Candle Market Size (2024 – 2030)

The Candle Market was valued at USD 6.76 Billion in 2023. Over the forecast period of 2024-2030, it is projected to reach USD 10.3 Billion by 2030, growing at a CAGR of 6.20%.

Candles are frequently crafted from paraffin wax, a colorless substance derived from petroleum oil and coal shales. They are commonly employed for decorative purposes at various venues, occasions, and celebrations such as Diwali, Christmas, weddings, and the ubiquitous candlelit dinners.

The candle market has witnessed notable expansion in recent years, paralleling the increasing usage of candles. Consumers are increasingly purchasing candles to uphold a healthy lifestyle. Burning candles offer significant health advantages, aiding in maintaining calmness of mind, refreshing moods, and promoting healthy sleep patterns. The growing incorporation of candles into daily routines stands as a primary driver propelling the candle market's growth.

Key Market Insights:

• Container candles hold the largest market share of 45% due to their design versatility and ease of use.

• Soy wax is gaining significant traction due to its eco-friendly nature and clean burning properties.

• Scented candles infused with essential oils are a growing segment, driven by consumer interest in relaxation and stress relief.

• Candle sales experience significant spikes during holidays like Christmas and Diwali, driven by gifting and decorative purposes.

• Currently, a plethora of candle varieties cater to diverse customer preferences, encompassing colored and shaped candles, scented options, and those adorned with designer holders.

Candle Market Drivers:

Increasing expenditure in the interior design of homes to propel the market growth

Several factors propel the momentum of new residential construction endeavors, including augmented disposable income, rapid industrialization, burgeoning urbanization, expanding employment opportunities, and a gradual uptick in investments. Additionally, sustained legislative support in the form of low-interest loans and tax incentives significantly bolsters the demand for new residential properties.

Consequently, there has been a surge in investments directed towards enhancing home interiors. This surge has further amplified the demand for candles and other home decor items. Candles, in particular, play a pivotal role in augmenting the aesthetic allure of interior home designs.

Moreover, many countries have made notable strides toward fostering energy-efficient and environmentally sustainable housing solutions in recent years. For example, the Sierra Crest community in Fontana, California, has pioneered the construction of 20 homes utilizing solar energy, thereby achieving the distinction of being the state's inaugural "zero net energy usage" community. This concerted effort towards eco-friendly housing initiatives is likely to fuel the demand for environmentally conscious home design products like candles.

Increasing Interest in Aromatherapy drives market growth

Increasing awareness regarding the therapeutic advantages of aromatherapy drives the demand for scented candles, thereby fueling market growth. Consumers are increasingly drawn to these products as they seek relaxation, stress alleviation, and mood enhancement through the use of fragrances.

Candle Market Restraints and Challenges:

Fluctuating Raw Material Prices to hinders Market Growth

The candle industry's susceptibility to fluctuations in raw material prices, notably wax and fragrance ingredients, poses significant challenges. Supply chain disruptions, stemming from natural calamities or geopolitical events, exacerbate these challenges by causing shortages or price instabilities in key raw materials, thereby complicating manufacturers' operational management and pricing strategies.

Candle Market Opportunities:

The use of organic candles creates opportunities.

Organic candles are crafted from environmentally friendly materials like beeswax and soy wax, sourced entirely from natural origins. Beeswax is derived from honeycombs, while soy wax is extracted from soybean oils, also known as vegetable wax. The growing consciousness among consumers regarding healthy living practices has spurred the uptake of eco-friendly and organic products. These candles, which emit no harmful substances during burning, stand out as significant drivers propelling the candle market's expansion. 

CANDLE MARKET REPORT COVERAGE:

Candle Market Segmentation: By Type

• Pillar Candles

• Votive Candles

• Container Candles

• Taper Candles

• Floating Candles

• Tea Light Candles

• Specialty Candles 

The votive candle segment has emerged as the dominant force in the market and is projected to maintain its leading position throughout the forecast period. Votive candles constitute a distinct category within the candle market, distinguished by their compact size and cylindrical form. Typically, votive candles are short and squat, wider than traditional taper candles yet smaller than pillar candles. Despite their diminutive size, votive candles offer several hours of illumination, albeit with a relatively shorter burn time compared to larger counterparts like pillars or jar candles. This makes them ideal for temporary use or as decorative embellishments for various special occasions.

Candle Market Segmentation: By Material

• Paraffin Wax

• Soy Wax

• Beeswax

• Palm Wax

• Gel Wax

• Others

The Paraffin Wax segment has asserted its dominance in the market and is anticipated to maintain the largest share of the Candle Market throughout the forecast period. Paraffin wax stands out as one of the most prevalent materials in candle manufacturing, owing to its cost-effectiveness, versatility, and user-friendly properties. Predominantly comprising paraffin wax, these candles derive their base from a white or colorless solid wax extracted from petroleum by-products. Renowned for its exceptional capacity to retain fragrance and color, paraffin wax is a favored option for scented and colored candles. Its malleability enables easy molding and shaping into various candle types and sizes, ranging from pillars to votives, tapers, jar candles, tea lights, and beyond. This adaptability empowers candle manufacturers to meet diverse consumer preferences and market demands effectively.

