Stress is a primary motivator for sales in many markets, but few places more so than in the home fragrance industry. Whether consumers are seeking to create a haven from the outside world or striving to recreate that relaxing spa experience in their own homes, a key element to designing the perfect sanctuary is fragrance.

As a result of this home-as-haven trend, the home fragrance market continues to be a rapidly developing and changing landscape, even in the face of a slow economy. Estimated to be worth $2.7 billion, the U.S. home fragrance market will continue to climb to $3.5 billion by 2006, according to New York-based Packaged Facts, a market research firm.

Newness Translates to On-Shelf Success
It has become the norm for fragrance forms to experience staggering double- and even triple-digit growth for a few years, then slow to a crawl as the next big thing takes off. And, more and more, the next big thing is coming from companies other than the three category leaders — S.C. Johnson, Reckitt Benckiser and The Dial Corporation.

As of the week ended May 18, 2003, the home air freshener market had dipped 2.7% compared to last year, according to Information Resources Inc., a Chicago-based market research firm. Industry leader, S.C. Johnson & Son, took a hit, losing 11.7% of its sales during that time period. Reckitt Benckiser, with its Wizard line, and The Dial Corporation showed sales gains of 8.5% and 3.7%, respectively. The Sara Lee Corporation, which produces the Ambi-Pur line of home freshening products, saw sales increases of 45.5% in same time period. Smaller, more specialized companies, including Vapor Products Co., California Scents and Natec Research also saw strong double-digit sales gains.

While S.C. Johnson’s Glade Plug-In home air fresheners, the leading brand at mass, was down 10.5% in the past year, the brand’s newer Press N Fresh freshener product was boosted by a television ad campaign to a 839% gain. Also making tremendous strides, according to Information Resources, was Dial’s Renuzit home air fresheners, which gained 237% at mass. The Renuzit brand also features a line of AromaSense products, including glass and pillar candles and home fragrance sprays.

While candles and diffusers have been the growth drivers in the home fragrance market for the past few years, Kline & Company Inc., a Little Falls, NJ-based market research firm, noted that these categories had relatively flat sales in 2002.

Electric air fresheners/diffusers posted a 135% gain from 1997 to 2002, going from $238 million to $559 million in the five-year period, according to Euromonitor International, the Chicago-based market researcher. While 2002 showed only modest gains, the segment is projected to garner double-digit growth of 12% during the next five years, bringing the category to almost $626 million by 2007.

While sprays and aerosol air fresheners dipped 13.7% from 1997 to 2002, going from $256 million to $221 million in five years, the segment is expected to regain its losses by 2007, stated Euromonitor.

The Prestige Leaders Add Line Extensions
The Yankee Candle Company and Blyth Inc. are considered to be the prestige home fragrance category leaders, according to Kline & Company. Both are experiencing growth.

In an attempt to expand its offerings beyond the candle market, Yankee Candle built up its home fragrance line by adding potpourri, room sprays and linen sprays in fall 2002. “The company as a whole is looking at other opportunities to extend its expertise in fragrance,” reported Vikki Lenhart, brand manager for home fragrancing and personal care, Yankee Candle.

Lenhart stated that the company offers anywhere from six to 10 fragrances in potpourri and room sprays, and about 12 in the sachet line. “They are all Top 20 Housewarmer fragrances, so when we launch something, we really benchmark off the success of candles and tie the lines together that way,” she explained.

Blyth Home Scents’ offers a range of products throughout its brands, which includes Florasense at mass, Carolina Home Fragrance at mid-prestige and Colonial At Home and Colonial Candle of Cape Cod at prestige. The Colonial Candle of Cape Cod brand’s latest launch is Tropical Drinks, with the corresponding Tropical Dreams for Carolina.

Candles Burning with Dimmer Flame
According to The Candle Report 2003, written by Pam Danziger, president and chief executive officer, Unity Marketing, a market research firm in Stevens, PA, “Consumer demand for candles, particularly demand among the most enthusiastic candle consumers, is showing signs of a slowdown.”

Seeking to reenergize the category, specialty candles are currently getting major attention. Upscale pieces from Candles by Glo feature flowers, grapes and other decorative items on the outside, designs that last through the burning of the candle. “The candle only burns down the center, and can be refilled with our wax beads and a wick,” reported Ken Simonsen, partner, Candles by Glo. For added effect, “we put a slight glow in the candle so that, at night, when you blow it out and turn out all the lights, the candle just sits there and glows,” added Simonsen. “It gives people a little something extra.”

