Global Scented Candles Market to Grow at a CAGR of 4.3% during 2023-2031

Introduction

Candles instantly make a room feel warmer and more welcoming, making customers feel at ease. Scented candles can help to create a positive and relaxing atmosphere. Sculpture-scented candles or candles with organic shapes are among the consumer trends for 2020. According to the Dubrovnik Times, because certain scents have been shown to improve mood, many people have begun using candles as part of their self-care routine in 2021. In addition, according to CBI by Globally Cool B.V., Europeans will increasingly incorporate spa and yoga routines into their lifestyles to improve their mental and spiritual wellness in 2020.

Market Dynamics

Increasing Disposable Income of the Younger Generation Drives the Global Market

Candles fall under the home decoration category, and home decoration is among the top 10 items millennials purchase during quarantine to make their homes more comfortable. According to a Harvard College consulting group report, the pandemic caused the young generation to move back in with their families, which increased their disposable income. This cohort of consumers saved money on necessities and rent, allowing them to spend more on non-essentials and luxury items. Before the pandemic, only 10% of Generation Z had no formal employment, education, or training.

According to a March 2020 analysis by the Becker-Friedman Institute, consumers under 30 and households without children, representing the majority of Generation Z, reduced their expenditure significantly. HCCG survey results indicate that 29% of respondents have maintained or even increased expenditures since the pandemic's start. Changing lifestyles and higher disposable incomes have caused consumers to spend more on candles, especially perfumed candles with improved designs.

Shifting from Traditional Paraffin Wax Candles to Healthier Alternatives Creates Tremendous Opportunities

A heightened awareness of the toxicity of aromatic candles has prompted consumers to switch from traditional paraffin wax candles to vegetable-based alternatives. According to a South Carolina State University study, vegetable-based candles, such as soy candles, do not emit any toxins that paraffin candles emit. They do not produce black carbon, which is difficult to clean and hazardous to consumers' health. Continuous use of a soy candle may leave a fine white residue, which is safe and simple to remove. Eco-friendly and decorative candles are anticipated to create new opportunities for the market for Scented candles.

According to attitude and behavior data from Comscore Plan Metrix Multi-Platform, in August 2020, 74.2 million consumers completed home renovations in the previous year, a nearly 20% increase from the same month in 2019. In addition, tens of millions of Americans anticipate purchasing a new property within the next six months, indicating that this trend will continue. This expenditure on interior decoration will increase the demand for candles and other home décor products.

Regional Analysis

North America is the most significant global scented candles market shareholder and is predicted to exhibit a CAGR of 2.81% over the forecast period. The growing demand for self-care products across the region has bolstered auxiliary scent products like scented candles. The sale of scented candles in North America is primarily stronger during Christmas or holidays; players have been coming up with new and unique scents and fragrances to boost sales throughout the year. According to a blog post by glass packaging manufacturer Glassnow in 2021, retailers have been focusing on keeping a consistent supply of seasonal scents on hand to keep sales steady all year round. Spring scents include apple blossom, cherry blossom, lavender, and honeysuckle, while summer fragrances include sea salt and coconut. The blog post also stated that retailers stock up on pumpkin spice, apple, and cinnamon fragrances in the fall and cinnamon, vanilla, and peppermint fragrances in the winter, particularly during the hectic Christmas season. Such trends continue to spur the demand for scented candles in North America.

Europe is estimated to exhibit a CAGR of 3.4% over the forecast period. In recent years, the European candle market has increased in size. According to the Centre for the Promotion of Imports from Developing Countries (CBI), it comprised approximately two-thirds of the global candle market as of December 2020. Approximately one-fifth of total imports were accounted for by developing nations, and this proportion was rising continuously. Recent coronavirus outbreaks and global responses have substantially impacted international trade and the European market for various goods and services, including home decoration and home textiles (HDHT). In addition, although the market for HDHT products, such as scented candles, was affected during the early phases of the epidemic, it grew as people prioritized their health and well-being and indulged in small luxuries. With their dim light and calming aromas, scented candles contribute significantly to the "home sweet home" trend by enhancing the ambiance of any room. This augur well for the European market for scented candles.

Key Highlights

• The global scented candles market was valued at USD 385.15 million in 2022 and is projected to reach USD 589.93 million by 2031, registering a CAGR of 4.3% during the projected period (2023–2031).
• Based on product, the global scented candles market is categorized into container-based, pillar, and others. The container-based segment is the highest contributor to the market and is predicted to exhibit a CAGR of 3.4% during the forecast period.
• Based on distribution channels, the global scented candles market is segmented into hypermarkets and supermarkets, convenience stores, and online. The hypermarkets and supermarkets segment dominates the global market and is estimated to exhibit a CAGR of 2.8% during the projected period.
• North America is the most significant global scented candles market shareholder and is expected to exhibit a CAGR of 2.81% over the forecast period.

Competitive Players

1. Estee Lauder Companies Inc.
2. Newell Brands
3. MVP Group International Inc.
4. L Brands
5. Village Candle
6. Portmeirion Group PLC
7. NEST New York
8. Lalique Group SA
9. Diptyque Paris
10. Thymes LLC.

Recent Developments

• February 2024 - Yankee Candle launched its new spring collection, Under the Desert Sun, which introduces a fresh array of scents that deviate from the usual floral and fruity themes associated with the season. This unique collection features fragrances inspired by the desert, including notes of tea leaves, saguaro cactus, and vanilla, offering a distinct and refreshing aromatic experience for springtime. This release showcases Yankee Candle's commitment to innovation and catering to diverse scent preferences, providing consumers with novel and captivating options for their home fragrance needs.
• January 2024 - Harry Slatkin, an icon in luxury home fragrance design, launched a new product line at Dollar General. The new brand, Club92 by Slatkin + Co, is described as a collection of elevated everyday fragrances with a scent for everyone. “When creating Club92, I wanted to provide a new, high-quality home fragrance experience to the Dollar General consumer,” said Harry Slatkin, founder and CEO of Slatkin + Co.

Segmentation

1. By Product
   1. Container-based
   2. Pillar
   3. Others
2. By Distribution Channel
   1. Hypermarkets and Supermarkets
   2. Convenience Stores
   3. Online