San Francisco-native Shreya Aggarwal launched her Caftari brand in 2023 with a trio of candles promising mood-enhancing effects. At the time, the market for wellness-boosting fragrances was still growing. Less than a year later, that market has only become more competitive with new functional fragrances from the likes of Charlotte Tilbury and Nette joining the sphere. But with its first retail partner, Caftari has its eye on growth: On Wednesday, Caftari’s wellness candles will arrive at clean beauty retailer Credo Beauty.
In recent months, numerous companies, from Snif to Bella Hadid’s Orebella, have launched fragrances promising feel-good benefits as much as appealing scents. Companies like Estée Lauder have invested further into research on the connection between aroma and emotion, while wellness perfume line Vyrao received a minority investment from L Catterton in September.
Aggarwal, a former buyer for Dermstore, is confident Caftari’s candles will stand out in a crowded market of functional fragrances.
“The connection between fragrance and wellness is not new or just discovered. Aromatherapy has been around for centuries, but now, with the recent commercialization of tangential industries [like meditation], there is an opportunity for fragrance specifically,” said Aggarwal. “We hope to get the credibility because [wellness] was always at the forefront [of our brand].”
Credo, which introduced its own fragrance standards in 2019, already carries fragrance brands like Michelle Pfeiffer’s Henry Rose and clean brand Ellis Brooklyn. And in March, it introduced clean body-care and candle brand Follain. But Caftari represents not only its first fragrance product to promise wellness benefits, but also the retailer’s plan to expand further into the home category. Jessica Trieber, Credo’s vp of brands, says the company is eyeing products like home fragrance sprays and laundry detergent that meet its clean standards.
“Our consumers want to live a clean and wellness-driven lifestyle, and they’re bringing that into all aspects of their life,” said Trieber. “If you’re burning a candle or if you’re using a detergent or a home spray, it’s something that the entire household is exposed to. We feel there needs to be more transparency and higher standards for those aspects.”
Caftari’s candles are made by Grasse-based fragrance manufacturer PCW with soy wax rather than paraffin, a petroleum product. Aggarwal said Caftari’s claims that its candles promote benefits like energy and stress relief are backed by neuroscientists contracted by the company and tested on focus groups made up of roughly 30 participants. If 80% of respondents say the scent produces a certain wellness effect, that claim will go into the product messaging. She said Caftari is currently developing a sleep-focused candle, with plans for further emotional benefits down the line.
“In terms of expansion, [sleep] is next in line. And then we want to make it more of a horizontal expansion, in the sense that you would have multiple different products with the same scent,” she said.
Aggarwal said Caftari surpassed $20,000 in sales by the end of 2023 after launching in November. It saw 200% growth from its first to second quarter. But growing solely through direct-to-consumer channels is increasingly challenging, she noted, with the customer acquisition costs going up on social channels like Instagram and Facebook.
“With that, plus the saturation of the market, it’s hard for any brand to grow just through [direct sales,” she said. “Because I have that background as a buyer, I know what they’re looking for and how to be successful at a retail partnership.”
Caftari will be sold at 10 out of Credo’s 15 stores across the country, with plans to expand to the remaining stores if the brand performs well. And with the retailer already preparing for the holiday shopping season, Aggarwal will be making appearances at select Credo stores to educate consumers on the brand.
While Caftari meets Credo’s standards for clean, Aggarwal said clean is not at the forefront of its marketing. Credo Beauty was founded in 2015 when clean beauty was still a nascent buzzword in the beauty world, but now that the clean market has expanded to mass retailers like Sephora and Ulta, Credo is finding new ways to grow. In September, the retailer launched a private-label skin-care line featuring pumps made from recycled resin.
“If that term [clean] could eventually be obsolete, that’s amazing, but we’ll always continue to push our Credo standards and to try to move the industry forward,” said Trieber.
But wellness benefits, be it sleep or concentration, are hard for consumers to test in-store when shopping for a candle. The primary function, providing a pleasing scent, is still key to landing a sale. “Ultimately, customers are only going to buy it if it smells good,” said Aggarwal.
