The candle market - Brazil

A candle is a lighting object made up of a wick wrapped in wax that can have a decorative function by creating a light source, but also an olfactory function by diffusing a specific scent. Today, the candle market also includes electric and digital candles, alongside the traditional candles of yesteryear. However, there are also other types of candles, such as luminous candles, birthday candles and cartridge candles. After a significant drop in global sales in 2020, following supply problems related to the COVID-19 health crisis. The global candle market is expected to recover again in 2021 and 2022, with an average annual growth rate of 5.26% between 2023 and 2028. Consumers are increasingly buying candles to decorate their homes. The ease of purchase and the availability of different types of candles in multiple distribution channels encourage more and more people to buy them. Stores specializing in home decoration are facing growing competition from supermarkets, hypermarkets and e-commerce, which are positioning themselves in this segment and benefiting from lower prices and a varied offer that is attracting more and more shoppers. According to Future Market Insights (FMI), the scented candle market represents between 30% and 40% of the global market, reaching a value of US$ 3.6 billion by 2022. With an upward trend, sales are expected to reach US$ 5.4 billion by 2032. In Brazil, searches for scented candles on Google have increased by more than 100% in the last year, indicating that this product is gaining popularity and becoming a promising business opportunity. The Brazilian candle market has a variety of types, such as scented, decorative, religious and therapeutic candles. According to information from the Brazilian Association of Candle Industries (ABIV), in 2019, the sector had a turnover of around R$1.5 billion, before the pandemic. Candles are often used in religious ceremonies, wellness rituals and indoor decoration. The COVID-19 pandemic has significantly affected the candle market in Brazil. Restrictions on public and social events resulted in a temporary decrease in sales of candles for religious ceremonies and social events. However, there was an increase in demand for scented and therapeutic candles, as people sought comfort and relaxation at home during the lockdown. The pandemic has also brought about a number of changes in the habits of Brazilian consumers, with a growing trend in preference for candles with natural ingredients and therapeutic properties. This preference is motivated by the growing interest in products that provide physical and emotional well-being. Consequently, there is an increase in demand for candles produced with natural waxes and relaxing aromas.