The U.S. Market for Home Fragrance Products, 4th Edition

SUMMARY

Innovative new scents and delivery systems, products that resemble decorativeaccessories, the lure of aromatherapy in an increasingly stressful world: thesefactors have spurred the U.S. home fragrance market. Even as growth in theonce-explosive candle segment slows, new offerings in air fresheners andenvironmental fragrances, such as products designed to mask pet odors, arepicking up the slack. This new Packaged Facts report, the 4th edition, providesa comprehensive analysis of the U.S. market for home fragrances, including theconsumer environment; "mass" and "class" channels and thecrossover trends that enhance sales; and retail figures for both the airfreshener and environmental fragrance categories. Also featured: IRI share data;Simmons demographic data; and competitive profiles of major players in thefield.

Report Methodology

The information in The U.S. Market for Home Fragrance Products is based onboth primary and secondary research. Primary research involved on-siteexamination of the retail milieu, interviews with marketing, public relationsand industry analysts within the home care market and consultants to theindustry. Secondary research entailed data-gathering from relevant trade,business, and government sources, including company literature. Packaged Factshas derived mass merchandiser sales figures from Information Resources, Inc.(IRI) InfoScan sales-tracking data. Figures provided on national consumeradvertising expenditures are based primarily on data (copyright 2003) compiledby CMR/TNS Media Intelligence U.S., the leading provider of strategicadvertising and marketing communications intelligence. New product informationis gathered via literature research, personal interviews and data compiled byProductScan, a service of Marketing Intelligence Service Ltd.

The report alsodocuments market size and composition, marketing and retail trends, and the roleof the Internet, and up-to-date profiles of key consumer demographics based onSimmons Market Research Bureau data for Fall 2003.

What You' ll Get in this Report

The U.S. Market for Home Fragrance Products makes important predictions andrecommendations regarding the future of this market, and pinpoints ways currentand prospective marketers can capitalize on current trends and spearhead newones. No other market research report provides both the comprehensive analysisand extensive data that The U.S. Market for Home Fragrance Products offers. Thereport addresses the following segments:

• The Market (including market size and composition, and projected marketgrowth)
• The Marketers (including discussions of specific marketer brand and marketshares)
• Competitive Profiles (of the mainstream personal care marketers,specialists and up-and-coming niche players, and analyses of the productsthey market)
• Retail Strategies (including mass marketers, supermarkets stores and drugstores)
• The Consumer (who' s buying what, and where)
• The Products
• Trends and Opportunities

Plus, you' ll benefit from extensive data, presented in easy-to-read andpractical charts, tables and graphs.

How You Will Benefit from this Report

If your company is already competing in the home fragrance market, or isconsidering making the leap, you will find this report invaluable, as itprovides a comprehensive package of information and insight not offered in anyother single source. You will gain a thorough understanding of the currentmarket for home fragrance products, as well as projected sales and trendsthrough 2008. Contributing to that understanding will be a complete analysis ofsales data from IRI and other published and trade sources, a detailed discussionof the consumer for home fragrance products based on Simmons data.

This report will help:

• Marketing Managers identify market opportunities and develop targetedpromotion plans for home fragrance products
• Research and development professionals stay on top of competitorinitiatives and explore demand for products in the home care arena.
• Advertising agencies working with clients in the home care industryunderstand the product buyer to develop messages and images that compelconsumers to purchase these products.
• Business development executives understand the dynamics of the market andidentify possible partnerships.
• Information and research center librarians provide market researchers,brand and product managers and other colleagues with the vital informationthey need to do their jobs more effectively.

