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Candle-making began several hundreds of years ago out of necessity. Candles were used for lighting and as a way to tell time.
A lot has changed in several hundred years
The first candleCirca 500 BCE
William Procterfirst candle in the U.S. 1835
Religious usesof candles
And there was LIGHT!In 1879 the light bulb was born and candles became somewhat obsolete
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On the other side of the globea new technology was being invented United Sates In 1947
two American scientistsGoodhue and Sullivan
Norway 1927 Erik Rotheim
patented an aerosol can
Kills 99.9% of mold and mildew*
Kills 99.9% of bacteria on soft surfaces* as a spot treatment
Kills 99.9% of odor causing bacteria*
Kills 99.9% of viruses and bacteria*
From fighting bugs to fighting mildew (and everything else!)
Claire Burke1960s
Mike Kittredge 1970s
King of Candles, Harry Slatkin 1990s
From AIR CARE to HOME FRAGRANCES
Leading marketers have changed in the past decade
S.C.Johnson
Blyth
Yankee Candle
Candle-Lite
Henkel (Dial)
Yankee Candle
S.C. Johnson
Bath & Body Works
Reckitt Benckiser
Procter & Gamble
1
2
3
4
5
Then2000
Now2010
Forbidden Fruits Collection (PartyLite)
Scentbug, Scentportables, Wallflowers and Figural Candles (Slatkin & Co)
GallerieCollection
(WoodWick)
Boho Jar(Illume
Candles)
We’ve come a long way
No Spill Diffuser (Febreze)
Home CollectionWooden Wick
(Febreze)
Winter LuxuryScent Ribbons
(Air Wick)
Jasmine & Wild Orchidreed diffuser
(Glade)
A very long way….
Market Overview
Sales have grown at a healthy 6% CAGRover the past 10 years
0
500
1,000
1,500
2,000
2,500
3,000
3,500
2000 2010
$ Million
Candle share has declined as diffusers have really stepped up
0%10%20%30%40%50%60%70%80%90%
100%
2000 2010
All otherDiffusersRoom spraysCandles
% Of total
Innovation has propelled price points upwards
• Candles: $2.99-$12.50
• Diffusers: $0.99-$5.99
• Room sprays: $0.99-$2.99
Then • Candles: $2.99-$35.00
• Diffusers: $2.99-$35.00
• Room sprays: $2.99-$95.00
Now
Innovation has helped drive sales in all categories
Candles
• New shapes• New forms• Blendables• Fragrance innovation
Diffusers
• Battery operated• Blendables• New forms
Room sprays
• New dispersal systems• Multifuntional
products
Scents are proliferating from candles to other categories
Candles
Diffusers Room sprays
Apple Cider (Yankee Candle)Scent Notes: Hot cider, cinnamon, nutmeg, and cloves
Green Tree Citrus (Febreze)Scent Notes: Green tea and citrus notes
Caribbean Escape (Slatkin & Co.)Scent Notes: Melon, raspberry and coconut
Lemon Pound Cake (Village Candle)Scent Notes: Vanilla bean, lemon zest, hazelnut and anise
Vanilla Bean (Chesapeake Bay Candle)Scent Notes: Vanilla nectar, sugar cane, lemon
Apple Cinnamon (Glade)Scent Notes: Spiced cider and apple pie
Citrus Cilantro (Pier 1 Imports)Scent Notes: Lemon, cilantro, bergamot, and grapefruit
Pumpkin Chai (Nest Fragrances)Scent Notes: Wild pumpkin, masala chai, cardamom and ginger
Grapefruit Fandango (Aromatique)Scent Notes: Grapefruit, pineapple, mandarin orange and musk
Lavender & Chamomile (Air Wick)Scent Notes: Lavender essence, and chamomile
Candles
CANDLESInnovation and newness have helped spark sales
Yankee Candlecaters to gift
channel
1980s
Mass brands enter market Botanicals
LayeredMultiplesBendables
New shapes
Today
SoyGel/preserve
candlesOil
candles
1990s 2000s
Sales continue to grow although albeit at a slow pace
1,150
1,200
1,250
1,300
1,350
1,400
1,450
1,500
2000 2010
$ Million
Odor eliminating
Fragrances, fragrances, fragrances!
Air freshening
Smaller sizes of filled candles
Unique shaped containers
Trends in the candles category include:
Market leaders:
1
2
3
4
5
Ambiance with wood wick
Smal
ler S
KUs
Wood Wick Petites (Virginia Candle)
Mini 1.6 Oz Filled Candle(Slatkin & Co.)
Small Tumbler Candle(Yankee Candle)
High
hom
edé
cor v
alue
Spic
y, fr
uity
an
dgo
urm
and
scen
ts
Gallerie Collection(WoodWick)
Filled Decorative Candle(Slatkin & Co.)
Pier 1 Scroll Candles(Pier 1 Imports.)
Apple Cider(Yankee Candle)
Caribbean Escape(Slatkin & Co.)
Ginger Peach(Pier 1 Imports.)
Cherry O!(Claire Burke)
Pineapple Cilantro(Yankee Candle)
Bakery Cupcake (Wood Wick)
Pomegranate Mango(Febreze)
Apple Pie(Bridgewater)
Warm Gingerbread(Colonial Candle)
Fruit scents and bakery scents are the most popular fragrance types in 2010.
