The latest market report published by Credence Research, Inc. “Candles Market , By Type, distribution channel and Geography – Growth, Future Prospects and Competitive Analysis, 2017 – 2025,” the global candles market was valued at US$ 7,567.50 Mn in 2016, and is expected to each US$ 11,707.76 Mn by 2025, expanding at a CAGR of 5.5% from 2017 to 2025.
Consumers are increasingly purchasing candles for home decor and aromatherapy-like stress reduction and relaxation. The ease of purchasing as well as the variety of different types of candles on several distribution channels allows more and more people to purchase such items. Proliferation in the number of distribution channels has benefited from sales through department, mass merchandise retailers and home decor stores.
Supermarkets and hypermarkets benefit from their discounted prices and different promotions draw more and more customers in particular. The growth of e-commerce has significantly increased sales of candles. The ease of buying, as well as the accessibility of extensive information and feedback on products online, is causing more and more individuals to buy these goods.
Volatility in the cost of raw materials is the main factor hindering the development of the market. Paraffin is still the most commonly used base ingredient for the manufacture of candles. Meanwhile, almost 33% of the production of paraffin in some countries was shut down in 2014 and 2015, forcing candle manufacturers to import large volumes of base material at higher prices. Increased use of candles in various applications offers tremendous opportunities for the manufacturers present in this market.
The market is highly competitive due to the presence of a number of players. The barriers to entry into the candle industry are small. The tiny candle makers are getting up and taking their piece of pie. Most consumers choose to buy candles from the smaller handcrafted market due to the uniqueness, performance and ability to customize their orders.
- Rising demand from emerging economies
- The market is projected to benefit from growing demand for candles from various applications
- Availibity of the product in various shapes, colors, types and retail formats