Home and body fragrances came together to generate upwards of $20 billion in retail sales last year, according to Kline’s recent Cosmetics & Toiletries USA and Home Fragrances USA reports. While personal fragrance remained vibrant with sales increasing by almost 8% in 2022, home fragrances sales fell for the first time in the last decade. According to Dana Kreutzer, Project Manager in Kline’s Beauty and Wellbeing sector, “Consumers are pulling back on home fragrance purchases due to less time spent at home and a return to social occasions.”

Despite struggles for the overall home fragrances market, the demand for premium brands was the underlying trend of growth in both home and body fragrances. In the home fragrance segment, premium brands were largely resistant to economic fears, as nearly all players registered growth and softened the total market decline. Furthermore, 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.

Other key trends driving growth across home and body fragrances include:

  • Wellness-oriented launches are popular as health and wellness remains top priority for consumers.
  • Celebrity launches and partnerships are generating a high degree of excitement.
  • Brands are leveraging signature scents when extending into new categories, creating cohesiveness across product portfolios and capitalizing on top-selling SKUs.
  • Successful sampling initiatives enhance consumer trust and create moments of delight for shoppers.

Despite the return of brick and mortar, e-commerce remained a preferred outlet for consumers. While a decade ago online sales were 12% of total fragrance sales for home and body, today, they capture one-third of fragrance purchases.

What other changes are reshaping home and body fragrances? What does the future hold, and what trends are likely to shape it? How are leading and emerging brands like Nest, Glossier, Boy Smells, Christian Dior, and Yankee Candle picking up on key trends in home and body scents? Find out from Kline’s Fragrance Fusion: Key Trends in Home and Body Care report, featuring select excerpts from Kline’s in-depth Cosmetics & Toiletries USA and Home Fragrances USA market research analysis, published in June 2023.