Candle Market Size, Share, Growth & Industry Trends [2031]

Report Description

Candle Market Outlook 2031

The global candle market size was USD 7.35 Bn in 2022 and is likely to reach USD 11.6 Bn by 2031, expanding at a CAGR of 5.2% during 2023–2031. The market growth is attributed to the increasing home décor to enhance the overall ambiance and the rising popularity of scented candles.

Growing spa and wellness industry is anticipated to significantly boost the candle market. Rising innovation in fragrances and materials leads to growing consumer interest in premium and luxury candles. For instance,

• In May 2021, Le Labo introduced a fresh addition to its candle collection with the launch of ENCENS 9, a home scent. This aromatic creation composed of resins and amber aims to create a sense of tranquility.

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A candle is a wax block with a wick placed inside. It has been employed in various religious ceremonies, celebrations, and gatherings to foster a warm ambiance and a calm setting. In recent times, the commercial applications of candles have registered a surge in spas and massage parlors, where scented candles are favored for a calming environment.

Additionally, candles are used in various industries beyond personal consumption, including hospitality such as hotels & restaurants, religious institutions, and for special occasions such as weddings and events.

The market report finds that the COVID-19 pandemic hampered the market. The pandemic disrupted the global supply chains and affected the supply of raw materials, which led to delays in the production and distribution of candles. Many physical retail stores, including those who sell candles, faced closures, due to lockdowns and social distancing measures.

During and post-pandemic, many individuals ignite candles for stress relief and relaxation. Aromatherapy candles, in particular, became popular, as they offered a way to create a calming atmosphere during a stressful time.

Candle Market Dynamics

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Major Drivers

Rising awareness about self-care and mental well-being is driving the market. Individuals are becoming aware of mental health, and are actively seeking products and services that contribute to their overall well-being. This includes items that provide relaxation, stress reduction, and a sense of calm, all of these qualities that are associated with candles. Ambient light and soothing fragrances of candles are effective tools in creating a peaceful environment.

Existing Restraints

Rising cost of raw materials hampers the candle market. An increase in the cost of wax, which is a fundamental raw material for candle production, directly raises the production costs for candle manufacturers. This includes the cost of the wax as well as the cost of processing, melting, and molding the wax into candles.

Emerging Opportunities

Increasing demand for natural and eco-friendly candles creates lucrative opportunities in the market. Consumers are becoming environmentally conscious and are seeking products that have a minimal impact on the environment.

Manufacturers are developing natural and eco-friendly candles, typically made from renewable resources such as soy wax and beeswax, to align with consumer preferences.

Additionally, innovative designs and shapes of the product are expected to create novel opportunities in the market. For instance,

• In May 2022, Natura-Tec launched a 100% upcycle wax base candle made of natural ingredients to support sustainable development. It is an alternative to paraffin wax and is available in tealights, pillars, votives, taper candles, and floating candles.

Scope of the Candle Market Report

The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Candle Market Segment Insights

Material Segment Analysis

Based on material, the candle market is divided into paraffin wax, bees wax, soy wax, and palm wax. The paraffin wax segment is expected to hold a dominant share of the market during the projection period, due to its growing accessibility and ease of production.

Paraffin wax is one of the most widely available and cost-effective candle-making materials. It is derived from petroleum, which makes it relatively inexpensive as compared to other wax types. This accessibility and affordability make paraffin wax a popular choice for candle manufacturers. Paraffin wax is easy to work with in the candle-making process. It has a low melting point, which allows for efficient and consistent production.

The beeswax segment is expected to expand at a significant growth rate in the coming years, due to the growing demand for eco-friendly products and non-toxic burning quality of beeswax. Beeswax is a natural substance produced by honeybees. Its extraction does not involve harsh chemicals or processes, which makes it an eco-friendly and sustainable choice for environmentally conscious consumers.

This aligns well with the increasing demand for eco-friendly and natural products. Beeswax candles burn cleanly without emitting harmful toxins. This results in clean indoor air quality and prevention of potential health hazards associated with paraffin-based candles.

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Product Segment Analysis

On the basis of product, the global market is segregated into tapers, votives, and pillars. The votive segment is projected to expand at a high CAGR during the forecast period, due to increasing consumer preference and rising decorative appeal. Votive candles are favored by consumers for their small size, slow-burning nature, and unique design. This makes them a popular choice for creating a calming atmosphere and spreading fragrance evenly.

Votive candles are versatile and are used in a variety of settings. They fit well in candle holders, lanterns, and other decorative arrangements. This versatility makes them a preferable choice for both daily use and special occasions, further boosting their popularity and market share.

The taper segment is anticipated to gain significant revenue shares in the market, due to the increasing consumer focus on aesthetic appearance. Taper candles are known for their elegant appearance. Their slender, elongated shape depicts a sense of sophistication and style. Taper candles hold a symbolic significance in various cultural, religious, and ceremonial contexts. They are used in rituals, ceremonies, and religious observances, further boosting their demand.

End-user Segment Analysis

On the basis of end-user, the candle market is segmented into household and commercial. The household segment is anticipated to register robust growth during the forecast period, due to the increasing demand for decorative elements and daily-use products. Candles are widely used as decorative items in homes.

They are available in various shapes, sizes, and designs that allow individuals to incorporate them into their interior décor. They serve as versatile decor pieces that enhance the aesthetic appeal of living spaces. Candles are a source of ambient light, especially during power outages, and are often lit for relaxation during baths & meals.

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Distribution Channel Segment Analysis

Based on distribution channel, the candle market is divided into offline and online. The offline segment is expected to generate a major revenue share of the market, due to changing consumer behavior and provision of in-person shopping experience.

Offline shopping has been a traditional method of purchases for a long time. Consumers prefer to see, touch, and smell the candles before purchasing to ensure the fragrance and quality. Offline shopping provides instant gratification, which leads to impulse purchases, further boosting the demand for offline channels.

The online segment is anticipated to hold significant revenue share of the candle market, due to the rising adoption of e-commerce platforms and convenience. The increasing digitalization and the prevalence of e-commerce platforms have majorly expanded the accessibility of online shopping. This has made it easy for consumers to browse a wide range of candle options, compare prices, read reviews, and make purchases at any time. This convenience eliminates the need to physically visit traditional offline retail stores.

Regional Outlook

In terms of region, the global candle market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, due to growing consumer demand for home decor and rising innovation in product development.

North America has a strong consumer affinity for home decor and ambiance-enhancing products. Candles play a significant role in creating a warm, inviting atmosphere, making them a popular choice for residential spaces. North America is recognized as a trendsetter in consumer preferences and product innovations. The region is developing specialized candles such as soy candles, beeswax candles, and eco-friendly options to cater to a wide consumer base.

The market in Asia Pacific is projected to grow rapidly during the forecast period, owing to the rising urbanization in the region and its cultural significance. Asia Pacific is undergoing rapid urbanization, with a substantial portion of the population moving to urban areas, leading to an increase in spending on home decor for enhancing the ambience.

Candles hold cultural significance in many countries in Asia Pacific. They are used in religious ceremonies, festivals, and various cultural traditions. This cultural importance ensures consistent demand for candles throughout the year. Additionally, the increasing number of establishments, such as hotels, restaurants, and spas, is further boosting the candle market. For instance,

• According to a report published by Meeting and Convention Asia, hotel construction within three cities of Asia Pacific is in the pipeline, with the unveiling of 71 new hotels and around 12,637 rooms in 2023.

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