In a departure for the company, For Every Body has based its new line of candles and bath and body products, Delights, on current decorating trends. “We focused on five different categories within home decorating, and matched our scents and the look of our candles to those trends,” noted Jeana Lewis, spokesperson, For Every Body. “The look of the candle and the scent actually correspond with the décor.”

The five categories include tropical, classic fruit, floral, nautical/shore and holiday. Each of the 18 candles in the line feature For Every Body’s signature toppings, such as sand and seashells for the nautical line.

ALPI International, Ltd., which produces candles for the teen and tween market, features items with chunks and designs on top, such as star shapes.

“We sell, first and foremost, from the look of the candle. Fragrance, most of the time, is secondary,” David Gaines, director of sales, ALPI International, Ltd., stated.

In addition to the candles themselves, the packaging design is also a key part of the company’s marketing success. “All of our candles have decorative labels. That’s where we make a statement as well,” he commented.

“There’s always either a wraparound label, or a heart-shaped label or a round label that goes on all of our containers, because everything we do is in a container,” Gaines stated. “We do little flower pots, glass bowls, votives, tins. The labeling needs to be colorful. The labels also need to, in some cases, have the design qualities that are going to interface with what’s on top as far as the chunks.”

Nirvana’s vase candle features the company’s soy wax formula, packaged in a hand-made, brightly colored glass container.

Containers Are Key
Jar and container-type candles top the list as the most preferred type of candle at every level, according to Unity Marketing’s Candle Report. “Nearly 80% of candle consumers purchased a jar-type candle in the past year,” noted Danziger. “What’s more,” she added, “the consumers’ preference for jar-type candles is growing. In 2000, some 68% of consumers reported making a jar candle purchase. As a result purchase incidence increased by some 11% points in only two years.”

“For our jar candles, which is the bulk of what we sell, the four-by-four label that’s on the jar is responsible for 80-90% of the success or failure of the product and what it communicates,” stressed John Lanman, vice president of marketing, Blyth Home Scents. “Therefore, the photography, the quality of the imagery that it projects, the brand name in the copy, the name of the fragrance and just the feeling that one gets when one looks at it, is critical.”

Cosmetic Packaging Group, a division of O. Berk Company, offers tins with a clear window top to show off the candle color.

Tins are also popular when it comes to candles, due in part to their portability. “You can take them with you when you travel, to fragrance a hotel room, for example,” commented Steven Nussbaum, director of marketing, O. Berk Co.

To make candle selection in tins an easier task, O. Berk Company recently introduced Clear Window Silver Tins, a line of tin containers that feature a clear window top. “It’s a better package, because consumers can now see the color of the candle inside,” remarked Nussbaum.

Jenifer Brady, vice president sales and marketing, Brad-Pak Enterprises, Inc. concurred that candles are becoming especially popular for travel. To fill this demand, the company offers a large inventory of stock candle votives.

Demand for Naturals Make Soy So Good
Pumping new life into the candle industry is the emergence of soy and other naturally based waxes.

“Soy is the first innovation in the global candle industry in the last hundred years,” said Annett Davidson, director of marketing, Hanna’s Candle Co. “We call it the new generation of candles. They’re environmentally safe, they’re a vegetable product so they’re biodegradable and they support our nation’s economy by supporting our farmers,” she continued.

Chris Balthasar, vice president, Nirvana Candle Co. sees the trend as an offshoot of the boom in the organic industry. “There’s a growing segment of the population that has come to realize that paraffin is a petroleum product and those people don’t want to burn petroleum in their houses.”

“Soy also burns slowly and evenly with a very steady flame, and it’s much cleaner burning so you get less soot,” Davidson added. “It’s also cooler burning, which means that it allows the fragrance to work quickly and last longer so you’re getting a great value for the dollar.”

Cost has been an issue for soy candles. Once more than four times the cost of paraffin, the price for natural waxes is now closer to double the price, making it a lot more accessible for the consumer. “Even with their premium price, the new natural candle is finding an eager market,” stressed Danziger in the Unity Marketing report.

“I think soy is probably the future,” remarked Bob MacLeod, president, Kiss My Face Corp. He added that soy is the key ingredient to a line of four candles from Kiss My Face Corp. The “candles with conscience“ are scented with essential oils that offer aromatherapeutic benefits, according to MacLeod.

