most used but Febreze catches up
- List of Tables
  - Table 1-15 Air Freshener Brand Usage 2005-2007
- List of Figures
  - Figure 1-5 Air Freshener Brand Usage 2005-2007
- Younger people help drive sales
- Women buy most candles; purchase driven by fragrance
Chapter 2 Market Size and Growth
- Scope of the Report
- Methodology
- Market Definition
- Industry Regulations
- Controversy over Air Fresheners
- Historical Sales Trends
- List of Tables
  - Table 2-1 U.S. Sales of Home Fragrance Products, 2003-2007
  - Table 2-2 U.S. Mass Retail Sales of Home Fragrance Products, 2003-2007
- Home Fragrance Sales Equal Household Cleaner Sales
- List of Tables
  - Table 2-3 U.S. Mass Retail Sales of Home Fragrance Products, Household Cleaners and Laundry Products 2007
- Unit Sales
- List of Tables
  - Table 2-4 U.S. Mass Retail Unit Sales of Home Fragrance Products,2003-2007Seasonality
  - Table 2-5 U.S. Mass Retail Sales of Candles, $ millions
- Market composition by product category
- List of Figures
  - Figure 2-1 U.S. Retail Sales of Home Fragrance Products, 2003-2007
- Market composition by retail channel
- List of Figures
  - Figure 2-2 U.S. Retail Sales of Home Fragrance Products by Retail Channel, 2003-2007
- Factors Affecting Market Growth
- Procter & Gamble enters the mass market
- List of Tables
  - Table 2-6 Procter & Gamble U.S. Mass Retail Sales of Home Fragrance Products, 2003-2007
- Higher priced products drive growth
- List of Tables
  - Table 2-7 Total and Average Retail Prices of Mass Home Fragrance Products, 2003-2007
  - Table 2-8 Retail Prices of Select Home Fragrance Products, 2008
- Diffusers transform market
- List of Tables
  - Table 2-9 U.S. Mass Retail Sales of Select Active Diffuser Products, 2003-2007
- Innovation drives growth
- New odor elimination products revive room sprays
- List of Tables
  - Table 2-10 U.S. Mass Retail Sales of Select Odor Elimination Air Fresheners, 2003-2007
- Home fragrance products make great gifts
- Increasing number of households
- List of Figures
  - Figure 2-3 Number of U.S. Households, 2000-2007
- The Housing Boom
- List of Tables
  - Table 2-11 Percent of Home Ownership
  - Table 2-12 Annual Existing Home Sales 2002-2007
  - Table 2-13 Annual New Home Sales/Median Annual Sales Price 1995-2006
- Larger homes require more fragrance products
- List of Tables
  - Table 2-14 Median square feet of floor area, new one family houses1985-2005Table 2-15 Number of bathrooms in new one family houses 1990-2006 % distribution
  - Table 2-16 Presence of Central Air-Conditioning in New One-Family Houses 1990-2006 % distribution
- Investing in the Home
- List of Tables
  - Table 2-17 U.S. Average Annual Consumer Expenditures, 2005
  - Table 2-18 Annual Home Remodeling Expenditures 1995-2005 - $ millions
- The Multi-tasking Home
- Big Spenders
- List of Tables
  - Table 2-19 Personal Income and Its Disposition - 2000-2005 ($ billions)
- List of Figures
  - Figure 2-4 U.S. Quarterly Personal Consumption Expenditures and Gross Domestic Product, 2005-2007 (in billion $)
- Raw Material Prices Impact Manufacturers
- List of Figures
  - Figure 2-5 Producer Price Index (PPI) of Crude Petroleum, 2004-2008
  - Figure 2-6 Producer Price Index (PPI) of Plastics Material & Resins Manufacturing, 2003-2008
  - Figure 2-7 Producer Price Index (PPI) of Metals and metal products,2004-2008
- Projected Market Growth
- List of Figures
  - Figure 2-8 Projected U.S. Sales of Home Fragrance Products, 2007-2012
- Negative Drivers
- List of Figures
  - Figure 2-9 Number of U.S. Households, 2007-2010
Chapter 3 The Marketers
- Highly concentrated market
- List of Tables
  - Table 3-1 Leading Marketers, U.S. Overall Market Home Fragrances, 2007
- List of Figures
  - Figure 3-1 Leading Marketers, U.S. Overall Market Home Fragrances, 2007
- SC Johnson remains the mass leader but sales declining
- List of Tables
  - Table 3-2 Leading Marketers, U.S. Mass Retail Sales of Home Air Fresheners, 2003-2007
- Big 4 players control mass market
- List of Tables
  - Table 3-3 Market Shares of Leading Marketers, U.S. Mass Retail Sales of Home Air Fresheners, 2004-2007
- List of Figures
  - Figure 3-2 Market Shares of Leading Marketers, U.S. Mass Retail Sales of Home Air Fresheners, 2004-2007
- SC Johnson biggest mass candle player
- List of Tables
  - Table 3-4 Leading Marketers, U.S. Mass Retail Sales of Candles, 2003-2007
  - Table 3-5 Leading Marketers, U.S. Mass Retail Sales of Candles, 2006-2007
- List of Figures
  - Figure 3-3 Market Shares of Leading Marketers, U.S. Mass Retail Sales of Candles, 2003-2007
- Private Label a Major Factor in Candle Category
- Mergers, Acquisitions, Divestitures
- Competitive Profiles
- SC Johnson & Son Inc.
