US Candle Market 2024–2033

Reports Description

As per the current market research conducted by the CMI Team, the US Candle Market is expected to record a CAGR of 3.91% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 3.68 Billion. By 2033, the valuation is anticipated to reach USD 5.20 Billion.

Usage of Candle in the US

Source: According to Waxmelters Business and Industry Facts

The U.S. candle market is diverse, with over 400 manufacturers and small craft producers. Over the past decade, sales have grown by 10 to 15% annually, driven by aromatherapy and home fragrance products. Candles are a staple in 7 out of 10 U.S. households, with over 95% of purchasers being women—factors like scent, color, cost, and shape influence buying decisions.

Candles are used for various purposes, including creating a cozy atmosphere and aromatherapy. The price range varies, with some artisanal creations fetching over US$ 200. The frequent use of candles highlights their role in modern American lifestyle and culture.

US Candle Market – Significant Growth Factors

The Candle Market presents significant growth opportunities due to several factors:

• Increasing demand for home decor and ambiance: Candles are a popular home decor item due to contemporary interior design trends, enhancing the ambiance of various styles like minimalism, hygge, and rustic chic. Their versatility and warmth contribute to market growth, making them a key factor in home decor.

• Rising interest in aromatherapy and wellness: The U.S. is seeing a surge in the demand for candles due to the growing mental health awareness. Consumers are turning to aromatherapy candles for their perceived benefits in relaxation and emotional well-being, aligning with the broader wellness movement, which emphasizes a holistic approach to health.

• Shift towards eco-friendly and sustainable products: The candle market is experiencing a surge in preference for natural, renewable resources like soy, beeswax, and coconut wax, driven by consumer demand for sustainability and health concerns. Sustainable packaging, like recyclable or reusable containers, is also playing a crucial role in purchasing decisions.

• Higher seasonal and festive demand of candles: Seasonal and themed candles surge during holidays, catering to home decor desires. Special edition collections create urgency and exclusivity, driving higher sales during peak seasons.

• Growing popularity of artistically designed candles: Consumers value functional and aesthetically pleasing products, with candles becoming a perfect medium for artistic expression. These artisanal candles, with their unique designs and intricate details, enhance home decor beyond just light or scent.

• Expansion of online retail channels: The opportunity to innovate and diversify product offerings with new coffee varieties, flavors, and formats, as well as to explore alternative brewing methods, specialty drinks, and coffee-related products to cater to evolving consumer tastes and preferences.

US Candle Market – Mergers and Acquisitions

The Candle Market has seen several mergers and acquisitions in recent years, with companies seeking to expand their market presence and leverage synergies to improve their product offerings and profitability. Some notable examples of mergers and acquisitions in the Candle Market include:

• In June 2024, Grace Management the parent company of Bridgewater Candle Company acquired Audrey’s, a 40-year-old designer and distributor of home accent products. The company will continue operating as a standalone entity, with its headquarters in Lebanon, Pennsylvania, and a separate sales team and showroom at AmericasMart Atlanta. Audrey’s founder, Audrey Mull, expressed gratitude for the acquisition and the company’s future stewardship.

• In April 2023, Grace Management Group acquired Audrey’s, a 40-year-old designer and distributor of home accent products. The company will continue operating as a standalone entity, with its headquarters in Lebanon, Pennsylvania, and a separate sales team and showroom at AmericasMart Atlanta. Audrey’s founder, Audrey Mull, expressed gratitude for the acquisition and the company’s future stewardship.

• In April 2022, Phoenix Flavors and Fragrances acquired Atlanta-based Innovative Fragrances Inc., allowing it to expand its presence in the Southeast US and enhance its perfumery, regulatory compliance, and technical solutions capabilities. President Jim Unrath emphasized the complementary nature of the two companies and their shared values. Phoenix Flavors and Fragrances remains committed to executing its organic growth plan.

COMPARATIVE ANALYSIS OF THE RELATED MARKET

US Candle Market – Significant Threats

The US candle market faces several significant threats that could impact its growth and profitability in the future. Some of these threats include:

• Increased Raw Material Cost: The U.S. candle market is significantly impacted by the fluctuating costs of raw materials like paraffin wax, soy wax, beeswax, and essential oils, which can lead to instability in pricing, decreased profitability, and increased costs.

• Environmental and Health Concerns: The U.S. candle market is being restrained due to environmental and health concerns. Harmful chemicals in candles, such as lead and paraffin wax, and the production of soot. can deter health-conscious consumers. As awareness grows, consumers may shift towards safer, more environmentally friendly alternatives.

• Competition from Alternative Products: The rise of alternative home fragrance products like essential oil diffusers and reed diffusers is challenging the traditional candle market. These products offer consistent fragrance release and safety, appealing to a wider market. Flameless LED candles, particularly for children or pets, further reduce traditional candle market share, necessitating industry innovation.

