Organized Home Fragrance Market is Pegged at INR 750 Crores: The India Watch Study

Read the analysis and get to know about the nascent but emerging home fragrance sector in India.  In the end of the analysis we have also discussed how to conduct feasibility study for home fragrance business ideas. 

Fragrances have been integral to Indian culture, since ages. From royal houses to monasteries, everywhere it has found application. The country has been origin for a wide range of aromas including but not limited to Oudh, Rose, Jasmine, Sandalwood, and much more. 

In the post-independent India as well, home fragrances product continued finding place in households. However, initially it was largely focused around few specific products such as Agarbattis, room fresheners, etc. Other relatively expensive products such as diffusers, burners, Pot Pourris, were mostly limited to affluent households. They were also not widely available across regular retail channels and mostly found in duty free stores or lifestyle shops. 

However, things have largely changed over the past decade. As average per capita income has risen sharply in urban India, there is a growing demand for aspirational & daily wellness. Households are now spending readily to live a more enriched lifestyle. While social status is essential, equally appetizing are wellbeing & overall comfort. 

The demand for products such as reed diffusers, oil burners, Pot Pourris, scented tea lights, candles, wax tablets, etc. Once believe to be a non-essential luxury, they are now becoming extension of overall lifestyle. After décor and furnishing, aromas are becoming the third most essential part of the home ambiance, making it an integral part of modern households. 

Similarly, in numerous other commercial spaces such as spas, high streets, HORECA, galleries, etc. such products are becoming widely popular. 

The Growth Drivers of India’s Home Fragrance Industry 

Mentioned below are major growth drivers of the home aroma industry in India:

    Key macroeconomic fundamentals such as rise in disposable income, shift in customer behaviour, and growing demand for leading a trendier & more comfortable lifestyle. 

    Just like perfumes and deodorants, home fragrances are nowadays also believed to be a part of self-expression and personal style statement.  

    Though there is dearth of clinical research, anecdotal studies have shown how numerous aromas such as lavender, lemon grass, Jasmine etc. can help in mood enhancement, lowering of stress, and can even aid in building better focus. 

    The definition of home fragrances is also changing. They are no more just perceived as a lifestyle product. Rather home aromas are also associated with overall comfort, and family wellbeing. 

    The rise of e-commerce and digital media has now enabled home fragrances manufacturers to reach newer markets and consumer categories ( and thus also  brings the need for feasibility studies on e-commerce industry). Thanks to digital retail, home fragrances are widely available in non-metros as well. 

    The continuous growth in horizontals, verticals, and D2C brands will dovetail the segment to grow and expand fast. Meanwhile brands will adopt an omni channel strategy comprising offline, online, B2B etc. to quickly expand their footprint. 

A 750 Cr Organized Market: As per The India Watch Study 

The overall size of the home fragrance market is around INR 2550 crores in India, as per The India Watch study. (This does not include other related products such as incense sticks, air fresheners, car fresheners, etc. These products will be covered in a separate study.)

It is still small compared to the global market (~ 3% of the global market size). Nevertheless, the market is growing at a CAGR of around 15.5% backed by growing demand across households and B2B segments. The market share of organized players is close to INR 750 crores- around ~ 29% of the total market size. The E-commerce industry is growing and thus, feasibility study for e-commerce start-ups in India is also coming into limelight. 

While large portion of the home fragrance market in India is unorganized, recent years have also seen emergence of numerous organized players such as IKTA Aromatics, Nishant Aromas, Rosemoore, Phool, Primacy Industries, etc. Most of these players are mid-sized but are expanding at a commendable pace. In the times to come, more enterprises and start-ups are expected to enter the lucrative segment. 

How The India Watch can Help? 

The India Watch is a premier market research and business consulting advisory. We work with wide range of businesses (of various sizes) and investment houses to help them with customized research solutions. 

•    We can assist start-ups entering the home fragrance, décor, and other lifestyle segments with numerous services such as feasibility studies, viability studies, business plans, corporate presentations, etc. 

•    We have dedicated vertical for market research for retail businesses in India. We can assist in designing and conducting Market surveys with key stakeholders such as consumers, retailers, distributors, B2B clientele base, etc. We have presence all over India and specialize in a wide range of surveys such as qualitative studies, quantitative studies, B2B research, probe style interviews, product testing, etc. 

•    Tailor made insights on market size, potential evaluation, market scanning, industry trends, distribution structures, competitive information, retail strategy, policy insights, growth driver evaluations, etc. 

•    Financial analysis and projections for new business ventures. Similarly, we can also assist with scenario planning, sensitivity analysis, break even analysis, IPO strategy, etc. 

•    Thematic reports, white papers, pitch decks, capability decks, etc. 

•    For further assistance on market research on home décor and lifestyle industry, feel free to connect with us at info@theindiawatch.com