- Company Profile
- Performance
- List of Tables
  - Table 3-6 SC Johnson's Sales of Home Air Fresheners, 2003-2007
  - Table 3-7 SC Johnson's Sales of Automobile Air Fresheners, 2003-2007
- Product portfolio
- New Products
- List of Tables
  - Table 3-8 SC Johnson Home Fragrance Line
- Strategy and Positioning
- List of Tables
  - Table 3-9 Consumer Use of Air Freshener Brands, 2005-2007
- Distribution
- Advertising and Promotion
- Future Outlook
- Reckitt Benckiser
- Company Profile
- Performance
- List of Tables
  - Table 3-10 Reckitt Benckiser's Sales of Home Air Fresheners, 2003-2007
- Product portfolio
- New Products
- List of Tables
  - Table 3-11 Reckitt Benckiser Home Fragrance Line
- Strategy and Positioning
- Distribution
- Advertising and Promotion
- Future Outlook
- Procter & Gamble
- Company Profile
- Performance
- List of Tables
  - Table 3-12 Procter & Gamble's Sales of Home Fragrance Products
- 2003-2007
- Product portfolio
- List of Tables
  - Table 3-13 Procter & Gamble's Home Fragrance Line
- Strategy and Positioning
- Distribution
- Advertising and Promotion
- Future Outlook
- Henkel (The Dial Corporation)
- Company Profile
- Performance
- List of Tables
  - Table 3-14 Dial's Sales of Home Air Fresheners, 2003-2007
- Product portfolio
- New Products
- List of Tables
  - Table 3-15 Dial Home Fragrance Line
- Strategy and Positioning
- Distribution
- Advertising and Promotion
- Future Outlook
- Yankee Candle Company
- Company Profile
- Performance
- Product portfolio
- List of Tables
  - Table 3-16 Yankee Candle Company Home Fragrance Line
- Aroma Naturals
- Illuminations
- Strategy and Positioning
- Distribution
- Advertising and Promotion
- Future Outlook
- Blyth Inc.
- Company Profile
- Performance
- Product portfolio
- List of Tables
  - Table 3-17 Blyth Home Fragrance Line
- Strategy and Positioning
- Distribution
- Advertising and Promotion
- Future Outlook
- Limited Brands Inc.
