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Driven by consumers desire for their homes to smell good,
approximately 80% of all adult Americans purchased some type of air
care product in the past year, including candles and candle
accessories, sprays, plug-ins, room fresheners,
potpourri, air fresheners, air purifiers and more.
A tremendous shift has occurred among home fragrance consumers,
as people realized that having a pleasant smelling home is not just
for holidays or special occasions anymore. People expect their
homes to smell great year around, thus
buying and using home fragrance products has become an everyday
necessity for more Americans.
Most home fragrance products are targeted towards women, and
women are reporting higher rates of usage when compared to their
male counterparts, according to a 2006 study conducted by Mintel.
Men do, however, report a
much higher rate of using air sanitizers than do women,
suggesting that hygienic reasons for using such products are more
appealing to men than women.
Mintel also analyzed survey responses by different demographic
groups in order to gain more insight into higher-than-average users
of air freshener products. The highest reported usage of air
fresheners is from those who are
both busy and likely on a budget: working women, single moms and
teen-dominated families. They may have less time to clean but
nevertheless want a fresh smelling home.
Offering a wide variety of fragrances is very important to
fragrance centric shoppers, according to Rick Ruffolo, senior vice
president of brand, marketing and innovation at Yankee Candle.
Providing consumers with fragrances that follow the hottest
fragrance trends is important, however Ruffolo feels it is critical
to provide candle consumers with complementary home fragrance
products, such as electric and reed diffusers for example, so they
can layer their
favorite fragrances throughout the home.
There is also a seasonality when it comes to a consumers
fragrance preference. Popular fragrances in the fall are not the
top fragrances during spring or summer, as many consumers look to
reflect the season and surround themselves
with whats going on in nature during the particular time of
year.
Marketing Data:What Consumers Want
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Marketing Data:Air Care Market Overview
The overall global retail sales of all air care products, which
includes candles, aerosols, electric diffusers, gels, solids,
sachets, potpourri, reeds and automobile air fresheners, was valued
at more than $6 billion in 2006 and is forecast to
reach $7.3 billion by 2010. While candles remain the favorite
choice for fragrancing the home, mass candle sales have recently
fallen partly due to the development of new innovative air
freshener products that feature great home fragrances
coupled with decorative design and ambiance.
According to Information Resources Inc., The U.S. mass air
freshener market was worth $979.1 million in 2006, which reflects a
5.7% increase vs. 2005. The market is divided into three segments,
home air fresheners, car air fresheners and
potpourri/sachets. The largest segment, home air fresheners,
accounts for over 91% of total air freshener sales, with $889.2
million in sales. The car air freshener segment makes up 6% of the
market with a $61.2 million, while
potpourri/sachets have a 3% share with $28.6 million. All three
segments have experienced significant growth over the past five
years largely due to the number of innovative new product
launches.
Estimated at $2.2 billion in 2006, U.S. candle sales have yet to
return to their 2000 peak of $2.3 billion. Mass candle sales
remained relatively flat at $714.6 million, although the category
did post a 2.7% increase vs. last year. Although sales have been
stagnant over the past few years, the category is still growing.
According to the National Candle Asso-
ciation, the category is expected to continue to grow a steady
2% to 3% annually over the next few years. The National Candle
Association also suggests that the increase of candle as gift items
has resulted in a growing willingness for con-
sumers to pay more for candles they would give as a gift. This
emphasis on giftable candles has pushed consumers into specialty
stores and home dcor stores in search of more upscale and unique
offerings.
Global Cosmetic Industry, 12/1/06
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Market Trends:Lifestyle
Green lifestyle and design are an important trend in all markets
as more and more people become aware of environmental concerns.
Some designers are taking a fresh approach towards creating
sustainable products by using ordinary materials in unusual ways.
As green design grows, it will eventually become not just a niche
market, but a
lifestyle where everyday products blend the eco-conscious with
the style-conscious, shedding the fanatic stereotypes typically
associated with going green.
Color association, February 2007, Happi, January 2007, Happi
November 2006
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Fragrance Trends:
Fragrances reflect individual personalities within the home and
choosing the right fragrance has become increasingly important to
home fragrance consumers. Once based strictly on fragrance trends
in fine fragrance and personal care,
todays home fragrance trends flower wider consumer trends like
food, drinks, travel and fashion.
Chicago Sun Times, January 10, 2007, IRI, Candle Report, 52
Weeks Ending 12/31/06, Gifts & Accessories, 2/1/07
Citrus notes such as lemon, orange, lime a n d grapefruit, which
were t r a d i -tionally perceived as functional, are now blending
with sophisticated floral, fruity and vanilla notes to create a
fresh, clean sensation. These new citrus fragrances create a
natural feel and are designed to induce a mouthwatering
sensation.
