The Global Candles Market Report Reveals Gains from Proliferation of Online Shopping Platforms, and Growing Popularity as Decorative Item
Industry: Consumer Goods
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Report Type: Ongoing
Report ID: PMRREP34617
The global candles market is projected to increase from US$9.56 Bn in 2024 to US$14.2 Bn by the end of 2031. The market forecast indicates a CAGR of 5.70% during the forecast period between 2024 to 2031.
Key Highlights of the Market
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Attributes |
Key Insights |
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Candles Market Size (2024E) |
US$9.56 Bn |
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Projected Market Value (2031F) |
US$14.2 Bn |
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Forecast Growth Rate (CAGR 2024 to 2031) |
5.70% |
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Historical Growth Rate (CAGR 2019 to 2023) |
4.90% |
The candles market is expected to continue its positive trajectory due to ongoing innovations in product offerings, including unique scents and designs, as well as advancements in sustainable packaging. The market growth is further supported by seasonal demand spikes, especially during holidays and festive seasons when candles are popular as decorations and gifts.
With increasing consumer awareness and continued emphasis on wellness and eco-consciousness, the market presents opportunities for both established brands and new entrants to thrive. Sustainability is a key factor, with consumers increasingly opting for eco-friendly candles made from soy wax, or beeswax.
The focus on wellness is another big influence, as aromatherapy candles promoting relaxation and stress relief gain popularity. Unique and interesting fragrances along with creative container designs are likely to emerge as brands vie for consumer attention in this growing market. Candles for home add warmth and ambience to home environments contributing to the aesthetic appeal of living spaces.
The growing popularity of aromatherapy that offers therapeutic benefits is also contributing to market expansion. The market is also benefiting from the growing influence of e-commerce, which has raised accessibility.
The candles market has exhibited consistent growth from 2019 to 2023, driven by evolving consumer preferences and industry innovations. In 2019, the market saw steady demand across various segments, including scented, decorative, and specialty candles like aromatherapy products.
The year marked a notable increase in consumer awareness regarding the environmental impact of traditional paraffin wax candles, prompting a shift towards eco-friendly alternatives such as soy wax and beeswax. The market recorded a CAGR of 4.90% during the historical period from 2019 to 2023.
The market continued to expand driven by a combination of factors including heightened consumer interest in wellness products, sustained demand for decorative items, and demand for bath and body works candles for gifting purposes.
Market players diversified their product portfolios further, catering to niche segments such as artisanal candles and personalized gift sets. Sales of candle are expected to record a CAGR of 5.70% during the forecast period.
Increasing Consumer Preference for Eco-friendly and Sustainable Products
Consumers are increasingly opting for products made from natural and renewable materials such as soy wax, beeswax, and coconut wax instead of traditional paraffin wax. These natural alternatives are perceived as more environmentally friendly because they are biodegradable, emit less soot, and often come from renewable sources.
Growing awareness about environmental issues and sustainability has prompted consumers to seek products that have minimal impact on the environment. Candles made from natural ingredients align with these values, appealing to eco-conscious consumers who prioritize sustainable purchasing decisions.
Manufacturers are responding to the demand for eco-friendly products by expanding their offerings in the natural category. This market segmentation allows companies to differentiate themselves in a competitive market landscape, attracting consumers seeking sustainable alternatives.
Trend toward Wellness and Aromatherapy
There is a growing awareness of the impact of mental well-being on overall health. Aromatherapy candles are perceived as natural and non-invasive methods to improve mood and alleviate stress, aligning with broader trends towards holistic health and wellness.
Those infused with essential oils known for their therapeutic properties, such as lavender for relaxation or eucalyptus for stress relief, appeal to consumers seeking holistic wellness solutions. These candles are valued for their ability to create calming atmospheres and promote relaxation, making them popular choices for stress relief and mood enhancement.
The variety of scents available in aromatherapy products allows consumers to choose products that cater to their specific needs and preferences. Whether for sleep aid, energy boost, or relaxation, the versatility of aromatherapy candles appeals to a wide range of consumers seeking personalized wellness solutions.
Rising Raw Material Costs
Candle manufacturers face challenges due to fluctuations and increases in the cost of key raw materials like wax, fragrances, and wicks. The rising popularity of soy wax and beeswax candles, driven by the sustainability trend, can be susceptible to price hikes due to factors like weather conditions impacting crop yields.
The availability and cost of essential oils and synthetic fragrances can be affected by global market fluctuations and geopolitical issues. Even wicks and containers can experience price increases due to factors like rising production costs and supply chain disruptions.
Higher raw material costs can squeeze profit margins for candle companies, especially smaller players. This might force them to raise prices, potentially deterring some cost-conscious consumers. The increased cost of raw materials can limit resources available for research and development. This could slow down the introduction of new and innovative candle products.
Competition and Market Saturation
The candle market is a crowded space with established players and a growing number of new entrants, particularly in the handcrafted and niche candle segments.
Companies might resort to price wars to gain market share, further impacting profit margins for all players. Manufacturers can explore ways to optimize production processes and minimize waste to potentially offset some of the rising raw material costs.
Building strong relationships with suppliers and exploring direct sourcing of raw materials could offer some cost control for larger companies. Instead of solely competing on price, companies can focus on creating a strong value proposition that highlights the unique benefits and offers.
