Candles Market

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

New residential construction activities are driven by several causes, including increased disposable income, fast industrialization, rising urbanization, expanding employment, and a gradual increase in investments. Furthermore, consistent legislative backing in the form of low-interest loans and tax-waiver programs also significantly increases demand for new homes. Consequently, there has been an increase in investment in home interiors. For instance, consumer spending on home furnishings climbed at a CAGR of more than 5% ly between 2017 and 2022. As a result, there is an even greater demand for candles and other home decoration products.

The use of candles greatly enhances the aesthetic appeal of interior home designs. Many nations have made steady progress toward energy-efficient, environmentally friendly housing in recent years. For instance, the Sierra Crest community in Fontana, California, has constructed 20 homes using solar energy to become the state's first "zero net energy usage" community. This program might help increase the demand for eco-friendly home design items like candles.

Furthermore, ization and liberalization policies, the expansion of the e-commerce industry, and other factors have made international trade easier and contributed to the rise of B2B and B2C companies.  online sales and purchases of goods and services have expanded due to technological advancements and rising internet usage. The steady change in consumer spending and buying patterns has increased the e-commerce market's potential for growth. The development of current technologies such as artificial intelligence, information and communication technology, and others have increased the client base, opening up lucrative growth opportunities for important industry suppliers.

For instance, P&G's total e-commerce sales in 2018 came to almost $4.5 billion, or 7% of the company's overall revenues. The emergence of social media, rising Internet usage, and rising smartphone adoption have contributed to dependable access to various goods and assisted consumers in selecting the best home decor, including candles. Thus, this factor is driving the market CAGR.

Additionally, during the anticipated period, the market is anticipated to rise due to the rising trend of utilizing scented candles. These are expected to be used in both domestic and business settings. The scent is one of the main elements that affect its usage and purchase choices. Additionally, they are increasingly popular as go-to gifts and home décor accessories. The main reasons for using and buying candles are their pleasant aroma, which is also anticipated to improve house design and benefit one's mood.

Moose Tracks Ice Cream announced its partnership with Wax Poetic Candle Bar, a Michigan-based candle production company, in June 2021 to produce a distinctive candle with the perfect scent for ice cream lovers. At USD 24.95, the vanilla-scented candle lures the customer with undertones of peanut butter cups. It smells vanilla, similar to the ice cream flavor, with hints of peanut butter cups and the well-known Moose Tracks fudge.

The Global Candles Market Industry experiences a notable increase in demand for home fragrance products, driven by changing consumer preferences towards creating a pleasant ambiance. Candles are increasingly viewed as essential home decor items, contributing to their rising popularity. In 2024, the market is projected to reach 7.5 USD Billion, reflecting a growing trend among consumers who prioritize sensory experiences in their living spaces. This shift is further supported by the expansion of retail channels, including online platforms, which facilitate easier access to a diverse range of candle products. As a result, the Global Candles Market Industry is likely to witness sustained growth in the coming years.

By region, the study provides the market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific candles market accounted for USD 3.1 billion in 2021 and is expected to exhibit a 42.90% CAGR during the study period. This can be attributed to the growing use of candles and the luxury lifestyle in the region's developing economies, such as China and India. Compared to other regions, these nations have the highest populations and the lowest candle production costs.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  CANDLES MARKET SHARE BY REGION 2021 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

North American candles market is expected to grow at a substantial CAGR from 2024 to 2030. This can be attributed to the increased demand for candles, particularly during the region's festive seasons like Christmas or Ester. Additionally, it is projected that the practice of giving candles as gifts on special occasions, as well as the presence of well-known candle manufacturing enterprises and regular product releases, will promote the use of cyber insurance. Moreover, US candles market held the largest market share, and the Canada candles market was the fastest-growing market in this region.

European candles market accounts for the second-largest market share. With the assistance of nations like the United Kingdom, France, Germany, and the rest of Europe, this region contributes to the market's expansion. Europe is one of the strong economies in the world regarding trade. Since the European Union's founding, member nations' economies have grown in lockstep throughout Europe. Since the European economy's overall momentum in the  economy is stable, future years are expected to continue this worldwide boom.

Further, the Germany candles market held the largest market share, and the UK candles market was the fastest-growing market in the European region

Major market players are spending a lot on R&D to increase their product lines, which will help the candles industry grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, including new product launches, contractual agreements, mergers and acquisitions, increased investments, market developments and collaboration with other organizations. Competitors in the industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market industry.

Major market players are investing a lot in R&D to expand their product offerings, which would spur further growth in the candles industry. Additionally, market participants are launching new products, entering into contracts, acquiring companies, increasing investments, market developments, and collaborating with other organizations as part of a variety of strategic activities to expand their  presence. To grow and remain in a market that is becoming more competitive and growing, candles industry competitors must provide affordable products.

One of the primary business strategies manufacturers adopt in the  candles industry to benefit clients and expand the sector is manufacturing locally to reduce operating costs. In recent years, candles industry has provided medicine with some of the most significant benefits. The candles market major player such as Dianne's Custom Candles, Dandong Evenlight Candle Industry Co. Ltd., Empire Candle, ZHONG Nam Industrial (International) Co. Ltd, SC Johnson & Son Inc., BeCandle, Candle-lite, The Yankee Candle Company Inc., Colonial Candle, Armadilla Wax Works, Bath & Body Works Direct Inc and NEST Inc.

America's first candle manufacturer, Candle-lite Company, has been making candles in Ohio's heartland for more than 181 years with unmatched scent integrity that complies with the strictest industry regulations. In June 2021, the Kroger Family of Stores is the first retailer to distribute the CBD-infused candles and wax melts that the Candle-lite Company officially launched under their Essential Elements brand.

Also, a maker and reseller of scented candles, candleholders, accessories, and dinnerware in the United States is The Yankee Candle Company. In April 2020, a Newell Brands company called Yankee Candle had a partnership with Ordergroove, the industry pioneer in relationship commerce. As a result of their collaboration, the businesses offered customers a convenient subscription service for their preferred goods. Through the new approach, Yankee Candle was able to develop enduring relationships with clients that resulted in predictable, lucrative revenue during this historic period.