Most gestures of respect have some form of acknowledgment.
Salutes, bows, Waves, and tips of the hat are all normally “returned.”
“Rev. Father, Bless!” is normally responded with a blessing.
Hugs are uncomfortable if not returned. As Fr. Surge once said, “It’s not easy to hug a stick.”
Pax vobis cum… Et cum spiritu tuo.
In the case of bowing before being incensed, one is also bowing in submission, acknowledging that holy fragrance is being shared, and that one is part of the group being incensed, and giving permission, as well.
Further, remember the prayer used when incense is added: May our prayers rise to heaven like the smoke of this incense.
Remember also: incense is used as a symbol of purification, as well, since its fragrance lingers on those incensed.