Citrus:
Fruity fragrances take on a new direction. What used to be sweet
and sticky, is now crisp, refreshing and healthy. There has been an
emergence of a new antioxidant superfruits to hit the home
fragrance market. Exotic fragrances such as mango-steen, guava,
lychee and pomelo are creat-ing a stir in the marketplace and many
of the major home fragrance companies are featuring these scents in
their new introductions.
Fruit:
Scents inspired by nature will continue to be a prominent trend
in air care as the social trend towards a healthy, active lifestyle
continues. Nature inspired scents such as woods and spices, as well
as fresh fruits, herbs and botanicals, will continue to command
attention because they connect the consumer with nature.
Derivedfrom nature:
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Fragrance Trends:(cont.)
Another hot trend is featuring fragrances from exotic, far away
places from around the world. Fragrances are taking consumers to
places that theyve never been before because, even if they cannot
physically visit a destination, they can travel there via
olfaction. Home fragrances are now transporting consum-ers to
Balinese Jungles, African Rain Forests and to the shores of Bora
Bora. Fantasy fragrances such as rainforest, outback, tropical
paradise and mountain stream have become a growing segment of the
home fragrance palette and incorporate all of active families in
the theme.
Destination:
Gourmand scents continue to attract consumer attention, largely
due to the fact that they tap into two senses, smell and taste. The
Fragrance Foundation recently hosted Temptations and Libations
during Fine Fragrance Week in New York City and the showcase shed
light on how smells and tastes draw from one another and how
closely the palettes are related. Gourmand fragrances continue to
be top sellers in the candle market and have grown substantially in
the air freshener segment as well. Vanilla and vanilla based
fragrances continue to be top sellers. Other favorites in this
category include cinnamon, coffee, mocha, gingerbread, pumpkin,
apple pie, brown sugar, and hazelnut.
Edible:
Fresh & Clean: One of the hottest and surprisingly hippest
themes in home fragrances is the nauti-cal & coastal trend.
What began with the smell of fresh ocean breezes, later branched
out to include almost every aspect of life by sea. From surf &
sand, to coral and shells, nautical and coastal scents are making a
big splash in the home fragrance market. Fresh & clean scents
such as fresh linen and cool breeze will also continue to be an
important category in the air care market.
Nautical& Coastal:
Chicago Sun Times, January 10, 2007, IRI, Candle Report, 52
Weeks Ending 12/31/06, Gifts & Accessories, 2/1/07
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Candles are not heavily advertised or promoted in the United
States. Candle purchases are usually made on impulse. Passionate
candle consumers tend to have favorite brands that come from
repeated positive experiences. While true
candle lovers may visit large candle retailers such as Yankee
Candle and White Barn, most candle consumers are spontaneous
purchasers and are unlikely to comparison shop for candles.
Brand awareness in the candle market may be a result of positive
experiences with the same brand in other product forms, such as
Glade air fresheners or Bath & Body Works personal care
products. Availability of candles, great location
placement and variety are the most significant factors
influencing candle sales.
Celebrity endorsement has been a major trend over the past few
years and is beginning to drive sales for candles. Both designers
and celebrities with product lines in the fashion and fragrance
worlds have turned their attention to the candle market. Kathy
Ireland, who launched her own candle brand in April 2005, suggests
that Candles are the
jewelry in the home. They bring life to a room. Lending her name
to Hannas Candle brand, the launch of Irelands line of candles
included over 300 soy and wax candles in 13 distinct collections.
Kathys brand targets the mass consumer
with upscale aspirations.
Cause marketing has also become a mayor feature of candle
company advertising and promotion. Particularly among dcor and
prestige brands, such as Natures Finest, whose sponsorship of the
Susan Komen Breast Cancer Foundation
has become a very common place practice. Yankee Candle was one
of the sponsors of the American Heart Associations womens heart
health awareness initiative, Go Red for Women. Similarly, the
Slatkin company has
released a line of candles and potpourri rocks called Elton
Rocks, using the Elton John Fragrance Collection, whose proceeds
benefit the Elton John AIDS Foundation. While this type of
marketing does not necessarily act as a direct sales
enticement, it may help sway a swing voting consumers to
purchase or remain loyal to a particular brand.
Aside from the most enthusiastic candle users, candle purchases
tend to be made most often during particular seasons and
demonstrate far stronger sales during the Fall/Christmas holiday
seasons. Well aware of this trend, candle
manufacturers have brought a wealth of holiday themed candle
products to the market. During the holiday season, candles are used
for spiritual and decorative purposes, and have become very popular
gift items as well. This has
helped grow strong sales during the fourth quarter.
Mintel Candle Report, February 2006, MMR, February 20, 2006
Candle Trends:
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