• High Sustainability Challenges: The candle market faces sustainability challenges due to the difficulty and cost of sourcing materials like soy, beeswax, and palm oil, and the environmental impact of production processes and packaging. Consumers demand transparency and proof of eco-friendly practices, which requires substantial investment and commitment from manufacturers.

• Seasonal Demand for Candles: The U.S. candle market experiences seasonal demand, causing sales fluctuations and requiring consistent production, inventory management, logistics, and marketing strategies. Retailers must allocate shelf space during peak seasons, while external factors can disrupt spending patterns and strain research and development resources.

Category-Wise Insights:

By Product Type

• Votive Candles: Votive candles are small, cylindrical candles typically placed in a holder. They are popular for their versatility and affordability, often used in religious ceremonies, home decor, and aromatherapy. The demand for votive candles is increasing due to their compact size, which makes them ideal for creating ambience in small spaces. Additionally, their affordability allows consumers to purchase multiple candles for various settings and occasions, driving their popularity.

• Pillar Candles: Pillar candles are larger, free-standing candles known for their long burn times and aesthetic appeal. These candles are often used as statement pieces in home decor, particularly in settings that require a more substantial presence. The growing interest in home decor and interior design trends has boosted the demand for pillar candles, as they are seen as both functional and decorative items. Their ability to burn for extended periods makes them ideal for events and gatherings, further driving their popularity.

• Container Candles: Container candles are candles that are poured into glass jars or metal tins. They are among the most popular candle types due to their safety, as the container prevents the wax from spilling. The demand for container candles is increasing because they often come with lids that preserve the fragrance and enhance the longevity of the candle. Additionally, the variety of designs and fragrances available makes them a favorite for gift-giving and personal use. Their convenience and aesthetic versatility contribute significantly to their rising popularity.

• Taper Candles: Taper candles are long, slender candles typically used in candle holders. They are commonly associated with formal dining settings, religious ceremonies, and special events. The demand for taper candles is increasing due to their classic and elegant appearance, which adds a touch of sophistication to any setting. As more consumers host dinner parties and events at home, the use of taper candles has grown, driven by the desire to create a refined and stylish atmosphere.

• Specialty Candles: Specialty candles include a wide range of uniquely designed candles, such as sculpted candles, novelty shapes, and candles with embedded decorations. The demand for specialty candles is increasing as consumers seek unique and personalized items for their homes and as gifts. These candles often serve as conversation pieces and are favored for their artistic and decorative value. The growing trend of customization and artisanal products has also boosted the popularity of specialty candles.

• Others: Other candles, such as floating candles, are used for specific decorative purposes. Floating candles are particularly popular for events such as weddings and outdoor parties, where they are used to create a magical ambiance in water features like pools and fountains. The demand for floating candles and other unique candle types is increasing as consumers look for innovative ways to enhance their home decor and event settings. These candles offer a creative and visually appealing solution for various decorative needs.

By Fragrance Type

Scented Candles: Scented candles dominate the market, offering a wide array of fragrances that cater to diverse consumer preferences. The demand for scented candles is rising due to their ability to enhance mood, create ambiance, and provide aromatherapy benefits. Different fragrance types within the scented candles segment appeal to various consumer tastes and needs.

• Floral: Floral scented candles, infused with scents like rose, lavender, jasmine, and peony, are popular for their soothing and inviting properties, attracting consumers seeking a natural, calming atmosphere.

• Woody: Woody scented candles, infused with earthy scents like sandalwood, cedar, pine, and oak, are gaining popularity due to their comforting, grounding qualities, and their ability to enhance living spaces.

• Sweet & Spicy: Sweet & spicy scented candles, popular during fall and winter, evoke nostalgic and comforting feelings, making them ideal for creating a cozy atmosphere, with their rich, indulgent, and warm qualities attracting consumers.

• Others: Other scented candles include mixed blend candles that combine fragrance notes for unique, sophisticated aromas, appealing to consumers seeking complex, personalized scents. Demand is increasing as consumers become more experimental and sophisticated.

Non-scented Candles: Non-scented candles offer a unique ambiance and aesthetic without the scent, making them ideal for those with sensitivities or allergies to strong scents. They are suitable for various settings, from simple lighting to ceremonial purposes, and their appeal lies in providing visual and atmospheric benefits without affecting air quality or overpowering other elements.

By Wax Type

• Paraffin: Paraffin wax, derived from petroleum, is the most popular wax in candle production due to its affordability and versatility. It offers excellent fragrance-holding capacity and can produce candles in various colors and finishes. Despite concerns about environmental impact and health risks, its widespread availability and lower cost continue to drive its popularity in the market.

• Beeswax: Beeswax candles are renowned for their natural, clean-burning properties, long burn times, and honey-like fragrance. As a renewable resource, they are increasingly sought after by eco-conscious consumers. Despite concerns about environmental impact and health risks associated with paraffin burning, their widespread availability and lower cost continue to drive their popularity in the market.