Nirvana’s vase candle features the company’s soy wax formula, also scented with essential oils, in a hand-made, brightly colored vase. “We didn’t want to do jars, since everyone was doing them,” commented Balthasar. “Besides, once you’re finished with the candle, you tend to toss the jar,” Balthasar commented. “The vase you can keep using over and over.”

Yankee candle is launching a line of diffusers in four Housewarmer fragrances.

Diffusing the Situation
Lenhart noted that the major trend in home fragrancing over the last few years has been the electric diffuser with scented oils.

“The electric scented oil segment has been growing since it was introduced in January 2000,” agreed Therese Van Ryne, public relations manager, global public affairs, S.C. Johnson & Son, Inc.

Lenhart added that Yankee Candle is launching its own line of electric diffusers, which will hit shelves this month, in four top-selling Housewarmer fragrances. Refills are available in four additional fragrances.

“We know in our Housewarmer line that an image is very important, a strong image of the fragrance,” continued Lenhart. “So, we translated that packaging philosophy into our home fragrancing category.

“You can see, for example, on our new diffuser line, big images of MacIntosh apples all over the box. We took the consumer-recognizable graphics off of our Housewarmer line and expanded them,” she said. “We’ve done that on all of the other products as well. There’s a theme throughout.”

The At Home Collection from AromaFloria, including various forms of fragrance, is available in a popular combination scent of orange and vanilla.

Food and Floral Favorites Have Scent Appeal
While the popularity of scents tends to be cyclical, there are certain scents that maintain a constant appeal. Vanilla is the most popular scent in candles, according to Unity Marketing. The company also noted that most of the leading home fragrances are inspired by nature, such as florals or woodsy notes, or favorite foods, such as candy, fruits, cake, chocolate and coffee.

“A lot of people ask for vanilla and we get a lot of requests for green tea,” said Simonsen. “One of the new fragrances that I’m using is an opium scent, and that seems to be very popular.”

“Edibles are still extremely popular,” reported Debbie Trollope, category manager, Upper Canada Soap & Candle Makers. It plays on “the nostalgia trend, the comforts of home.”

Lenhart added, “There’s certainly been a citrus trend in home fragrance for the past couple of years.”

For fall, Laurie Penn-Moyer, marketing manager, Esscentual Brands, cited a trend towards wholesome edible-scented fragrances, “things like fruit and nut combinations, vanillas, unrefined sugars and pure grains,” she commented.

“We also hear that there is a surge in white florals,” Lenhart commented. “That’s what the fragrance houses are telling us is going to be hot.”

“Heady florals and floral blends are making a comeback,” agreed Trollope. In addition, she noted that scents such as gardenia, honeysuckle, freesia, lilac, orange blossoms and magnolia are gaining strength.

“Ozonic fragrances like linen, cotton and water fragrances are still strong, especially for the spa markets,” reported Trollope. “They are clean scents that appeal to both genders.”

Warm and romantic scents will be popular for fall, according to Penn-Moyer, who said, “fantasy-type scents reminiscent of crisp air, clear water, autumn woods and hints of sun to soothe the senses,” are expected to be in demand.

From Esscentual Brands, the Claire Burke line introduces Tranquil Woodland fragrance for Fall 2003.

Esscentual Brands new fragrance for fall in its Claire Burke line is Tranquil Woodland, which “has warm notes of teakwood, sandalwood and sage balanced with fresh peppercorn and ginger,” she observed. “It’s appealing to both men and women.” The company’s new holiday fragrance is Sugared Delight, a blend of rich vanilla, creamy custard and smooth caramel.

Also new for the holidays is Peace & Harmony, an offering of bath and body products and home fragrancing from Upper Canada Soap & Candle Makers. It includes notes of mandarin and white peach with nutmeg and cinnamon, finishing with patchouli, vanilla and musk. “The room spray is formulated with a hint of shimmer to add sparkle to the holiday season,” reported Trollope.

Aromatherapy is still a significant issue too. A direct offshoot of the spa trend, as well as the desire for natural healing, the treatment of the body with fragrance is an age-old idea.

Coty’s Healing Garden White Tea Therapy collection includes a home fragrancing candle and room spray.

The Healing Garden White Tea Theraphy, Coty’s most recent aromatherapy fragrance collection introduction, offers six bath, body and home fragrancing products, including a pillow and room spray, “that help to create a sense of sanctuary,” noted Anastasia C. Ayala, senior vice president, global fragrances, Coty Beauty North America. White tea, neroli and mimosa benefit the skin, according to Ayala, while “mandarin flowers, geranium and warm vanilla round out the products’ blissful, light scent to bring forth a feeling of comfort and serenity.”

