The Air Care market
The U.S. Air Care market is experiencing a paradigm shift,
seeing yet another positive year as consumers turn to Air
Care products for reasons beyond functionality. Reliance
on home and vehicle air fresheners for odor control and
removal, coupled with usage of candles for experiential needs, has
sustained the market and kept growth in check. Mintel research
shows there are pockets of opportunity to stimulate engagement
and growth, however consumer packaged goods (CPG) players
will need to be aware of threats from within the category, as well
as hidden ones lurking outside of the already crowded Air Care
space.
Air Care market by the numbers
The U.S. Air Care market has stagnated in recent years, posting
gains of 7% from 2013–2018 to reach
$6.3 billion, according to Information
Resources Inc. (IRI). Struggles reflect
the highly saturated and volatile nature
of the category, as well as a lack of new
product innovation. Still, Air Care
benefits from its nearly staple status in
U.S. households, mirrored in all three
segments (home air fresheners, candles
and vehicle air fresheners), and experienced
a lift from 2016 to 2018.
According to IRI InfoScan, all U.S.
retail sales of Home Air Fresheners
(including aerosol products) totaled approximately
$2.396 billion in 2018.
Consumers are looking for products
and fragrances that provide more
than functional benefits, with concerns
Candles, which accounted for the
majority of Air Care sales and market
share, experienced the weakest gains,
increasing less than 4% from 2016–
2018.
Vehicle air fresheners experienced
the strongest year-over-year, albeit more
moderate, growth of nearly 7% during the same
review period. Recent gains (in multi-outlet channels)
can in part be attributed to the success of
private label vehicle air fresheners, as well as U.S.
consumers spending more time in transit (prior
to COVID-19 pandemic lockdowns).
Mintel predicts the market will remain
fairly consistent through 2023, with sales
estimated to reach $7.3 billion and a CAGR
of 15%.
30 Spray December 2020
Format fatigue, ingredient
concerns shape usage habits
The majority of U.S. consumers
are using between
1–4 Air Care products,
yet there has been a slight
shift in product usage and
a decline in those using
three or more products
from 2016–2018. Long-established
formats, such as
air fresheners and scented
candles, remain the most
popular. However, trended
Rebecca Cullen
Senior Household
Care Analyst, Mintel
data reveals a slow decline in usage
of these formats. The challenge for air
fresheners, in particular, lies beyond
merely ingredient concerns. Fragrance
substitution is encroaching on the category
as some consumers are turning
to other products—such as household
cleaners—for their fragrance needs.
Conversely, essential oils and wax
melts both saw an uptick in usage during
the same period, further underpinning
the impact of format fatigue and
growing interest in newer formats with
heightened visibility and availability.
Some CPGs with market-leading brands have taken note,
expanding product portfolios into newer formats and incorporating
essential oils into formulations. This will continue to evolve
as consumers seek Air Care products associated as being safer and
healthier, compared to “traditional” formats.
Less is more
Historically, odor control was the primary and sole driver for Air
Care usage. While odor control still drives 62% of consumers
to use Air Care products more often, slightly more consumers
attribute their increase in usage to a desire to create a pleasant
atmosphere.
Secondary usage motivators underscore the importance of
fragrance (54%) and format (27%) variety to build consumer excitement
and drive experimentation at the shopping aisle. Health
also arises as a key theme in the category, with more than one
Some brands are expanding product portfolios
and incorporating essential oils into formulations;
Aroma 360’s Hotel Collection room sprays are
inspired by popular hotels and include essential oils.
such as emotional well-being
at the forefront. This will move
Air Care from being merely a
functional product to one that
supports modern lifestyles and
competes more effectively against
adjacent categories, such as
scented cleaning products…