The holiday season is marked by attractive packaging, special promotions and seasonal scents by mass marketers.
Home fragrance marketers are increasingly adding products that are environmentally friendly or reflective of the green movement
• Candle ingredients
• Wick-burning qualities
• Reed diffusers
• Scented rocks
• Essential oils
Candles increasingly feature environmentally-friendly wicks, better burn rates, and cleaner burning
• WoodWick Candles has a natural wick made form organic wood that offers the sound of crackling fire.
• Chesapeake Bay’s Pure & Natural candles have lead-free cotton wicks.
• Clean burn is a product claim also made by Bridgewater Candles.
• Lumi-Lite private-label products have a patented wick sustainer that allows the candle to extinguish itself one-half inch from the bottom, where most fires from candles are started.
Diffusers
DIFFUSERSNew innovations have driven the category
Jelly jar
1990s
Scented oil plug-ins
Appliances
New shapes
Today
Blendables
2000s
Battery operated
Scented oil diffusers in 2000 gave birth to a whole new generation of products
DIFFUSERSInnovation and newness have helped electrify sales over the past 10 years!
0
200
400
600
800
1,000
1,200
2000 2010
$ Million
Odor eliminating
Fragrances, fragrances, fragrance!
Decorative
Dual chamber
Convenience/portable
Trends in the diffusers category include:
Market leaders:
1
2
3
4
5
Battery-operated diffusers spiked sales in 2004
Blendable fragrances transfer to the category
SCJ’s Create-a-Scent launched in 2005
Yankee and Febreze follow with dual chamber oil electric diffusers in 2006
Febreze Scentstories adds a new dimension
• $35.00 price tag
• Sales tripled in first full year on market
• Modeled after CD player
• Heavily supported by P&G
Reed diffusers fueled category growth from 2007 to 2009
• First introduced by The Thymes Ltd. in 2002
• Price points to $75.00
• Now in most home fragrance lines/all channels
Mass-market diffusers proliferate
Glade Glass Scents (2005) Method Aroma Capsule (2006)
Key new product introductions in 2009/2010 are heavily focused in the diffusers category.
WoodWick Spill-Proof Diffuser(Virginia Candle Company)
Slatkin & Co. Scentbug (Limited Brands)Renuzit Crystal Elements (Henkel)
New products range from those with added decorative value to pure innovation.
Glade Sense & Spray (S.C. Johnson)
Air Wick i-Motion(Reckitt Benckiser)
Febreze Home Collection Flameless Luminary(Procter & Gamble)
ScentPortable Holiday 2010(Bath & Body Works)
Room Sprays
Reversing a declining market has been an uphill battle
490495500505510515520525530535540
2000 2010
$ Million
• Mask odors
• Leave scent behind
Then• Eliminate odors
• Neutralize odors
• Leave scent behind for up to one hour
• Sanitize air
• Kill airborne bacteria
Now
Products now do more than ever
Trends in the room sprays category include:
Odor control
Fragrances, fragrances, fragrance!
Higher price points
Unique package designs
Long-lasting fragrance
Market leaders:
1
2345
P&G’s Febreze extended to category in 2004 and leads growth
• Launched in 2004
• Posts a 8.1% CAGR from 2005 to 2010
• Now third leading brand after AirWick and Glade
Fragrances that are nature-based and made with essential oils continue to gain in popularity
• Rose and other floral scents are popular.
• “Superfruits” that contain antioxidants like pomelo and pomegranate are in vogue.
• Simple, clean scents that are new include citron basil, white thyme and wild poppy, and watercress.
Specialty and prestige players show interest from time to time
• Yankee repackages aerosols in decorative boxes
• Henri Bendel launches room sprays
• Bath & Body Works introduces mood-balancing sprays
• Jo Malone introduces “Living Cologne” at $95.00
• Simmering oils• Incense• Fragrance oil burning lamps• Lamp rings• Sachets• Potpourri
• Fragmented market• Fragrance oils biggest contributor and
growth driver• Small/older consumer base• Sachets important segment• Important “add-on” category for marketers
SPECIALTY PRODUCTSThese categories remains quiet
Includes
Market Trends
Outlook
3,100
3,200
3,300
3,400
3,500
3,600
3,700
3,800
2010 2015
$3.3 billion
$3.7 billion
CAGR,2.3 %
Industry sales are projected to grow at a slow pace
SLOWGROWTH
Positive factors Negative factorsContinued growth through
mass outlets
Multi-functional products
Opportunity forvalue-added products
Strong spending in diffusers and room sprays make it difficult to
grow candles
Need NEW technology to drive business
New channels canprovide opportunity
Many factors will affect the industry
• Fragrance innovation
• New finishes
• Products to emphasize flame glow
• New diffuser forms
Innovation will continue to play a key role
Americas____________
Asia ___________
Europe___________
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Karen DoskowIndustry ManagerPhone: 973-435-3381E-mail: [email protected]
Kline & Company, Inc.35 Waterview Blvd.Suite 305Parsippany, NJ 07054Phone: +1-973-435-6262Fax: +1-973-435-6291
www.KlineGroup.com
Kristy AltenburgAccount ManagerPhone: 973-435-3367E-mail: [email protected]
