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Summary of our market study
The global candle market, valued at approximately $10.08 billion in 2020, has been experiencing a growth trend, with expectations to expand at a compound annual growth rate (CAGR) of 6.3% from 2018 to 2026, according to Zion Market Research. The Asia Pacific region is predicted to be the fastest-growing market, potentially growing at a CAGR of 6.4% during the same period, largely due to prevalent festival celebrations such as Diwali. In contrast, the US market, representing a significant segment, was valued at $3.54 billion in 2019 with projections to reach $6.64 billion by 2027, growing at a CAGR of 8.18%.
The US candle industry encounters cyclical sales with about 35% occurring during Christmas/holidays, driven primarily by demand for fragranced candles. Distribution through e-commerce has been particularly influential on market growth. The candle market encounters shifts towards increased home decoration and relaxation uses, but the COVID-19 pandemic has had a mixed impact, initially spurring demand due to consumers seeking a cozy home atmosphere but later encountering challenges with scent detection among those with the virus. Regulations and standards such as 16 CFR Part 1500.17 address product safety, focusing on substance restrictions and labeling requirements for metal-cored wicks.
Trends and Dynamics in the Candle Market
The candle market in the United States reflects a blend of traditional demands and modern consumer preferences. Candles, once a mere source of light, have found renewed interest as versatile items serving decoration, aromatherapy, and air freshening purposes. This can largely be attributed to a shift in lifestyles and increased disposable incomes, making room for consumers to indulge in luxury candles with various shapes and exotic aromas. Birthdays follow suit as another significant segment, owing to their integral role in celebrations. Not to be overlooked are special occasions like Diwali and Hanukkah, amplified by the growing Asian Indian and Jewish populations, respectively, which considerably contribute to the demand for traditional and ceremonial candles. In terms of market preferences, consumers lean heavily towards scented candles, with fragrance recognized as the crucial selling point. Four out of ten candle users place them in living rooms, highlighting a trend towards creating a cozy ambiance in common areas. Moreover, nearly one-fifth utilize candles to enhance outdoor settings, revealing a versatile use beyond the indoors.
E-commerce has emerged as a formidable force, exacerbating the decline of physical specialty, gift, and department stores. Digital sales of home goods, which include decorative and scented candles, saw a substantial 10% year-on-year increase, reaching the territory between 85 and 90 billion dollars. On the production front, technological advancements have shaped the industry landscape. Methods such as immersion, molding, extrusion, and filling are employed, varying with the type of candles—ranging from the intricately scented to the simply decorative, and the materials utilized, such as soy wax, paraffin, and beeswax. Amidst growth and transformation, the candle market is not without its challenges. The Covid-19 pandemic served as a double-edged sword by increasing homely candle usage, while simultaneously impacting consumers' olfactory senses, crucial for the scented candle market. Nonetheless, manufacturers and retailers adapt, signified by a sprawling landscape of candle-making businesses. In regulatory terms, the US market is bound by safety and quality standards. Lead content limits and compliance with ASTM standards are definitive for market entry. Pricing in this market is diverse and has room to accommodate all—from the thriftiest at approximately two dollars for a votive to the premium end reaching about two hundred dollars and beyond for designer candles.
Illuminating the Market: Spotlight on Major Candle Industry Contenders
The candle market is a vibrant space with a host of notable players, each contributing its unique scents, designs, and innovations to appeal to a diverse consumer base. Among these key participants are California Exotic Novelties, PandG (Procter & Gamble), LELO, Reckitt Benckiser, Gellite Gel Candles, Himalayan Trading Post, Bath and Body Works, and TATINE. These companies exemplify the dynamics within the candle industry, from the craft of traditional wax candles to the modern allure of electric spark plugs.
- California Exotic Novelties stands apart as an interesting player in the market, diversifying into candles used not just for lighting or aromatic therapy but as part of a wider range of lifestyle products that embellish living spaces and inspire personal experiences.
- Procter & Gamble, widely recognized for its extensive range of household products, has ventured into the candle segment under its well-established brand banners. The company's entry into the candle market exemplifies its adaptive strategy to meet the ever-evolving preferences of consumers seeking both comfort and luxury in their homes.
- LELO is a unique entrant, primarily known for being a leading brand in the personal and intimate wellness industry. Their foray into the sensory delights of candles showcases an expansion into creating a holistic ambiance that complements their core product offerings.
