Store Brands

FEB 2017

Store Brands delivers unprecedented strategic and tactical information needed by retail executives to develop and support compelling, differentiated store brand programs to build customer loyalty.

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Emerging Fragrance Trends 4 4 Store Brands / February 2017 / www.storebrands.info large-scale commercial products where cost matters, which gives private label an opportunity," he adds. Store brands have the opportunity to compete for every shopper, not just price shoppers, and build loyalty in the process, Burns says. "When you develop winning fragrances, you not only attract shoppers with the emotional and sensory benefits that really matter to consumers, you also develop the power to compete aggressively against national brands," he explains. Natural's lure Sales of natural fragrance blends are expected to outpace the overall natural flavor and fragrance market, estimates The Freedonia Group, a division of MarketResearch.com., in its October report, "Natural Flavors & Fragrances." With forecasted annual growth of 5.2 percent until 2020, Freedonia predicts sales of natural fragrance blends will reach $290 million. Health and wellness trends, as well as environmental concerns, are shaping fragrance preferences, Troyak says, with the natural/clean movement gaining in popularity. "Our desire for good health influences how we react to fragrances," Burns says. "For example, we love fresh, invigorating, uplifting and emotionally inspiring fragrances for our shampoos, lotions and hair-care products." The cosmetic and toiletry market accounted for more than three-quarters of natural fragrance blend sales in 2015, Freedonia reports. In that segment, skin care products are expected to offer the best opportunities for growth through 2020. The demand for body washes is also expected to bolster growth. Sales of environmental fragrance goods — air fresheners, deodorizers, candles, potpourri and incense — are also expected to accelerate through 2020, according to The Freedonia Group. Innovations in diffusers and other scent delivery systems could "reignite the relevance of home fragrance and expand usage occasions," notes Carol Spieckerman, president of Spieckerman Retail, a retail strategy and communications agency. "Fragrance is the latest category to get swept up in the convergence of technology and everyday products. On a broader scale, retailers are returning their attention back to harnessing the power of physical retail experiences after being distracted by digital over the past few years. Fragrance is part of that picture as retailers explore the potential to create multi-sensory environments," Spieckerman adds. In the cleaning product segment, Freedonia expects above-average sales advances for products with natural fragrance blends, especially in dishwashing and laundry detergents, but also in sanitation goods and polishes. Cleaning products accounted for nearly one-fifth of total natural fragrance blend demand. Consumer demand for products free from artificial additives also continues to grow, driven by concerns over the effects of synthetic ingredients on health. Consumers are growing more interested in natural product claims, but the lack of standards for making such claims can cause confusion for consumers, according to global market research firm Mintel's 2016 September report, "Fragrances – US – What's In?" The report concludes that the consumer trend toward demanding transparency will lead them to demand to know what ingredients are used in fragrances. Customizing scents Scent preferences are highly personal, and that truth has driven the popularity of customized fragrances, the trend behind the growth of layering kits and fragrance oils, Mintel states. Consumers have come to expect product customization, Mintel points out, and it is particularly relevant in the fragrances market, where nearly 60 percent of consumers have either tried or are interested in trying custom-blended fragrances. Initially seen in the fine fragrances market, customization has moved into mainstream products, the report notes. Store brands can succeed by shaping both fragrances and fragrance options, especially for the experiential and experimental millennial and Generation Y shoppers, who now surpass even the baby boomer segment, Burns says. Understand their unique tastes, the diversity

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