Candles Market

As a home furnishing product, the demand for candles is expected to increase substantially across the globe during the forecast period of 2018 to 2023. The demand for scented candles has been increasing over the last few years which acts as a major driver for market growth. E-retailing also plays a significant role in the growth of the global candles market during the assessment period of 2018 to 2023. Consumer preference for aromatherapy is a significant factor for the growth of the global candles market both in developed and developing economies. However, volatile raw material prices are anticipated to hinder the growth of the global candles market during the forecast period.

The demand for scented candles has been growing over the last decade owing to several factors. One of the significant reasons for the growth of the scented candles market is the rising use of the product as a homecare product. Increasing per capita disposable incomes have affected consumer spending behavior. Consumers are more likely to spend on home furnishings, such as candles, which is expected to drive the demand for scented candles.

Scented candles also find widespread application in aromatherapy. The applications of aromatherapy include pain management and the treatment of cardiovascular disease, insomnia, and cold and cough. With rising health consciousness among consumers, the global aromatherapy market has been growing at a significant rate in recent years. The increasing prevalence of lifestyle diseases is one of the significant factors for the rising demand for aromatherapy. In addition, consumer inclination toward the therapeutic use of essential oil is expected to act as a driver for the growth of the aromatherapy market. Scented candles are made with essential oils and offer various aromatherapeutic properties. The increasing use of essential oils in candles serve the purpose of eliminating odors and promoting health and well-being. According to MRFR Analysis, the global aromatherapy market was valued at USD 1.17 billion in 2018 and the market is projected to register a CAGR of 8.55% during the forecast period of 2018 to 2023.

These factors are expected to drive the growth of the global candles market in the near future.

The use of toxic ingredients such as petroleum and other synthetic wax in the production of candles results in the release of pollutants including benzene, styrene, toluene, and acetone, thereby contributing to indoor air pollution. Chronic exposure to such fumes may pose a threat to human life and lead to symptoms of allergies and asthma. Traditionally, candles were made with tallow and paraffin with the aim of producing in bulk with low investments. Additionally, candle wicks are often made of chemically grown cotton that has been bleached using dioxins. Wicks that are made with metal down the middle pose a hazard to the human body as they contain lead. However, growing health concerns and increasing awareness are resulting in consumers choosing safe products. This has led to lucrative opportunities for market players to introduce candles with safe ingredients. Modified formulas using ingredients such as soy wax, palm wax, plant-based waxes, essential oils, and natural fragrances are increasingly being used by market players to produce candles.

Paraffin wax is one of the major raw materials used for the production of candles. Paraffin wax is derived from petroleum, coal, or shale oil. Over the last few years, the price of this raw material has been fluctuating due to variances in the price of crude oil.

Prior to 2015, crude oil prices were more than USD 100 per barrel. In 2015, the price decreased by 51% and reached USD 52.09 per barrel. Since then, the price has not crossed the USD 100 per barrel mark. With the oversupply of crude oil, there was a sudden drop in the price due to less demand. The fall in demand was observed mainly in the US, China, and European countries.

Thus, fluctuating crude oil prices have affected the production of paraffin wax, which is expected to hinder the growth of the global candles market during the forecast period.

Candles pose a high level of risk of home fires due to a lack of precautions taken in the placement of lit candles and other related factors. According to the US National Fire Protection Association (NFPA), fire departments in the country responded to about 9,300 home structure fires started by candles between 2009 and 2013. These fires resulted in 86 deaths, 827 injuries, and USD 374 million in direct property damage. During that same five-year period, it was noted that 36% of home candle fires started in the bedroom. On average, 25 home candle fires were reported per day. With such incidences, people have become extremely conscious about choosing safe products and are reducing their purchase of products involving naked fires. However, market players are countering this issue with awareness campaigns regarding guidelines for using candles responsibly.