Cucina’s fragrance products are designed to blend with the existing cooking aromas in the kitchen.

A Seasoned Approach
Fruits & Passion is taking a whole different approach to fragrancing with its Cucina line of products for the kitchen. While most home fragrances are meant to mask bad odors or create an ambiance of their own, the Cucina products are designed to blend with the existing cooking aromas in the kitchen.

In addition to products such as hand cream, hand wash, fruit and vegetable wash and a range of soaps, the line features a room spray and fragrant wands. The Coriander and Olive Tree aromatic spray is particularly suited to slow-cooked dishes and roasts, Basil and Tomato melds with grilled and fried meats, and Ginger and Sicilian Lemon goes with the aroma of fish and seafood, according to the firm.

“Our approach when creating these products was, ‘how can we accompany consumers while they are doing an activity that they like, such as cooking?’” commented Louis Giguere, director of marketing and communications, Fruits & Passion.

The packaging is all based on traditional items found in the kitchen. Cucina’s Fragrant Kitchen Spray is housed in small glass bottles that resemble those housing refined vinegars. “The kitchen spray looks like some type of seasoning,” commented Giguere. “Conceptually, it’s seasoning and, instead of masking cooking odors, we season them.” The bottles contain berries, bark and decorative herbs to blend with the kitchen décor.

The line’s Fragrant Wands, a bamboo fragrancing product created to look like spaghetti, is packaged in a spaghetti-shaped box. A glass diffuser jar, also part of the collection, displays the wands, giving them the look of pasta in a glass container. For fragrance, the user simply pops the cork lid.

Scenterprises is offering updated incense products packaged conveniently for gift-giving.

Potpourri Possibilities
Sue Phillips, president, Scenterprises Ltd., noted that there are many innovative forms of home fragrance that will emerge in the not-too-distant future.

“Scented and textured potpourri, with chunks of sea glass, beads and pumice stones are part of the mix for the future,” she commented. “These have become very popular, because they can be color-coordinated to match any living room, bedroom or guest room.”

“We are seeing a resurgence over the past year in potpourri, especially larger pieces that have more home decor appeal,” agreed Trollope.

Hanna’s Candle Co. offers Soy Holiday in popular containers.

The ‘At Home’ Collection from AromaFloria—which includes natural soy wax aroma candles, natural home mists, bath and body oils and sachets—also features aroma beads and petal potpourri.

An unusual take on potpourri, the potpourri petals are made of a recycled textile. “It always looks the same,” commented Sharon Christie, president, CEO and co-founder, AromaFloria. “The petals don’t lose their color, they’re easy to refragrance through the use of the home mist or an oil, and they always look pretty.” This also has the bonus of being a non-allergic medium, sometimes a concern with potpourri, she added.

Christie also noted the growing market for aroma beads. “We’ve been doing aroma beads for a number of years, and each year it increases,” she observed. “It really is a unique product in terms of its delivery—different from a potpourri or botanicals. They’re not as big and chunky as potpourri, they hold their fragrance a lot longer and they are truer to a fragrance form—plus we make them so visually impacting and touchable.”

AromaFloria’s newest offering in aroma beads, Tropical Destinations, is all tropical notes with heady fragrances, in colors that reflect the colors of the tropics. The beads have small items mixed in, such as seashells, to make them more decorative, according to Christie.

Fragrance Alternatives
“A lovely new item that has emerged is the decorative and scented wand product,” offered Phillips. “They are dipped into a jar of scented oil, and the wands or ‘fronds’ are splayed out. They absorb the oil and diffuse into the air and make a lovely scented sculpture on any coffee table or bedside table.”

Scented drawer tiles, designed for use in drawers or closets, can also be placed in a little bowl on a table as a decorative scented room fragrancer, she commented.

Incense is also displaying a huge new product opportunity, Phillips stated. “Many upscale companies are now marketing incense.“The old days of ‘Hippie’ incense are over,” she continued. “The fragrance technology for incense has been refined, and the incense sticks are a lot nicer, more contemporary and have a better fragrance rendition.”

Due to their decorative and unique nature, these newer forms of home fragrancing require packaging that meets a variety of special needs. The level of success of these fragrance products will help drive the packaging market in this segment, and the packaging, in turn, will buoy the success of these future product leaders.