- Reckitt Benckiser is no stranger to the home care segment, and their presence in the candle market underscores their commitment to providing consumers with products that are essential for creating a fresh and inviting atmosphere in the home.
- Gellite Gel Candles introduces an innovative twist to the traditional candle concept with its gel-based candles. Their products offer a distinctive aesthetic appeal and burn behavior that positions them favorably among consumers looking for something a cut above the typical wax candle.
- Himalayan Trading Post crafts candles that are as exotic as the company's name suggests. Known for their use of traditional craftsmanship techniques, they produce candles that double as decorative art pieces with rich scents that speak to a niche market of candle aficionados.
- Bath and Body Works is a titan in the world of home fragrances and body care. Their range of scented candles is a testament to the brand's deep understanding of creating olfactory experiences that captivate the senses and transform the ambiance of spaces.
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Summary and extracts
1 Market overview
1.1 Definition and presentation
The candle is a light fixture composed of a wick wrapped in wax which is intended to decorate accomodation by generating a light source or to deodorize a room. The market can be segmented by candle type: besides traditional candles, the candle market is witnessing the emergence of electric spark plugs. However, there are other types of candles such as tea lights, birthday candles, cartridge candles, etc. The market can also be segmented depending on the raw material used to form the base of the candle: beeswax, stearin, paraffin wax, canola wax, palm wax, etc.
Consumers are buying more and more candles for home decoration, stress reduction and relaxation through aromatherapy. Moreover, the increasing disposable incomes and changing lifestyles of consumers have enabled them to spend more money on candles with better shapes and exotic aroma, which is also boosting this global market. [globenewswire]
The US candle market has contracted over the last years due to external competition which has pressured prices. Candle sales in the US are highly cyclical; 35% of sales occur during Christmas/holidays. [candles] Moreover, fragrance remains the most important attribute for US consumers.
The distribution of candles occur in specialized decoration stores which are seeing the growth of supermarkets and hypermarkets, which are benefiting from reduced prices and varied offers that are attracting more and more buyers, while the e-commerce has also contributed to the increase in candle sales. The market is fragmented, and include players such as California Exotic Novelties, PandG, LELO, Reckitt Benckiser, Gellite Gel Candles, Himalayan Trading Post, Bath and Body Works and TATINE.
1.2 Global market
According to a study conducted by Zion Market Research, the global candle market was valued at US$ **.** billion in ****. It is expected to grow at a CAGR of *.*% between **** and ****.
Candles Market Size World, ****-****, US$ billion Source: ****
The fastest growing market during the period is expected to be Asia, which is estimated to grow at a CAGR of *.*% between **** and ****, owing to the large number of festivals celebrated there during the year. For instance, Diwali is a celebration of the arrival of light. According to the study, the European market, which is the largest market in terms of value, is expected to grow at a CAGR of around *% between **** and ****.
The major players in this market are Yankee Candle and The White Company.
1.3 The US market
In ****, the candle industry was valued at $*.** billion and was projected to grow to $*.** billion by ****, with a CAGR of *.**%. With various candles available on the market, from major suppliers to independent creators, candle market trends have shown no signs of slowing down.
Candle market value USA, ****-****, billlions of dollars Source: ****
Nearly eight out of every ** U.S. households purchase air care products, such as air fresheners, potpourri, sachets and candles, hese last ones are the second most appreciated type of air freshener in the USA.
Dollar sales of home care fragrances in the United States in ****, by product type USA, ****, million os dollars Source: ****
Americans are more likely to buy candels from private lables, followed by candles made by the brand SC Johnson & Sons, The Yankee Candles, Newell Brands and Empire Candle Co.
Leading scented candles manufacturers in the United States in ****, based on sales USA, ****, Millions of dollars Source: ****
1.4 Import and Export
The data regarding the imports and exports of candles in the USA are taken from the UN Comtrade website, using the HS Code ****** "Candles, tapers and the like".
The imports of candles are growing by in * years, from a value of *** millions to over a billion value worth. On the contrary, the exports are not increasing, and they have been around the value of *** million of dollars. As the ratio between export and import, called coverage ratio, is lower than one, it means that the USA are not independent regarding the production of candles.
Import and exports of candles USA, ****-****, millions of dollars Source: ****
Regarding the imports, in ****, the country the USA have imported more candles from was Vietnam, followed by Canada, China and India. Vietnam represents the **.*% of the total imports, Canada **.*% , and China the *.*%.