TABLE OF CONTENTS

Chapter 1: Executive Summary

• Scope and Methodology
• Report Methodology
• The Products
  • Environmental Fragrances
  • Air Fresheners
  
  
• The Market
  • $2.9 Billion Market
  • Slow Candle Sales, Strong Sales of Home And Auto Air Fresheners
  
  
• Table 1-1: U.S. Retail Sales of Home Fragrance Products, 1999-2003
• Table 1-2: Year-to-Year Percentage Change in Retail Sales of HomeFragrance Products, 2000-2003
• Factors Affecting Market Growth
• Seasonal Now Year-Round
• Demographic Targeting
• Updating Product Presentation
• Packaging to Encourage Repeat Purchases
• Different Scents for Different Rooms
• The Marketers
  • Automobile Air Fresheners
  • Home Air Fresheners
  • Potpourri/Sachets
  • Candles
  
  
• Competitive Situation
  • Marketing Trends
  • Product Trends
  • Packaging Trends
  
  
• The Consumer
  • Use of Air Fresheners
  • A Downscale Profile
  • Spray-type Air Fresheners
  
  
• Table 1-3: Demographic Characteristics of Air Freshener Consumers, 2003
  • Consumer Use: Minor Differences Across Product Types
  • Glade: Preferred Brand

Chapter 2: The Products

• Scope of the Report
• Products Not Covered
• Past Innovations In Home Fragrances


• Product Categories, Forms, Uses
  
  • Environmental Fragrances
  • Potpourri
  • Scented Oils
  • Scented Candles
  • Sachets
  • Incense
  • Other Product Segments
  
  
• Air Fresheners
  • Home Air Fresheners
  • Automobile Air Fresheners
  
  
• Ingredients
  • Fragrance Formulae
  • Aromatic Gums and Resins
  • Dried Botanicals
  
  
• Table 2-1: Assorted Dried Botanical Ingredients Found in Potpourri
• Home Fragrance Products And Aromatherapy
• Table 2-2: Chemicals Used in Home Fragrances and Their Effects on Health

• Environmental and Government Regulations
  
  • EPA and Chemicals Used In Home Fragrances
  • Fragrance Industry and The FDA
  • Aromatherapy Captures FDA' s Attention
  • Pollutants From Candles And Incense
  • The Problem of Lead Wicks
  • Incense and Air Pollution

Chapter 3: The Market

• Methodology
• Retail Sales: Difficult To Quantify


• Market Size and Growth
  
  • Table 3-1: U.S. Sales of Home Fragrance Products, 1999-2003
  • Candle Sales: Down From Previous Years
  • Air Fresheners Show Promising Growth
  • Table 3-2 U.S. Retail Sales of Home Fragrance Products, 1999-2003
  • Market Composition
  • Figure 3-1: U.S. Retail Shares of Home Fragrance Products by ProductType, 2003
  
  
• Factors Affecting Market Growth
  
  • Increasing Number Of U.S. Households
  • Figure 3-2: Number of U.S. Households, 1995-2010
  • Spending More Time At Home
  • Product Innovations Generate Excitement
  • Changing Marketing Strategies
  • Layering Fragrances
  • Popular Gift Items
  • Specific Products For Specific Uses
  
  
• Projected Market Growth
  
  • Figure 3-3: Projected U.S. Sales of Home Fragrance Products, 2003-2008
  
  
• The Marketers
  
  • Table 3-3: Selected Marketers of Environmental Fragrances
  • Table 3-4 Selected Marketers of Air Fresheners
  
  
• Home Air Fresheners: Marketers And Brand Shares
  
  • SC Johnson & Son Inc.: Market Leader
  • Glade: The Leading Brand
  • Reckitt Benckiser
  • Table 3-5: Marketers and Brand Shares of Home Air Fresheners,2002-2003
  • Table 3-6: Comparison: Retail Market Share and Rankings of Home AirFresheners Marketers 1999 and 2003
  • Lysol Neutra Air Surges Ahead
  • Table 3-7: Brand Performance of Home Air Fresheners, 2002-2003
  
  
• Automobile Air Fresheners: Marketers and Brand Shares
  
  • The Big Little Tree
  • SC Johnson Gaining on the Competition
  • Table 3-8: Marketers and Brand Shares of Automobile Air Fresheners,2002-2003
  • Figure 3-1: Marketers and Brand Shares of Automobile Air Fresheners,2003
  • Table 3-9: Comparison: Retail Market Share and Ranking of Marketers ofAutomobile Air Fresheners 1999 and 2003
  • Glade Leads The Charge
  • Table 3-10: Brand Performance of Automobile Air Fresheners, 2002-2003
  