Targeting specific niche markets with specialized scents or handcrafted candles can help avoid direct competition with mass-produced brand.
Personalization and Customization Trend
Consumers increasingly seek personalized and customizable products. Manufacturers can leverage this demand by offering candles that cater to specific preferences, such as unique scent combinations, personalized labels, and customizable packaging. This approach not only enhances consumer engagement but also differentiates brands in a competitive market landscape.
Personalization can foster a deeper connection between the brand, and the consumer. When customers are involved in the creation process, they are more likely to feel a sense of ownership and loyalty towards the product and the brand.
In a crowded marketplace, customization can differentiate a brand from its competitors. Brands that offer unique and customizable options are perceived as innovative and attentive to consumer needs, which can give them a competitive edge.
Enhanced personalization encourages innovation in product design, materials used, and customization processes. This fosters creativity and allows companies to stay ahead by continually offering new and unique options to customers.
Votive Candles to Hold Significant Market Share
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Category |
Market Share in 2022 |
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Votive - Product Type |
25.80% |
Votive candles are typically smaller in size and more affordable compared to larger candle types like pillars or jars. This makes them accessible to a wide range of consumers, including those looking for budget-friendly options or those purchasing candles in bulk for events.
Votive candles market share 2022 was around 25.80% and this category is estimated to record a significant market share during the forecast period.
Many votive candles are available in a variety of fragrances, catering to consumer preferences for scented candles. This makes them appealing for those who enjoy using them for ambiance or aromatherapy purposes.
Manufacturers and retailers often offer votive ones in packs or sets, allowing for customization in terms of fragrance assortment or packaging. This appeals to consumers looking for curated collections or themed sets.
The market has been segmented into pillars, tapers, votive, container, and others based on product type. Votive candles are bigger and lasting compared to tea-light counterparts.
Paraffin Wax to Record Notable Share in the Market
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Category |
Market Share in 2022 |
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Paraffin - Wax Type |
30.40% |
Paraffin wax is relatively inexpensive compared to other types of waxes such as soy wax or beeswax. This type of candle wax recorded market share of 30.40% in 2022. This cost-effectiveness makes paraffin wax a preferred choice for mass-production where price competitiveness is crucial.
Paraffin wax has excellent fragrance-holding capabilities, which allows candles made from paraffin wax to release strong and consistent scents when burned. This is appealing to consumers who enjoy scented candles for ambiance or aromatherapy purposes.
The market has been classified into beeswax, paraffin wax, palm wax, soy wax and others based on wax types. Among these wax types, the paraffin wax type dominated the market exhibiting a significant share 30.40%.
One of the key factors that has impacted the adoption of the product largely such as the growing consciousness amid consumers regarding different benefits of paraffin wax.
North America’s Gains Lie in Premium Segment
|
Region |
Market Share in 2022 |
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North America |
31.55% |
There is increasing preference for high-quality, luxury candles that offer unique scents, attractive packaging, and longer burning times. This trend is driving the market toward high value per unit sales in North America.
Increasing awareness about sustainability and environmental impact is influencing consumer preferences. There is a growing demand for eco-friendly candles made from natural ingredients, which is prompting manufacturers to innovate and offer more sustainable options.
North America continues to record notable share in the market. This region led the market in 2022 with a share of 31.55% of the overall revenue. One of the primary factor that contributes to the regional market growth is the self-care trend.
2024
As of early 2024, major companies such as Yankee Candle and Bath & Body Works have responded to rising consumer preferences by expanding their offerings to include soy-based and beeswax candles. This shift reflects a growing demand for eco-friendly alternatives to traditional paraffin wax.
2022
Leading sustainable packaging firms like Huhtamaki have introduced advanced packaging solutions for push-up blister packs used in candles. These innovations are indirectly influencing the candle market by providing manufacturers with eco-friendly options.
Companies are heavily investing in research and development to broaden their product portfolios, catalysing further industry growth. These companies are also actively pursuing strategic initiatives to expand their global footprint.
The key initiatives include launching innovative products, forging strategic partnerships through contractual agreements, engaging in mergers and acquisitions, boosting investments, and advancing market developments.
In this increasingly competitive and expanding market landscape, competitors must focus on delivering cost-effective offerings to sustain and thrive. There is a growing presence of artisanal candle makers, and niche brands that emphasize handmade, natural, and eco-friendly products. These companies cater to consumers looking for unique scents, sustainable materials, and personalized offerings.
Established brands such as Yankee Candle, Bath & Body Works, and PartyLite hold significant market share due to their strong brand recognition, extensive distribution networks, and diverse product offerings. They often invest in R&D to introduce new scents and designs to meet evolving consumer tastes.
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Attributes |
Details |
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Forecast Period |
2024 to 2031 |
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Historical Data Available for |
2019 to 2023 |
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Market Analysis |
US$ Billion for Value |
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Key Regions Covered |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Report Coverage |
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Customization & Pricing |
Available upon request |
By Product Type
By Distribution Channel
By Wax Type
By Region
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Increasing consumer preference for eco-friendly and sustainable products is a key driver for market expansion.
Enhanced personalization and customization provides a key opportunity for the market players.
A few of the key market players are Bridgewater Candle Company, Colonial Candle, and Bath & Body Works Direct, Inc.
Increasing preference for high-quality candles is driving market growth in North America.
Paraffin is likely to hold a notable share of the market.
