Will Indian home aroma market grow in coming years? Expert predicts this

The lifestyle aroma market in India is presently sized at around USD 500 million, out of which the home aroma category comprises ~ 40% of the market share. The market is still small and constitutes just ~ 3% of the global home aroma market which is valued at around USD 7.2 billion. Talking about Indian home aroma market, Ridhima Kansal, Director, Rosemoore, says, "However, the silver lining is the fact that the market is set for explosive growth and is expected to reach USD 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 ambience. 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," she added.

"Increasingly in homes, offices/ workstations, hospitality/F&Bs, high street outlets, fragrance products such as diffusers, scented candles, scented tea lights, 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 & 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," she further explained.

"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," she suggested.

Talking about retail distribution's role in Indian home aroma market, she said, "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 of 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. Even, at Rosemoore, we understand that going forward, a sizable portion of demand will emanate virtually and accordingly build new digital capabilities," she concluded.

(Disclaimer: The views/suggestions/advice expressed here in this article are solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)