Scented Candles Market

Market Overview

The global scented candles market was valued at USD 401.71 million in 2023. It is expected to reach USD 586.43 million in 2032, growing at a CAGR of 4.3% over the forecast period (2024-32). Scented candles are popular for their ability to create a pleasant ambiance and enhance home decor. Consumers increasingly value the aesthetic and sensory experience that scented candles provide, making them a staple in modern home design​.

Moreover, as disposable income increases, especially in developing regions, consumers are more likely to spend on non-essential luxury items, including scented candles. This trend is particularly strong in urban areas where lifestyle changes drive demand for home luxury products.

Candles make consumers feel relaxed, instantly making a room feel warmer and more welcoming. Scented candles significantly contribute to creating a positive and calm atmosphere. One of the consumer trends for 2020 is sculpture-scented candles or candles with organic shapes. The Dubrovnik Times reported that because certain smells have been shown to boost mood, many people have started using candles as part of their self-care routine in 2021. To improve their mental and spiritual wellness, Europeans increasingly incorporated spa and yoga routines into their lifestyles in 2020, predicted CBI by Globally Cool B.V.

In these health and well-being rituals, Customers of all ages and backgrounds are starting to prefer scented candles more and more. They are frequently used to deliver a mood and energy boost or to create a cozy and peaceful ambiance in the house. Additionally, scented candles can be used to cover unpleasant odour or to enhance a particular occasion. Scented candles are commonly used to uplift the mood and deliver a warm, inviting ambiance in one's home. They can also be utilized to enhance a particular event or cover unpleasant odour.

Market Dynamics

Global Scented Candles Market Drivers

Increasing Disposable Income of the Younger Generation

According to the YPLUSE 2020 report, for young consumers, the notion of home has transformed in the later parts of quarantines. Millennials have long since preferred spending more time at home and are content to stay in on weekends and binge-watch shows. YPLUSE's "No place like home" trend research states that 82% of millennials agree that their home has provided comfort during quarantine, leading 65% to invest in home decor.

Candles come under home decoration items, and home decor comes in the list of the top 10 things bought by millennials during quarantine to make their home comfortable. In addition, according to a Harvard College consulting group report, the young generation moved back in with their families due to the pandemic, which increased their disposable income. Consumers of this generation saved up on essentials and rent and therefore had more disposable income to spend on non-essentials and luxury items. Only 10% of Generation Z had no formal employment, education, or training before the pandemic.

According to a March 2020 analysis from the Becker Friedman Institute, it was observed that consumers 30 and younger significantly decreased their spending, and this was also the case for households without children, both of which describe the majority of Gen Z. This pattern is supported by HCCG survey results, which show that a significant 29% of respondents have maintained or even increased spending since the pandemic began. Consumers' changing lifestyles and increased disposable incomes have made them spend more money on candles, particularly scented candles with better designs. Such factors drive market growth.

Therapeutic Benefits of Scented Candles

Several researchers have stated that ambient urban odors can evoke basic emotions in people of different ages. For instance, according to a study by Haehner in 2017, exposure to a range of typical ambient urban odors (synthetic mixtures representing the odors of disinfectant, candles/beeswax, summer air, burnt smell, vomit, and a musty smell) gave rise to significant changes in autonomic activity (e.g., in the electrodermal response). In addition, essential oils used in scented candles help relax the brain and senses. Scented candles are frequently used in these therapeutic procedures because they generate a pleasant environment that aids in attaining a peaceful and meditative frame of mind.

Additionally, there is a growing demand for personalized scented candles to be deployed in therapies and to promote relaxation in a particular health state because each aroma has its therapeutic effect. For instance, Jonathan Adler's Muse Gilded Candle, made of a soy and paraffin wax mixture, contributes to developing a nice aroma in the interior. Further, the gold-gilded porcelain bowl can be utilized as a vase after the candle is done. Pink grapefruit, raspberry, French cassis, violet foliage, rose petals, and grape leaf are a few common scents.

Global Scented Candles Market Restraint

Volatile Organic Compounds released from Scented Candles

A person who burns a candle containing various chemicals is polluting their home's air and inhaling toxic waste. It is not only the scents that the consumer should be concerned about either, but many studies also show that the wax and wick impact air pollution levels. Synthetic perfumes and dyes are used in scented candles, which emit harmful volatile organic compounds (VOC) even at room temperature. The most commonly emitted VOCs associated with candle smell are formaldehyde, petroleum distillates, limonene, alcohol, and esters. These toxic compounds can cause various health issues, including headaches, dizziness, allergy symptoms, asthma attacks, respiratory infections, and cancer.

Although it is the most environmentally friendly wax when inhaled, paraffin wax is a byproduct of crude oil refinement that is bad for both humans and indoor air quality. In addition to emitting toxic chemicals, burning paraffin wax produces soot with particles that can linger in the air for hours. According to a University of South Florida study, these minute soot particles resemble diesel exhaust in size and makeup. These particles enter the lungs profoundly and enter the bloodstream after that. Similarly, according to a different US Environmental Protection Agency research, the soot emissions from scented candles are significantly higher than those from unscented candles.

