Candle Market: Current Analysis and Forecast (2025-2033)

Until the development of electric light, lighting was typically provided by oil lamps and candles. Candles are still frequently used for lighting in places without electricity or with regular power outages. Because of their aesthetic value and fragrance, wax candles are used to create ornamental candles that are highly sought after by society's higher classes, especially for creating a cozy, romantic, or gentle atmosphere. Candles are common in homes, restaurants, and other settings where people want to create a calming and comfortable ambiance or utilize them to give light. Wax candles are mostly used during social and religious events. Candles are also decorated according to the theme, such as Easter, Christmas, Halloween, etc. Additionally, candles can be utilized to spread fragrances, such as pleasant perfumes or air freshening scents. Some popular types of candles are jar candles, votives, and other similar candles where the candle burning element is formed within a solid container. There are also stand-alone candles, such as pillars, which are not formed within a solid container.

The Candle Market is expected to grow with a significant CAGR of 6.30% during the forecast period (2025- 2033F). The candle market is soaring due to the rising demand for scented candles, the increased usage of candles in interior design, the increased use of different kinds of candles in healing spas, and the increased trend of gifting. Furthermore, the increased popularity of internet shopping, at-home entertainment, and self-care routines is a major factor fueling the candle market. The demand for therapeutic fragrances, especially lavender, eucalyptus, and chamomile, is increasing. In the modern world, when people are often stressed out and preoccupied with work, the growing demand for health and home decor products has changed from being a simple indulgence to a priority, as it imparts emotional value to the clients. According to The Dubrovnik Times, many people incorporated candles into their self-care routines in 2021, with specific aromas proven to improve mood.

On February 10, 2025, Bath & Body Works and Disney collaborated to launch the Disney Princess Fragrance Collection. The collection features six brand-new fragrances inspired by some of the most beloved Disney Princess characters: Ariel, Belle, Cinderella, Jasmine, Moana, and Tiana. The 85-product assortment is Bath & Body Works' most extensive collaboration collection yet and consists of an array of products including fine fragrance mist, body wash and cream, lip gloss, candles, hand soap and sanitizer, and decorative accessories that highlight icons from each character's story.

Based on product, the market is segmented into container-based, pillars, and others. Among these, the container-based candle market has the largest share in the candle market because of its convenience and safety, as they reduce wax spillage and minimize fire hazards. Container-based candles have one advantage as they are like a candle and candle holder rolled into one, which further never drip. Further, their visual appeal is growing as more and more customers are drawn to chic and ornamental candle containers that go well with interior design. To attract ecologically conscious consumers, many firms are also emphasizing eco-friendly products like soy-based wax and reusable glass jars. Scented container candles have gained popularity as a way to promote relaxation and improve moods as a result of the increase in demand for home scents and the increased investment in self-care and home ambiance. Moreover, container candles are a popular gift because of their high-quality packaging and adaptability.

Based on wax type, the market is segmented into paraffin, soy, and others. Among these, the largest portion of global revenue in 2024 came from the paraffin waxes market, as they are ideal for use as candles because of several properties, including their varied melting point and ability to stay solid at room temperature. They have high fluidity and are also insoluble in water. Paraffin waxes are made by vacuum distilling petroleum crude, which can then be refined, formed, and altered with additives and are further sold in slabs, powder, chips, and other forms. Being a poor conductor of heat, the product cannot be made to melt. In reality, boilers frequently have an external time switch installed. Additionally, they are cost-effective as compared to their alternatives, like soy or beeswax. Further, they have a stronger retention period and have smooth and consistent burn.

Based on distribution channel, the market is segmented into online and offline. In 2024, the online segment controlled the global market and generated the highest percentage of total revenue in the candle market. The segment is anticipated to continue growing at the quickest rate, maintaining its top spot in the industry for the duration of the forecast. Online shopping is convenient and easily accessible to its consumers as they can browse and purchase candles from the comfort of their homes, eliminating the need to visit physical stores. Their websites have high-quality pictures and have clear return and change policies. Further, online candle sales have a high margin, are professional, and user-friendly. Additionally, they can charge a credit card (shopping cart) and provide customer service (toll-free number). Moreover, a plethora of candle varieties, fragrances, and customizable designs are available on e-commerce sites. Besides, brands also leverage social media, influencer marketing, and targeted ads to reach a broader audience, driving online sales. Nowadays, many companies offer customized gift sets and candle subscription boxes, making online purchases more appealing. Small, eco-friendly candle companies flourish online, serving customers seeking one-of-a-kind, handcrafted, or environmentally friendly goods.

For a better understanding of the market, the growth of the Candle market is analyzed based on their worldwide demand in regions such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, France, U.K., Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. The increased economic condition accelerated the market's expansion in Europe owing to the greater wellness and self-care trend. European countries such as Germany, the United Kingdom, and France have decent economic growth, which has been the major consumption market for candles in the EU. As per the European Candle Manufacturers Association, the consumption of candles in the European Union (EU 27) was around 756.423 Tons in 2023. The increase in the supply of candles of good quality with relatively competitive prices in the EU market stimulated the growth of consumption. The positive impact brought by the improvement of the trade environment promotes healthy competition, becoming a solid driver for candle consumption in the EU. Further, increasing requirements and constantly changing preferences for the quality and design of candles, both domestic and foreign retailers and manufacturers of candles are increasing investments in quality improvement and design innovation in candles. In turn, such development stimulates the consumption of candles in terms of either volume or spending per unit, leading to an increase in the candle market in the EU.

Some of the major players operating in the market include Bath & Body Works, Inc., Le Labo (The Estee Lauder Companies Inc.), Wax Lyrical Limited (Portmeirion Group plc.), Diptyque S.A.S., MALIN + GOETZ Inc., NEST Fragrances, LLC, The Yankee Candle Company, Inc. (Newell Brands Inc), Contract Candles & Diffusers Ltd. (Thf Holdings Ltd), Ellis Brooklyn LLC, and Candle-Lite Company, LLC (Luminex Home Decor & Fragrance Holding Corporation).