  
• Potpourri/Sachet Products: Marketers and Brand Shares
  
  Florasense: The Leading Brand
  • Increased Competition in Potpourri
  • Table 3-11: Marketers and Brand Shares of Potpourri/Sachets, 2002-2003
  • Table 3-12: Comparison: Retail Market Share and Rankings ofPotpourri/Sachets Marketers 1999 and 2003
  • Positive Growth Despite Sluggishness
  • Table 3-13: Performance of Potpourri/Sachets Brands, 2003
  
  
• Candles: Marketers and Brand Shares
  
  • SC Johnson Leads Retail Sales
  • Glade Candle Scents: Major Brand
  • SC Johnson Regains Top Spot
  • Table 3-14: Marketers and Brand Shares of Candles, 2002-2003
  • Table 3-15: Comparison: Retail Market Share and Ranking of Marketersof Candles 1999 and 2003
  • Glade Registers Highest Sales Increase
  • Table 3-16: Performance of Brands of Candles, 2002-2003

Chapter 4: Competitive Situation

• Private Label Candles: A Force To Reckon With
• Mergers and Acquisitions Bring In Big Players
• Blyth Inc. Acquires Walter Drake & Miles
• Shell Oil Buys Medo Air Freshener
• Henkel Takes Over Dial Corp

• Competitive Profiles
  
  • Yankee Candle Company
    • Company Profile
    • History 69
    • Ownership Change
    • Main Plank For Growth
    • Sales Growth of 14.3% In 2003
    • Product Line
    
    
  • Table 4-1: Yankee Candle Company Candle Types
    • New Products
    
    
  • Table 4-2: Yankee Candle Company Recent Product Introductions
    • Multi-pronged Distribution Strategy
    • Retail Operations
    • Wholesale Operation
    • Target Audience
    • Sleek YC Targets Young Urban Consumer
    
    
  • SC Johnson & Son Inc.
    • Company Overview
    • Glade Product Line
    • Competition For SC Johnson
    • New Products Doing Well
    
    
  • Blyth Inc.
    • Company Overview
    • Blyth' s Mass-market And Prestige Market Brands
    • New Products
    
    
  • Table 4-3: Blyth Recent Product Introductions
    • 'Inorganic'  Growth Pattern
    • Major Distribution Channels
    
    
  • Intimate Brands Inc.
    • Company Overview
    • Business Segments
    • Retail Operations
    • Building "The World' s Best Candle"
    
    
  • Dial Corp.
    • Company Overview
    • Market Share
    
    
  • Table 4-4: Market Shares of Types of Dial Products, 2001-2003
    • Product Line
    • Future of Renuzit
    • Distribution Network
    
    Reckitt Benckiser Company Overview Home Fragrance Product Line AirwickNite Light Story
  • American Greetings Corporation
    • Company Overview
    • Business Segments
    • Candles Shine Through
    • Mass-market: Prime Distribution Channel
    
    
  • Lancaster Colony Corporation
    • Company Overview
    • Business Segments
    • Declining Candle Sales
    
    
  • Shell Oil Products U.S.
    • Company Overview
    • Medo: Market Leader Despite Declining Sales
    
    
  • Product Trends
    
    • Food, Fruit Fragrances Gain In Popularity
    • Table 4-5: Top Fragrances of Home Fragrance Products, 2003- 2004
    • Natural Products Draw Consumers
    • Aromatherapy Products
    • New Trend In Automobile Air Fresheners: Fresh Flavors
    • Products With A Contemporary Look
    • Decorative and Functional
    • Seasonal Products
    • Table 4-6: Selected Auto Air Freshener Product Introductions,2003-2004
    • Table 4-7 Selected Home Air Freshener Introductions, 2003-2004
    • Table 4-8 Selected New Candle Introductions, 2003-2004
    • Table 4-9 Selected New Essential Oil Introductions, 2003-2004
    • Table 4-10 Selected New Potpourri/Sachet Introductions, 2003-2004
    • Table 4-11 Selected New Incense/Pebbles Introductions, 2003-2004
    