Countries USA imports most candles USA, ****, percentage Source: ****
Regarding the exports, in ****, the country where the USA have exported more candles from was Canada, followed by UK, The Netherlands and South Korea. Canada represents the **.*% of the total imports, the UK the **.*% , and The Netherlands the *.*%.
Countries USA exports candles USa, ****, percentage Source: ****
1.5 Covid impact
The pandemic caused a double effect on the candle market.
On one side, as people were forced to stay home, the pandemic had a positive impact on the sector. Americans wanted to create a more cozy atmosphere at home due to the long time spent there. Candles have become especially popular over the past six months, as consumers try to create a cozy home atmosphere during COVID-**-imposed stay at home orders. Candlemakers say that millennials are increasingly buying the products and retailers are adding new varieties and product offerings to match spiking demand, which has led manufacturers to increase their production [***].
In the first week of stay-at-home orders in the United States, luxury consignment retailer The RealReal saw a **% week-over-week uptick in sales of home items. From March to June **** , retail website Moda Operandi has seen a **% increase in the quantity of homeware items sold. Spending more time indoors this spring led shoppers to reconsider their home decor, and embrace the inclination toward “nesting,” the desire to rearrange one’s surroundings to increase comfort, cleanliness, or pleasurable aesthetics [***].
On the other side the pandemic brought a new problem for the market: the scent.m
The National Candle Association also notes ...
2 Demand Analysis
2.1 Occasion
There are different kinds of candles that are used in different situations. Despite the lack of statistical data, it is possible to draw up a typology of supply according to these different demands
The supply is thus segmented into candles used for birthdays, candles intended as gifts, candles whose main function is lighting and finally candles whose main function is the diffusion of a pleasant smell (***). These four segments can sometimes merge and thus provide the market with a wide range of candles.
Birthdays
Birthday candles (***) represent an important part of the demand for candles, as they are commonly used for birthday celebrations with a cake.
According to The Center of Diseases and Prevention July and October tends to be the most popular birth months in the US, so birthday candles are more likely to be bought during these months.
Gifts
Some candles stand out for their quality, appearance and durability. The aesthetic appeal of the candle makes it a simple and ideal gift for all kinds of occasions. According to the NCA (***).
Occasion for candles as gift USA; ****, Percentage Source: ****
Demand for candles is particularly high around the holidays, as shown in the graph below, which represents interest in the ...
2.2 Special celebration
DIWALI
Also called the Festival of Lights, Diwali is Hinduism’s biggest holiday, drawing in huge crowds of happy revelers every fall. It is the celebration of the triumph of light over darkness and of good over evil. On the third night of the five-day celebration, participants dress to the nines and light up their homes with oil lamps and candles, offering up worship to the goddess Lakshmi. The holiday creates joy and a sense of community to participants around the globe.
According to the **** United States Census,the Asian Indian population in the United States grew from almost *,***,*** in **** (***), a growth rate of ***%, one of the fastest growing ethnic groups in the United States.
Historical population in the US of indian discendens USA, ****-****, units Source: ****
In between them the **% is Hindu,followed by **% Christian and **%. That means that there are around around *.* million people who celebrate Dwali in the U.S.A.
Religion of Indian-Americans USA, ****, percentage Source: ****
HANUKKAH
When it comes to traditions that use candles, few are as exemplary as Hanukkah. Like Diwali, Hanukkah is also known at the Festival of Lights in the Jewish tradition. A central figure during Hanukkah is the menorah. This beautiful ...
2.3 Consumer preferences
According to the National Candle Association (***), Americans the most popular types of candles are container and jar candles and they are mainly bought by women, **% of the custumers.
Candle industry research indicates that the most important factors affecting candle sales are scent, color, cost and shape. Fragrance is by far the most important characteristic impacting candle purchases today, with **% of candle buyers saying it is “extremely important” or “very important” in their selection of a candle. It is estimated that more than **,*** different candle scents are available to U.S. consumers.
Consumers are increasingly purchasing candles as a focal point for their home décor, and for aromatherapy-like relaxation and stress reduction, approximately one in five women say they use candles to decorate the yard, patio or other exterior areas, as well as the interior of their home. Candle users say they most frequently burn candles in the living room (***).
Where Americans place their candles USA, ****, percentage Source: ****
The majority of U.S. consumers use their candles within a week of purchase. Nine out of ten candle users say they use candles to make a room feel comfortable or cozy. Approximately three-fourths of candle users say they typically burn candles ...
