The Indian Home Aroma Market is Set to Grow by 250 pc in the Next 5 Years

The market of home aroma in India will continue to move upwards, stemming from growing demand for lifestyle products, evolution in consumer preferences, and transformation in retail.
The Indian Home Aroma Market is Set to Grow by 250 pc in the Next 5 Years

The lifestyle aroma market in India is presently sized at around  $500 million, out of which the home aroma category comprises ~ 40 percent of the market share. The market is still small and constitutes just ~ 3 percent of the global home aroma market which is valued at around $7.2 billion. However, the silver lining is the fact that the market is set for explosive growth and is expected to reach $700 million by 2027, as per internal research by Rosemoore.

Gone are the days when the idea of home aromas, mostly hovering around inexpensive bathroom fresheners and room sprays, was found on the shelves of hypermarket stores. The Indian home aroma market has gone from strength to strength in recent times. Increasingly, households now understand how the aroma is integral to the idea of décor and ambiance. It is no more a non-essential luxury but gradually becoming indispensable to one’s lifestyle. Like people decorate their homes in a specific style, similarly now they prefer to use aromas. Home aromas and fragrances are now becoming an extension of our personas.

Increasingly in homes, offices/workstations, hospitality/F&Bs, high-street outlets, fragrance products such as diffusers, scented candles, scented tea lights, and potpourri, are finding their way. People now understand how having the right fragrance product in a space can refresh the surroundings, vitalize the overall atmosphere, and ensure physical and mental wellbeing. A growing work-from-home culture is also making Indians realize how keeping the right aroma at the work desk can help in focusing better, cut distractions, and fight the fatigue of isolated working hours.

The market of home aroma in India will continue to move upwards, stemming from growing demand for lifestyle products, evolution in consumer preferences, and transformation in retail. Institutional investors are also realizing the potential in the segment and are betting big on the market.

The pandemic has also reinforced the idea of hygiene and the importance of maintaining air quality. Though there is limited clinical evidence available, anecdotal research in the past has suggested that numerous popular aromas such as lavender, lemongrass, eucalyptus, jasmine, etc. are rich in antibacterial properties and can be a natural line of defense to neutralize airborne infections.

Transforming Retail Distribution

The retail reach of home aromas has also transformed in recent years. Today, we can find them widely available on the shelves of malls, supermarkets, hypermarkets, high streets, departmental stores, etc. Interestingly, they are also now available in gift shops, book stores, furniture and décor shops, etc, underlining their growing popularity in recent times.

In the foreseeable future, e-commerce will also give a big push to the demand for home aromas and the lifestyle market in India. Horizontals like Amazon and Flipkart have grown multifold in recent times, thereby pushing the reach of categories such as personal care, lifestyle, home fragrance, interior décor, etc.

The growing digitization of retail and grocery channels will also continue to fuel the demand for home fragrances in India, thereby adding to industrial growth. India’s consumer retail ecosystem is an interesting watch and with big indigenous brands like Tata and Reliance also raising their stake, the game will be more exciting in the times to come.

Besides horizontals and retail-based verticals, individual brands are also augmenting their e-retail capabilities.
 

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