- Company Profile
- Performance
- Product portfolio
- List of Tables
  - Table 3-18 Limited Brands Home Fragrance Line
- Strategy and Positioning
- Distribution
- Advertising and Promotion
- Future Outlook
- Lancaster Colony Corporation
- Company Profile
- Performance
- Product portfolio
- List of Tables
  - Table 3-19 Candle-lite Home Fragrance Line
- Strategy and Positioning
- Distribution
- Advertising and Promotion
- Future Outlook
- Method
- Company Profile
- Performance
- Product portfolio
- List of Tables
  - Table 3-20 Method Home Fragrance Line
- Strategy and Positioning
- Distribution
- Advertising and Promotion
- Future Outlook
Chapter 4 Marketing and New Product Trends
- Marketing practices and trends
- Advertising and promotion practices and trends
- Heavy advertising investment by leading mass marketers
- Coupons get consumers to try
- List of Tables
  - Table 4-1 Coupons for Selected Home Fragrance Products
- Retailer circulars offer deals
- List of Tables
  - Table 4-2 Feature Retail Deals for Selected Home Fragrance Products
- Unmeasured media spending on the rise
- Mass marketers promoting in new ways
- Method blends traditional and viral marketing
- Yankee Candle promotes to customers and consumers
- Limited Brands relies primarily on in-store merchandising
- Direct sellers promote to their consultants
- Internet
- Product Trends
- New product introductions rise dramatically
- List of Tables
  - Table 4-3 Reported New Deodorizers & Air Fresheners, 2004- 2007
- Innovation drives growth
- Diffusers transform market
- List of Tables
  - Table 4-4 U.S. Mass Retail Sales of Select Active Diffuser Products,
- 2003-2007
- New odor elimination products revive room sprays
- List of Tables
  - Table 4-5 U.S. Mass Retail Sales of Select Odor Elimination Air Fresheners, 2003-2007
- Fresh, natural and eco-friendly claims for new products
- List of Tables
  - Table 4-6 Package Claims of Home Fragrance Products, 2004- 2007
- Natural is good for you, good for planet
- Aromatherapy remains popular
- Freshness a key fragrance trend
- List of Tables
  - Table 4-7 Top Fragrances of Home Fragrance Products, 2004- 2007
- Alternating scent to renew freshness
- List of Tables
  - Table 4-8 Selected Home Fragrance Product Introductions
Chapter 5 Distribution and Sales
- Distribution Channels
- Market composition by retail channel
- List of Figures
  - Figure 5-1 U.S. Retail Sales of Home Fragrance Products by Retail Channel, 2007
- List of Tables
  - Table 5-1 U.S. Mass Retail Sales of Home Fragrance Products, 2003-2007
- Home fragrance strategy varies by retail channel
- Mass Retailers
- Specialty Stores
- Direct Sales
- Key retailers and direct sellers
- Yankee Candle
- Limited Brands
- Blyth Inc.
- Pier 1 Imports
- Bed Bath & Beyond
- Home Interiors & Gifts, Inc
- L'Occitane
- Crabtree & Evelyn
- Whole Foods Market, Inc.
Chapter 6 The Consumer
- About 75% of American households use air fresheners
- List of Tables
  - Table 6-1 Number of air fresheners used*
- Room spray most used product form
- List of Tables
  - Table 6-2 Air Freshener Product Form*
- Less educated, larger families, mobile home dwellers, and blacks lead usage
- List of Tables
  - Table 6-3 Demographic Characteristics of Air Freshener Users
- Differences emerge when demographic data is analyzed by product form
- Age
- Race
- Region
- Education
- Household characteristics
- Income
- List of Tables
  - Table 6-4 Indexed Demographic Characteristics by Form
- Differences emerge when demographic data is analyzed by usage frequency
- Age
- Race
- Region
- Education
- Household characteristics
- Income
- List of Tables
  - Table 6-5 Demographic Characteristics by usage
  - Table 6-5[Cont.] Demographic Characteristics by usage
- Glade Still Most Used but Febreze Catches Up
- List of Tables
  - Table 6-6 Air Freshener Brand Usage 2005-2007
- List of Figures
  - Figure 6-1 Air Freshener Brand Usage 2005-2007
- Glade
- Febreze
- Airwick
- Renuzit
- Oust
- List of Tables
  - Table 6-7 Demographic Characteristics of Leading Brands
- Younger people help drive sales
- List of Figures
  - Figure 6-2 Characteristics of 18-24 age group (help I CAN'T MAKE THIS CHART LOOK BETTER)
- Psychographics
- List of Tables
  - Table 6-8 Psychographic Profile of Users of Air Fresheners by Product Form
  - Table 6-9 Psychographic Profile of Users of Air Fresheners by Number of Products Used in last 6 months
  - Table 6-9[Cont.} Psychographic Profile of Users of Air Fresheners by Number of Products Used in last 6 months
- Women buy most candles; purchase driven by fragrance