3 Market structure
3.1 Production chain
Candles are all composed of the same raw materials, in different proportions (***) make it possible to give the melting candle a pleasant odor. These must have a flash point higher than ** degrees.
3.2 Candle manufacturing
There are **** candles candle Manufacturing Businesses in the US in ****, this number has increased by *.*% between **** and **** but it has decreased by -*.*% from **** and -**.*% from ****.
Number of candles manufacturing USA, ****-****, units Source: ****
California (***) are the States with the most number of Candle Manufacturing businesses in the US.
States with the most candles business USA, ****, units Source: ****
The Candle Manufacturing industry in the US is labor intensive which means businesses are more reliant on labor than capital. The highest costs for business in The Candle Manufacturing industry in the US as a percentage of revenue are Wages (***).
Costs for the business USA, ****, Percentage Source: ****
3.3 Distribution
Candles are distributed mainly :
Speciality or gift shops Department and home décor stores; mass merchandisers (***)
The number of gift shops in the U.S. has been decreased since ****, going from ***** stores to ***** in ****, - **.*%. The stores are located mainly in California (***).
Number of Gift Shops & Card Stores in the US USA, ****-****, units Source: ****
Also the number of department store is decreasing going from **** stores in **** to **** in ****, - **.*%, and projected to **** in ****
Number of department stores in the U.S.A. USA, ****-****, units Source: ****
The decrease of the stores can be explained by the growth of the e-commerce market in the last years. According to DigitalCommerce the online U.S. home goods sales increased **.*% year over year to reach $**.** billion in ****, compared with $**.** billion in ****.
Value of home decor e-commerce USA, ****-****, billions of dollars Source: ****
4 Analysis of the offer
4.1 Types of candles and techniques
There are two main families of candles.
First of all, scented candles allow to introduce a subdued atmosphere in a space while giving it a particular smell. They are often broken down into three levels. The surface level is composed of the first aromas to be felt when the candle is lit. The central part of the candle serves as the heart while the lowest level is composed of more dominant notes that develop over a longer period of time.
There is also a distinction to be made within this class between mood candles and massage candles (***).
The second type of candles is simply used for decoration. These candles come in a wide variety of shapes:
Pillar candles (***) Taper dinner candles (***) Votive candles (***) Tea lights (***)
The following materials are used for candle design:
Soy wax is obtained from soybeans. It is therefore natural, renewable and biodegradable. Paraffin wax produces more soot than other types of candles and is therefore used less in high-end candles. Beeswax has an odor close to honey and produces a particular luminous radiation when lit. It also has a higher melting temperature than other waxes and therefore drips less. It is also a preferable option for consumers ...
4.2 Prices
The price of candles depends on multiple factors such as their function, if they smell or not, if they are for decor with particular shapes or just for lighting use, if they are from a famous brand, if they are industrial or artesanal made etc...
According to the National Candles Association the retail price of a candle generally ranges from approximately $*.** for a votive to $** for a large pillar or jar candle. Impactfully scented candles in exceptionally beautiful containers and elaborate boxes can be $*** or more.
To get an idea of the prices, the following are taken from Amazon USA:
5 Regulations
5.1 Regulation
There are multiple rules to follow for the production of candles in the USA:
** CFR Part ****.** – Banned Hazardous Substances
The Federal Hazardous Substances Act (***) lists candles made with metal-cored wicks, and metal-cored candlewicks, as two of the products might be banned due to them having a component that is considered too dangerous for a cautionary label to be sufficient.
As such, to protect the general public, the FHSA bans both products from the US market unless they do not exceed the maximum allowable lead limit.
Substance restrictions
The FHSA allows the sale of metal-cored candlewicks and candles made with metal-cored wicks, only if the lead content in the metal core of the wick of both products conforms to substance restrictions by not exceeding *.**% of the total weight of the metal core.
Labeling requirements
The FHSA requires both products mentioned above to be shipped in an outer container or a wrapper, which should carry a label that bears the following statement:
“Conforms to ** CFR ****.**(***).”
General Certificate of Conformity (***)
Importers and manufacturers of candles that fall under the scope of ** CFR Part ****.** must issue a General Certificate of Conformity (***).
Content Summary
*. Product name and description
*. Applicable CPSC regulations and ...
6 Positioning of the players
6.1 Segmentation
- Target
- Walmart
- Yankee Candles
- Boy Smells
- Jo Malone
- Newbell Brands
- SC Johnson & Sons
- Empire Candle & Co
- The White Company
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