In contrast, Palm wax-scented candles utilize hydrogenated palm oil as their primary ingredient, serving as a sustainable alternative to conventionally produced wax. These candles offer a burn quality akin to paraffin wax while exhibiting comparatively lower environmental toxicity. Non-profit entities like the Roundtable on Sustainable Palm Oil (RSPO) play a pivotal role in overseeing the ethical sourcing and regulation of palm oil, ensuring its procurement from sustainable farms.

Candle Market Segmentation: By Fragrance

• Scented Candles

• Unscented Candles

The scented candles segment emerges as the most rapidly expanding sector within the market. Scented candles are enriched with fragrances designed to evoke aromatic environments within households and surroundings. Noteworthy trends within this segment encompass an escalating preference for natural and botanical-inspired scents, exemplified by fragrances like lavender and eucalyptus. This inclination mirrors consumer aspirations for wellness and relaxation.

Furthermore, the segment witnesses sustained interest in exotic and seasonal fragrances, including citrus, pumpkin spice, and holiday-themed scents. These offerings cater to a wide spectrum of sensory experiences and seasonal trends, reflecting the diverse preferences of consumers.

Candle Market Segmentation: By Distribution Channel

• Online

• Offline

Offline distribution channels, including brick-and-mortar retail establishments, wield considerable influence over the expansion of the candle market. Physical retail outlets, such as department stores, home goods stores, gift shops, and specialty stores, offer consumers the chance to physically inspect and experience candles before making a purchase. This aspect holds particular significance for individuals seeking specific scents or colors.

Moreover, physical stores allow customers to visualize how candles will complement their living spaces, aiding in more informed purchase decisions. This tactile and visual engagement enhances the overall shopping experience and contributes to the growth of the candle market.

Candle Market Segmentation- by region

• North America

• Europe

• Asia Pacific

• South America

• Middle East & Africa

The Asia Pacific candles market holds the foremost position and is anticipated to demonstrate a notable 42.90% Compound Annual Growth Rate (CAGR) over the forecasted period. This surge can be attributed to the escalating usage of candles and the adoption of luxury lifestyles in the region's burgeoning economies, notably China and India. These nations, distinguished by their substantial populations and comparatively lower candle production costs compared to other regions, fuel the market's growth trajectory.

In North America, the candles market is poised to witness significant growth with a substantial CAGR projected from 2024 to 2030. This upswing is primarily driven by heightened demand for candles, particularly during festive seasons such as Christmas or Easter. Additionally, the tradition of gifting candles on special occasions, coupled with the presence of renowned candle manufacturing enterprises and regular product launches, further propels the market growth. Notably, the US candle market commands the largest market share, while the Canadian candle market emerges as the fastest-growing market within the region.

COVID-19 Pandemic: Impact Analysis

During the COVID-19 pandemic, the candle industry experienced significant economic challenges due to the widespread impact of the coronavirus disease. Measures implemented by governments to prevent and control the spread of the virus, such as nationwide lockdowns, severely disrupted the supply chain of raw materials, leading to substantial disruptions in production cycles.

Furthermore, government-imposed restrictions on events and hospitality establishments, where candles are commonly used for decoration purposes, resulted in a sharp decline in demand for candles. Even following the lifting of restrictions on hospitality venues, demand for candles remained subdued as individuals continued to avoid dining out and attending events due to concerns about virus transmission.

The ongoing restrictions on social gatherings further compounded the challenges faced by the event industry, as large gatherings were prohibited to prevent the spread of the virus. As a result, the demand for candles for use in events such as weddings and other social gatherings remained depressed.

Overall, the COVID-19 pandemic exerted significant downward pressure on the candle industry, impacting both production and demand due to disruptions in the supply chain and restrictions on social activities and hospitality establishments.

Latest Trends/ Developments:

• In January 202the 3, TOM FORD brand was acquired by ELC, as announced by the company. This acquisition of the TOM FORD trademark by ELC, along with the extension of existing license agreements, ensures continuity and continued growth for the "TOM FORD" brand, solidifying its position as one of the premier luxury brands in the market.

• In 2022, AnyMind Group revealed the launch of Shefar, a Japanese direct-to-consumer fragrance brand, which introduced a new line of scented candles featuring two distinct varieties. This expansion into candles expands Shefar's product range, catering to consumer preferences for diverse sensory experiences and ambiance enhancement.

• Also in 2022, Balmain and Trudon collaborated to unveil a limited-edition Balmain-Trudon scented candle, showcasing a unique fragrance inspired by Trudon's popular Ernesto candle. This collaboration introduces an exclusive scent to the market, offering consumers a distinctive olfactory experience.

Key Players:

These are the top 10 players in the Candle Market: -

1. Dianne's Custom Candles

2. ZHONG Nam Industrial (International) Co. Ltd

3. Dandong Everlight Candle Industry Co. Ltd.

4. Candle-lite

5. Bath & Body Works Direct Inc.

6. SC Johnson & Son Inc.

7. Armadilla Wax Works

8. BeCandle

9. NEST Inc.

10. The Yankee Candle Company Inc.