• Stearin: Stearin wax, derived from animal fats or palm oil, is used to enhance the hardness and opacity of candles, making them more durable and attractive. It also improves burn quality and longevity, leading to increased demand for stearin candles. However, concerns about animal-derived stearin and sustainability issues impact vegan consumers.

• Soy Wax: Soy wax, a biodegradable, renewable, and cleaner alternative to paraffin, is gaining popularity as a natural and eco-friendly alternative to traditional candles. Its popularity is driven by consumer demand for sustainable, non-toxic products and its role in supporting the agricultural economy as a byproduct of soybean farming.

• Others: Another type of wax used for the production of candles includes, plam wax. Palm wax, derived from palm oil, is a popular wax used in candle production for its unique crystalline or feathered patterns. It is used in specialty and decorative candles, but sustainability concerns like deforestation and habitat destruction affect consumer choices. Other waxes include coconut wax, gel wax, and blends, catering to niche markets.

By Category

• Natural: Natural candles, made from natural waxes like beeswax, soy wax, and palm wax, are marketed as eco-friendly, sustainable, and healthier alternatives to synthetic candles. The demand for natural candles is increasing due to consumer awareness of environmental issues and a preference for safer, more sustainable products. These candles promise cleaner burns with fewer pollutants.

• Synthetic: Synthetic candles, made from paraffin wax by petroleum refining, are popular due to their affordability, wide availability, and variety of colors and scents. The demand for these candles is increasing due to their cost-effectiveness and versatility, making them popular among consumers who value scent strength and diversity.

By End Use

Residential: The residential segment dominates the U.S. candle market, driven by home decor trends, aromatherapy, special occasions, and seasonal demand. Candles are popular for ambiance, aromatherapy, and wellness, with scented candles promoting relaxation and stress relief.

Commercial: Candles are increasingly used in commercial settings like restaurants, hotels, spas, and retail stores to enhance customer experience, create a cozy atmosphere, enhance aromatherapy in spas and wellness centers, enhance visual merchandising in retail stores, and create elegant events.

• Beauty & Spa Centers: Beauty and spa centers utilize candles for a serene atmosphere, with aromatherapy candles being a popular choice due to their therapeutic benefits.

• Medication Centers: Medication centers are incorporating candles to create a comforting, less sterile atmosphere, reducing stress and anxiety among patients, and highlighting the growing importance of a healing environment.

• Hospitality: Candles are widely used in the hospitality industry to enhance ambiance and guest experience, with increasing demand for premium, memorable experiences.

• Others: Other than the usual commercial places, candles are utilized in various commercial settings, including retail stores, event planners, and religious institutions, for visual merchandising, elegant settings, and ceremonial rituals.

By Distribution Channel

• Online: Online candle distribution channels like e-commerce platforms, company websites, and marketplaces like Amazon and Etsy have grown due to convenience, accessibility, a broader selection, subscription services, influencer marketing, and the COVID-19 pandemic’s impact on consumer preference for safe, contactless shopping.

• Offline: Offline distribution channels for candles, including specialty shops, home decor stores, department stores, and supermarkets, drive strong demand due to sensory experience, immediate gratification, attractive displays, personalized customer service, and local community support, which enhance the shopping experience and drive foot traffic to brick-and-mortar stores.

Report Scope

Competitive Landscape – US Candle Market

The US Candle Market is highly competitive, with a large number of manufacturers operating in the US. Some of the key players in the market include:

• Bridgewater Candle Company
• Circle E Candles
• Colonial Candle
• Ellos Brooklyn
• MALIN+GOETZ
• Spark Candles
• Stone Candles
• The Yankee Candle Company Inc.
• Paramold Manufacturing LLC
• F. Candle Company
• Voluspa Candles
• Modern Candles
• Empire Candle Co. LLC.
• Murphy’s Naturals
• TRUDON
• Others

These companies operate in the market through various strategies such as product innovation, mergers and acquisitions, and partnerships.

New players entering the candle market are adopting innovation and development to differentiate themselves and gain traction. These players often focus on product innovation and diversification strategies, such as introducing new scents and varieties, and artistic and decorative designs.

Several brands are also exploring natural and eco-friendly options, such as candles made from soy wax, beeswax, and coconut wax, appealing to environmentally conscious consumers. These market leaders leverage their extensive experience, global networks, and marketing prowess to maintain market share and drive industry trends, often setting the standard for excellence in Candle.

The US Candle Market is segmented as follows:

By Product Type

• Votive Candles
• Pillar Candles
• Container Candles
• Taper Candles
• Specialty Candles
• Others

By Fragrance Type

• Scented Candles
  • Floral
  • Woody
  • Sweet & Spicy
  • Others
• Non-scented Candles

By Wax Type

• Paraffin
• Beeswax
• Stearin
• Soy Wax
• Others

By Category

• Natural
• Synthetic

By End-use

• Residential
• Commercial
  • Beauty & Spa Centers
  • Medication Centers
  • Hospitality
  • Others

By End User

• Online
• Offline