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The scented candles market is estimated to grow by USD 758.83 million at a compound annual growth rate (CAGR) of 3.46% between 2022 and 2027. The market is thriving due to escalating investment in household interiors, reflecting a growing trend in home decor. Key companies are expanding their product offerings to cater to diverse consumer preferences, contributing to market growth. As consumers prioritize enhancing their living spaces, scented candles offer a versatile and aesthetically pleasing solution, driving demand in the global market.
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This market growth analysis report extensively covers market segmentation by distribution channel (offline and online), product (container-based, pillars, and others), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
Based on distribution channel, the market is segmented into offline and online. The market share growth of the offline segment will be significant during the forecast period. The offline distribution channel generates revenues from specialty stores, hypermarkets, supermarkets, convenience stores, and clubhouse stores, as well as department stores. Players are expanding their stores in the local and regional markets to fuel sales through offline channels. Scented candle manufacturers sell their products through specialty stores and other retailing formats, which intensifies market competition. Retailers are introducing new businesses, wider assortments, pricing, and retail strategies to remain competitive. Such initiatives will increase segment growth during the forecast period.
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Companies are also resorting to the online-to-offline (O2O) business strategy to enhance sales from offline distribution channels and simultaneously promote a digital experience. This O2O channel provides various benefits to buyers, including in-store pickup of the goods purchased online, purchasing goods online while at the physical store, and returning products purchased online to the preferred physical stores. The adoption of these strategies will help Companies to increase their market shares and expand their consumer base.
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Europe is estimated to contribute 30% to the growth of the global market during the forecast period. Another region offering significant growth opportunities to Companies in North America. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America in the market is expected to grow significantly during the forecast period. This is due to the increasing demand for fancy candles during festive seasons and holidays such as Easter and Christmas, an area that is expected to continue to lead during the forecast period. The continuous and steady rise in consumers' awareness regarding the ingredients used in scented candles has played a major role in driving the demand for scented candles. Additionally, many Companies operating in the market are clearly mentioning the ingredients used to produce scented candles. For instance, S.C. Johnson and Son Inc. (S.C. Johnson and Son), one of the major Companies operating in the market, disclose all the ingredients used in the production of its Glade scented candles. Such transparency and disclosure will have a positive impact on the market.
The market continues to flourish across various sectors, including hotels, restaurants, and wellness facilities, driven by consumers' disposable income and a growing interest in home renovation and decoration activities. Amid the pandemic, scented candles with therapeutic properties find favor in religious institutions and spas, attracting both commercial and residential sectors. Market players invest in R&D to introduce innovative designs like sculpture-scented and organically shaped candles alongside popular choices such as twisted candles by Dutch designer Lex Pott and Hay's hit Pillar candles. Social media amplifies fragrance options, appealing particularly to millennials for parties and home settings. Residential sector and container-based segment, featuring customized options in non-flammable containers, dominate retail outlets and supermarkets, catering to diverse consumer preferences.
The increasing investment in household interiors is notably driving the market growth, although factors such as stiff competition from the unorganized sector may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The surge in household interior investment is a significant driver of market growth. Factors like escalating disposable income, rapid industrialization, and urbanization, along with increased employment opportunities and rising investments, propel new residential construction activities. Additionally, government support in the form of affordable loans and tax waiver schemes further stimulates housing demand, fostering increased investment in household interiors. Scented candles serve as integral elements enhancing residential aesthetics. With a global trend towards eco-friendly housing, initiatives like the Sierra Crest development in Fontana, California, exemplify sustainable residential practices, incorporating features such as solar energy utilization. Such initiatives are expected to bolster the demand for eco-friendly home decor items like scented candles, aligning with consumers' preferences for sustainable living.
The expansion of e-commerce market is a key trend in the market. The expansion of the e-commerce market and globalization and liberalization policies have simplified cross-border trade and led to the growing trend of B2B and B2C business. Advances in technology, coupled with increasing Internet penetration, have increased online purchases and sales of goods and services across the globe. The gradual shift in customer spending and shopping habits has amplified the growth potential of the e-commerce market.
The growth of information and communication technology, artificial intelligence, and other modern technologies has expanded the customer base, thereby creating lucrative growth prospects for key market Companies. Factors such as the advent of social media, increasing Internet penetration, and the growing adoption of smartphones have allowed reliable access to a wide range of products and have helped customers choose the best in-home decor, including scented candles.
Stiff competition from the unorganized sector is the major challenge impeding market growth. The market is mainly composed of two segments, namely, the organized and unorganized sectors. The organized sector mainly comprises big retailers or manufacturers that have the necessary permits and follow strict rules and regulations; on the other hand, the unorganized sector includes small retailers or manufacturers that are not registered with the government. Thus, the market is highly fragmented and unorganized.
Venturing into a candle-making business does not require immense capital or investment. This encourages small companies or small retailers to enter the business and leads to the proliferation of sub-standard or duplicate products. Major candle manufacturers face intense competition from local, unorganized players that offer non-standardized products at very low prices. This hampers the competitive scenario in the market as established candle manufacturers are compelled to lower the price of their products, which ultimately impacts their profit margins and sales volume.
The market research and growth report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Newell Brands Inc. - The company offers scented candles under the brand name Yankee Candle.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 15 market Companies, including:
Qualitative and quantitative analysis of Companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies as dominant, leading, strong, tentative, and weak.
The market witnesses steady growth across various sectors, including hotels, restaurants, and wellness facilities, driven by increasing demand for home renovation and decoration activities. Amid the pandemic, scented candles gain traction for their therapeutic properties, finding applications in spas and religious institutions. Innovative designs such as sculpture-scented candles and twisted candles, including creations by Dutch designer Lex Pott, attract consumers in both commercial and residential sectors. R&D investments focus on enhancing fragrance options and sustainability, with container-based segments gaining significant revenue share. Customized container-based scented candles featuring non-flammable containers and premium-grade paraffin wax cater to diverse preferences, particularly among millennials. The luxury candle market sees growth, fueled by demand for premium scented candles infused with essential oils. Ethical considerations drive the adoption of sustainable wax types like palm wax, sourced from RSPO-certified ethical farms, supporting environmental conservation efforts.
In the commercial sector, scented candles find applications in various settings, from retail outlets to online marketplaces, catering to diverse consumer preferences. Organically shaped candles and Hay's hit Pillar candles offer unique options for home decoration activities and parties alike. Quality considerations such as wick material and melting point drive demand, with natural fiber wicks and hydrogenated palm oil being favored choices. Mass-produced scented candles remain popular, particularly in the spa and massage industry, where they enhance the ambiance and relaxation experience. As consumers seek eco-friendly options, candles made from hydrogenated palm oil gain traction, aligning with sustainability goals while maintaining high-quality standards. The global scented candles market continues to evolve, offering innovative solutions across various sectors and consumer segments.
The market forecasting report covers market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Scented Candles Market Scope |
|
Report Coverage |
Details |
Page number |
162 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.46% |
Market growth 2023-2027 |
USD 758.83 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.6 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 30% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archipelago, Bolsius International BV, Conscious Candle Co., Desirepath Mississippi, LLC, Diptyque Distribution LLC, GALA GROUP GMBH, Godrej Consumer Products Ltd., Lalique Group SA, MVP Group International Inc., NEST Fragrances, Paddywax LLC, Prolitec, Reckitt Benckiser Group PLC, ScentAir Technologies LLC, Seda France, The Bridgewater Candle Co., The Procter and Gamble Co., Welburn Candles Pvt. Ltd., Newell Brands Inc., and S.C. Johnson and Son Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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