"Increase adoption for home decor will spur the market revenue growth"
The global candles market accounted for US$ 9,816.6 Mn in 2020 and is anticipated to grow to US$ 15,181.14 Mn growing at a CAGR of 5.5% throughout the forecast period from 2023 to 2030.
Consumers are increasingly purchasing candles for their home decor, and for aromatherapy-like stress reduction and relaxation. The ease of purchase as well as the availability of various type of candles on multiple distribution channels is prompting more and more people to purchase these products. Proliferation in the number of distribution channels has benefited the sales through department, mass merchandise retailers and home decor stores. Supermarkets and hypermarkets are benefiting due to their discounted prices and various offers particularly attracting more and more buyers. The popularity of e-commerce has significantly increased candles sales. The ease of purchase as well as the availability of extensive information and reviews on products online is prompting more and more individuals to buy these products.
Volatility in the prices of raw materials is the major factor hampering the market growth. Paraffin is still the most widely used base material for candle production. Meanwhile in 2014 and 2015, almost 33% of paraffin production in some countries was shut down; forcing candle manufacturers to import large volumes of base material at higher prices. Increasing usage of candles in various applications provide immense opportunities to the manufacturers present in this market.
"Votive candle segment to dominate the market during the forecast period"
On the basis of types, the global candles market is segmented into pillar candles, floating candles, votive candles, taper candles, filled candles, tealight candles, gel candles, specialty candles, liquid candles and others. In 2020, votive candles accounted for the largest share of the global candles market. It accounted for 22.2% revenue share in the global candles market, followed by pillar candles and tapers with 17.2% and 11.9% market share respectively. Votive candles are also known as prayer candles and are the most common candle type used across all settings. These candles are often viewed to be eco-friendly as they do not emit harmful gases like conventional synthetic products. The demand for scented candles in all forms is the highest than the unscented types. Additionally, over 70% of candle purchases are made by women. Being a focal point of home décor, the demand for specialty candles, gel candles and similar products is gaining momentum.
Candle gifting is becoming a vogue trend, leading to rise in demand for specialty candles. Product innovation, safety and ease of use has led to emergence of liquid candles as a major product type in the global candles market. Of all the considered types, votive candles holds the largest market share in 2020. Tealight candles segment is anticipated to record the highest CAGR during the forecast period of 2023 to 2030.
"Mass Merchandise retailer segment to dominate the market during the forecast period"
On the basis of distribution channel, the global candles market is segmented into specialty or gift shops, department or home decor stores, mass merchandise retailers (discount stores, drug store chains, etc.), direct sales, internet and others (small scale retailers). In 2020, mass merchandise retailers accounted for the largest share of the global candles market. It accounted for 40% revenue share in the global candles market, followed by department or home decor stores and specialty or gift shops.
In 2020, mass merchandise retailers dominated the market in terms of revenue contribution followed by department or home decor stores, and both the channels are projected to remain dominant over the next six years. Some companies such as Yankee Candles, and VILA HERMANOS CERERÍA SA etc. have established their own concept stores for direct sale of their products. This channel accounted for approx. 11.93% of the global market share in 2020.
"Rising foreign investments to bolster the growth in Asia Pacific region"
In 2020, North America was observed as the largest market followed by Europe both these region are projected to maintain their market position over the coming six years. Candle sales is fueled by rise in consumer interest in aromatherapy and increased demand for home fragrance products. In 2020, North America and Europe together accounted for more than 60.00% share of the global candles market. In both these regions, candles are consider as decorative accessories rather than purely functional items. The U.S. is the largest regional market for candles. Every year, in the U.S. approximately, more one billion pounds of wax are used in producing the candles. The sale of candles is fueled by growing consumer interest in aromatherapy and rise in demand for home fragrance products. The candles market in Europe is an interesting market, in which imports and consumption are increasing continuously, providing immense opportunities to exporters from developing countries.
Asia Pacific will witness swift revenue growth over the forecast period of 2023 to 2030, as a result of changing lifestyle, availability of the product, and rise in consumption of decorative items. India, China, Australia and Japan are the most attractive market for candles and provide immense market potential. Availability of variety of scented and colored candles along with rise in disposable income is the major factor driving the market growth in these countries.
List of Companies Covered:
Key Industry Development:
Historical & Forecast Period
This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.
The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.
Research Methodology
The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Candles market are as follows:
Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.
| ATTRIBUTE | DETAILS |
|---|---|
| Research Period | 2022-2032 |
| Base Year | 2023 |
| Forecast Period | 2024-2032 |
| Historical Year | 2022 |
| Unit | USD Million |
| Segmentation | |
Type
| |
Distribution Channel
| |
|
Region Segment (2022-2032; US$ Million)
|
Key questions answered in this report