Global Scented Candles Market Opportunities

Shift from Traditional Paraffin Wax Candles to Healthier Alternatives

Increased awareness regarding the toxic levels of scented candles has led consumers to shift from traditional paraffin wax candles to healthier alternatives such as vegetable-based candles. For instance, a study was conducted by South Carolina State University, and it was discovered that vegetable-based candles, such as soy candles, did not emit any of the toxins released by paraffin candles. They also do not produce black soot, which is difficult to clean and dangerous to consumers' health. In addition, a soy candle might leave a fine white residue, but that is safe and easy to clean after continuous use. Environment-friendly and decor candles are expected to create new opportunities for the Scented candles market demand in the future.

According to attitudinal and behavioral data from Comscore Plan Metrix Multi-Platform, in August 2020, 74.2 million consumers had finished remodeling their homes in the previous year, which is up by nearly 20% compared to the same month of the previous year. Furthermore, tens of millions of Americans state that they will likely buy a new home in the next six months, indicating that this trend will continue. This spending on interior decoration will positively increase the demand for candles and other home décor items.

Regional Analysis

Region-wise, the global scented candles market is segmented as North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

North America Dominates the Global Market

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. 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. The European candle market has witnessed increased growth in recent years. According to the Centre for the Promotion of Imports from Developing Countries (CBI), it comprised about two-thirds of the world candle market as of December 2020. Developing countries accounted for around a fifth of total imports, rising continuously. The recent coronavirus outbreak and global responses significantly impacted international trade and the European market for various products and services, including home decoration and home textiles (HDHT). Although the market for HDHT products, such as scented candles, was affected in the early stages of the epidemic, it increased as people prioritized their health and wellness and indulged in little extras. Scented candles, with their dim light and soothing aromas, enhance the ambiance of any space and contribute significantly to the "home sweet home" trend. This bodes well for the Scented candles market trends in Europe.

Asia-Pacific is predicted to experience the greatest global scented candle market growth. Since being homebound due to the COVID-19 pandemic, people have been focusing on improving their homes in terms of ambiance, comfort, and a warm experience. Consumers have increased their purchase of various home decors items like table showpieces, wall art, and scented candles, and this trend will benefit the scented candles market in Asia-Pacific. Ramakant Sharma, co-founder and COO of Livspace, stated that the many people would have normally spent on vacations is now being redirected to home décor. This trend bodes well for the market.

Segmental Analysis

The global scented candles market is segmented based on product and distribution channels

Based on product, the global 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. Container-based candles are one of the most popular types of scented candles, as they can be used in restaurants and at home. These candles help establish the tone and atmosphere of a space. Container-based candles help millennials cope with their hectic lifestyles and maintain a positive attitude by burning these candles. In addition, container-based candles provide the ideal atmosphere to induce calmness and a sense of well-being. These scented candles are the most adaptable, as they come in various shapes and sizes, including jars, mugs, and glasses. Many candle manufacturers are shifting from clear glass candle jars and increasingly using amber jars to create container candles, as amber glass offers a classic vintage look and provides a romantic, soft glow when the candle is in use.

Additionally, many manufacturers offer the option to customize container candles. They have been popular candle choices at home for generations as they are non-flammable, contained, have a wick to burn for light, and are filled with wax. They have a lower melting point, which makes it easier for smells to fill the space properly. Container candles come with 100% natural fiber wicks and premium-grade paraffin wax and may burn for up to 110 hours while emitting a calming scent.

The scented pillar segment is the second largest. Scented pillar candles are ideal for weddings, hotel lobbies, catering dinners, and restaurants. Pillar candles are cylindrical, which is perfect for efficient burning. Some pillar candles have a large diameter, are square or round, and vary in height. Pillar candles can be arranged on a ceiling-mounted chandelier. Since pillar candles contain more wax, they can burn for up to 500 hours. They emit less smoke and produce no drips. In addition, customers who do not want candleholders should opt for pillar candles. These are available in various sizes, heights, and smells. Larger pillar candles can have two or three wicks, providing additional illumination. These candles are ideal for creating a romantic atmosphere in the bedroom and are perfect for a romantic candlelight dinner. Pillar candles are used in weddings for complimenting wedding decorations, bridesmaid dresses, and wedding napkins.

Based on distribution channels, the global 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. The NPD Group, which tracks sales in department stores and specialized beauty retailers, reported that from January 2020 to September 2020, scent sales decreased by 17% year over year. Additionally, sales of home scents rose by 13%, while gift sets containing home scents, like candles and lotion, rose by 22%. For instance, less conventional fragrance categories are seeing a rise in demand from cosmetics companies and stores. The Times reported in August 2020 that candle sales at Selfridges had climbed by 54% since March 2020, and at Diptyque, they had increased by 100% since March 2019.

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.