Candles Market Size

Candles Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The world market for candles is undergoing a tremendous expansion, with the market expected to reach US$10 billion by 2030. The compound annual growth rate (CAGR) for the forecast period is 5.3%. The popularity of home decoration and the trend towards aromatherapy have increased the demand for candles across all age groups. Also, the increasing demand for eco-friendly and sustainable products has led to the development of candles made from natural waxes and organic fragrances. Consequently, leading candle manufacturers, such as Yankee Candle, Bath & Body Works, and Diptyque, are constantly developing new products to meet the evolving needs of consumers. Strategic initiatives, such as forming strategic alliances with lifestyle brands and investing in sustainable production, are also becoming more common. Moreover, some companies are launching limited-edition collections and seasonal fragrances to attract consumers, while others are increasing their online presence to take advantage of the growing e-commerce market. All these factors contribute to the market’s robust performance, indicating a promising future for the industry.

Regional Market Size

Regional Deep Dive

The Candles Market is a global market, driven by the growing demand for home decoration, health, and aromatherapy. In North America, the preference is for scented candles. In Europe, the preference is for a combination of modern and traditional designs. The Asia-Pacific region is experiencing an increase in demand for candles, owing to the changing lifestyles and rising disposable incomes. Middle East and Africa are experiencing growth in the market, owing to cultural practices and an increasing demand for luxury home fragrances. Latin America is a growing market, owing to the introduction of local flavors and artisanal products.

North America

• The trend for candles made of natural waxes and essential oils is a major one, and the likes of Yankee Candle and Bath and Body Works are launching their own versions.
• Product formulations are influenced by changes in labeling and safety standards. For example, the American Society for Testing and Materials (ASTM) has issued guidelines for the safe use of candles.
• The popularity of home fragrance products has prompted the collaboration between candle brands and lifestyle influencers, which has increased the brand’s visibility and consumer engagement.

Europe

• The European market is increasingly turning to artisanal and hand-made candles, with brands like Diptyque and Jo Malone leading the way in the luxury fragrances sector.
• A second reason is the increasing interest in the environment, with many companies using recycled paper for their boxes and sustainable waxes, influenced by the European Union's Green Deal.
• Christmas markets and cultural events such as the Vienna Christmas market have a significant influence on the candle market.

Asia-Pacific

• In the meantime, the market for decorative and perfumed candles has grown considerably. Miniso has tapped into this trend.
• The invention of candles, which are now controlled by a smart phone app, is gaining ground in some countries.
• The use of candles in religious rites is still a factor in the growth of the market, especially in countries where the custom is well established, such as Japan and India.

MEA

• In the United Arab Emirates, the luxury candle market is growing, and companies such as The White Company and Cire Trudon are setting up shop in prestigious shopping malls.
• A new cultural appreciation for home fragrances is increasing the demand for traditional Middle Eastern scents such as oud and rose, which are influencing the range of products.
• The Government's policy of encouraging the development of local crafts has resulted in the growth of a number of small candle-making establishments.

Latin America

• It is noteworthy that the production of candles, artisanal and local, has taken off. Small producers in Brazil and Mexico are making unique products, which reflect the local culture and perfumes.
• Brands like Natura are promoting their products as part of a healthy and balanced lifestyle.
• Economic factors such as the exchange rate influence both the prices and the purchasing behavior of consumers in the region.

Did You Know?

“By 2024, the world candle market is expected to exceed 12 billion dollars. Scented candles will make up a large part of this growth.” — Market Research Future

Segmental Market Size

The candles market is experiencing a steady growth, mainly due to the growing interest of consumers in the home ambience and in well-being. The growing trend for interior design, where candles play both an aesthetic and a practical role, and the growing interest in aromatherapy, which increases the appeal of scented candles, are the main growth drivers. Furthermore, the trend towards natural and eco-friendly products influences the consumers’ choice of candles. The preference for soy and beeswax candles is increasing.

The fragrance industry has already reached a mature stage, with the likes of Yankee Candle and Bath & Body Works leading the way in product innovation and marketing strategy. Product usage is mainly for home fragrance, relaxation and gift-giving, with seasonality dictating the range. The COVID-19 pandemic has also led to a boom in home-centred lifestyles, boosting candle sales. Changing the industry are new scent-delivery methods and sustainable production processes, which meet the growing demand for green products.

Future Outlook

The candles, in particular, are regarded as an indispensable element in the establishment of a peaceful atmosphere. There is also a great deal of interest in the natural and environment-friendly products that are gaining in popularity, such as candles made from soy wax or beeswax, which are regarded as healthier than the paraffin wax. Therefore, the market penetration of organic and artisanal candles will increase and thus the value of the market will increase.

In the same way, the candle market is projected to continue growing in the coming years, thanks to the introduction of new scent-diffusing methods and smart-candle technology. The benefits of such technological advances are twofold: they not only enhance the candle-lighting experience but also satisfy the growing demand for individualized and customizable products. The rise of e-commerce is also expected to further increase the convenience and availability of candles for consumers. Also, the growing popularity of scented candles and the integration of candles into a daily health routine are expected to have a major influence on consumer preferences and further drive the growth of the market. The candle market is thus expected to continue growing in the coming years, thanks to the changes in consumers’ lifestyles and the increased focus on sustainable practices.