In Kline's July 2023 "Fragrance Fusion: Key Trends in Body and Home Care" report, the company projected home and body fragrance came together to generate upwards of $20 billion in retail sales last year.
Throughout the report, Kline outlined key factors and trends driving innovation in the spaces. An interesting point is the shift in consumers interacting with ambient scent for their homes due to less time spent at home and return to social occasions.
According to Kline, demand for premium brands is the underlying trend of growth in the fragrances industry:
- Premium Home Fragrance brands were largely resistant to economic fears, as nearly all premium players registered growth and softened the total market decline. The consumer base in premium channels was less price-conscious and still willing to pay for higher priced home fragrance options despite the inflationary cycle.
- The Body Fragrances market was characterized by shoppers investing in luxurious scents, including reboots of classics which often meant an increased price point, cleaner formulas, celebrity-backed brands, and functional scents.
E-commerce has transformed how consumers shop. A decade ago, online sales were 12% of total fragrance sales (home and body). Today, they capture one-third of fragrance purchases.AdobeStock
5 key drivers in home and body fragrances according to Kline:
- Ingredient stories will become more critical as shoppers become increasingly mindful of conscious beauty and brand transparency.
- Video animation and the addition of sensory to social media content will help evoke emotion and bring the fragrance experience to online shoppers.
- Marketers will lean into functional fragrances through mood and energy-boosting scents.
- Gourmand fragrances, a well-loved scent category, are expected to become more sophisticated as brands look to tap into the psychological connection between food and comfort.
- Brands will capitalize on the travel boom as consumers spend more time out of their homes in 2023 and invest in travel-friendly products.