    
  • Packaging Trends
    
    • Positioning Through Innovative Packaging
    • Labels Help Educate Consumers
    • Allowing Consumers To Sample Fragrances

Chapter 5: Advertising and Promotion

• Consumer Advertising Expenditures
• Note on Sources
• Spending On Glade Almost 63% of Total Industry Ad Dollars
• Airwick Line Backed By $30 Million In Ad Spend
• Yankee Candle' s Spending Low At $4.26 Million
• Renuzit Spending Miniscule
• Consumer Advertising Positioning
  
  • Home Fragrances Serve Multiple Functions
  • Popular Gift Choice
  • Awareness of Natural Ingredients'  Benefits
  • Products For Special Occasions, Uses
  
  
• Examples of Consumer Advertising and Promotions
  
  • SC Johnson & Son Inc.' s 'Family'  Campaign
  • Print Ads From Yankee Candles
  • Table 5-1: Selected Positioning Statements in New ProductAdvertising
  • Targeting Mass-market With Discount Coupons
  • Coupon Promotions And FSIs
  • Promotions For Gift Packages
  • Table 5-2: Consumer Promotions for Selected New ProductIntroductions
  • Using the Web To Advertise and Discount

Chapter 6: Retail and Distribution

• Multiple Distribution Methodologies
• Wholesale
• Specialty Stores
• Mass-Market
• Direct Sales
• Catalog and Internet Sales
• Retail Trends
  
  • Retail Chains Increase Candle Assortments
  • Candles Go Mass-Market
  • Home Fragrance Marketers Bundling Product Offerings
  • Home Decor Companies Have an Edge
  • Discount Stores Favored For Gift Purchases
  • Gift Stores Give Thumbs-up To Candles, Accessories
  • Breakdown of Marketer Sales By Channels
  • Table 6-1: Yankee Candle Co.' s Sales through Various Channels, 2003
  • Table 6-2: Blyth Inc.' s Sales through Various Channels, 2003
  • Car Air Freshener Displays Capture Impulse Buyers
  • Focus On Leading Air Freshener Brands
  • Air Fresheners Displayed With Household Cleaners
  • Mass-Market Displays Reinforce Premium Image
  • Environmental Fragrances: Displayed as Differentiators

Chapter 7: The Consumer

• Note On Simmons Survey Data
• Consumers'  Use of Air Fresheners
• Figure 7-1: Frequency of Use of Air Fresheners, 2003
• Table 7-1: Demographic Characteristics Favoring Use of Air Fresheners,2003
• Table 7-2: Use of Air Fresheners by Type, 2003
• Table 7-3: Demographic Profile of Air Freshener Users by Type ofFreshener, 2003
• Table 7-4: Major Indices of Air Freshener Use by Product Type, 2003
• Spray-type Air Fresheners
• Plug-in/Electric-type Air Fresheners
• Candles A Profile from the National Candle Association
• Figure 7-2: Use of Different Types of Home Air Fresheners by Age
• Figure 7-3: Use of Different Types of Home Air Fresheners by Ethnic Group
• Figure 7-4: Use of Different Types of Home Air Fresheners by Region
• Brand Preference
  
  • Most Widely Used Brand: Glade
  • Table 7-5 Consumer Use of Air Fresheners by Brand
  • Table 7-6 Demographic Profile of Users of Air Fresheners by Brand
  • Consumer Profile: Glade
  • Table 7-7: Demographic Characteristics Favoring Use of Glade AirFresheners
  • Consumer Profile: Touch of Scent
  • Table 7-8: Demographic Characteristics Favoring Use of Touch of Scent
  • Consumer Profile: Wizard
  • Table 7-9: Demographic Characteristics Favoring Use of Wizard AirFresheners
  • Consumer Profile: Renuzit
  • Table 7-10: Demographic Characteristics Favoring Use of Renuzit
  • Consumer Profile: Airwick
  • Table 7-11: Demographic Characteristics Favoring Use of Airwick AirFresheners

Appendix: Addresses of Selected Marketers