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Procter & Gamble’s Febreze Product Technology

Procter and Gamble, also known as P&G, have been filling people’s homes with grooming, baby, health care, and cleaning products since the 1800s and continue to do so successfully. In 1998 P&G released one of their innovative products called Febreze.“Febreze has the technology to clean away bad odors at the source” (2019), which keeps consumers buying their products from air fresheners to light wax melts.

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Supply, Demand, and Market Equilibrium

Price elasticity of supply or demand is how much demand for a product or service will change with a given change in the price of the product or service. The following statement would make the demand and supply for Febreze have no major change if there was an increase in price, making it elastic. Grandview Research stated, “The trend of consumers willing to pay a premium price for aesthetic fragrances is encouraging air freshener manufacturers to expand their product portfolio, therefore, prompting growth in revenue in this region” (2018).

Consumers are always going to want their homes, cars, and offices smelling good, and an increase in price would not change that desire. While it can be inelastic due to being alternatives in products that make homes, cars, and offices smell good. If Febreze went up in prize, consumers could decide to go with oil fragrances, the only difference is that Febreze eliminates smell as oil covers, and consumers look more for eliminations then cover ups.

Non-price determinants are those economic factors besides price that affect the demand and supply. The economic environment can be one factor of the demand for Febreze. Public views of air care products can be negative, and questions over product protection can be a major obstacle to the use of air care products by customers (2019).

If the United States Environmental Protection Agency (EPA)researched and reported that air freshener chemicals were a risk factor, this could decrease the demand for air fresheners. This risk factor could discourage consumers whose concerns about the safety of their family, pets, and environments and the demand be affected. In turn the supply for Febreze decreased. Consumer’s presence can be another non-price factor on the effect of demand for Febreze.

Febreze was first produced in a glass-cleaner bottle making, which meant to consumers to keep it under the sink, and though it was appealing, purchases were not high (2017). When the bottle was revamped to be kept on top of counters and more visible, the demand increased. Technology and taxes could be two non-price factors of supply. If P&G is in need of new innovative technology in productivity and therefore, production costs per unit would decrease, and more of the product Febreze could be supplied to suppliers. If the government increased taxes on home care products, this could decrease the supply of Febreze.

Industry and market equilibrium

The industry of air fresheners in the United States is a promising avenue for its players. According to the research, despite being a non-essential industry, air fresheners demonstrate stable growth in the market, and the trend is expected to continue in the 2020s (“U.S. Air Fresheners Market Analysis by Product Type,” 2018). The current value of this segment amounts to 1.62 billion dollars, and the current forecast expects a 3.4% growth until 2025 (“U.S. Air Fresheners Market Analysis by Product Type,” 2018).

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Such numbers indicate that the market sees an increasing demand for the product, as over 80% of Americans have reported that they use air fresheners at their homes. However, the focus of consumers’ attention is currently shifting toward varieties that are more expensive. The public has expressed interest in premium aesthetic fragrances, and this segment has reached its record-high point in terms of sales. Accordingly, producers aim at meeting the demand by adding new, experimental products to their offers. Overall, the industry of air fresheners demonstrates continuous development, creating favorable conditions for Febreze.

In addition to its domestic success, the industry of air fresheners is growing on a worldwide scale, as well. Febreze has joined the common trend, becoming one of the most popular products of its type with over 1 billion dollars in global annual sales (Byron, 2011). If the industry continues its development along the same lines, the market equilibrium may shift toward demand. Air freshener producers will have to adjust accordingly in order to preserve the balance, and the current economic situation enables such development. Due to the stable increase in sales, companies, including P&G, have been able to accumulate extra money.

These funds must be correctly allocated between different development goals. As the data described above shows, in order to meet the growing demand, it will not suffice to merely increase production. Future supplies of Febreze must be tailored in accordance with the public’s needs, which implies a wider variety and improved quality of fragrances. This way, the brand will be able to remain profitable and, potentially, dominate its market segment.


U.S. Air Fresheners Market Analysis by Product Type (Aerosol/Spray, Electric Air Fresheners, Gels, Candles, Others) by Application (Residential, Commercial, Cars, Others), Competitive Analysis and Segment Forecasts, 2018 – 2025. (2018). Grand View Research. Web.

Byron, E. (2011). Febreze Joins P&G’s $1 Billion Club. The Wall Street Journal. Web.

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