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The scented candles market size is estimated to grow by USD 637.6 million at a CAGR of 2.87% between 2023 and 2028. The market growth can be attributed to increasing investments in household interiors and a rising trend in home decor. Major companies are expanding their product ranges to meet diverse consumer preferences, fueling demand. The emphasis on enhancing living spaces with stylish and fragrant home accessories also contributes to market expansion.
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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 such as decorative candles 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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The offline segment was valued at USD 2.90 billion in 2018. 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 31% 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 once 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 scented candle market is witnessing innovation with products like sculpture scented candles, appealing to consumers seeking unique home decor items. These candles are becoming popular not only in traditional outlets but also in convenience stores, reflecting their widespread appeal. The market is diversifying with offerings like paraffin wax segment candles and those made from Sustainable Palm Oil (RSPO), soy wax, and blended options like beeswax. Candles are available in various forms such as jar, tea light, tumbler, and vase, offering consumers a wide range of choices. With options for liquid dyes to enhance aesthetics, scented candles cater to diverse preferences for fruit, flower, and spice scents.
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.
Moreover, 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. Such factors will increase the market growth during the forecast period.
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.
Moreover, 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. Such factors will increase the market growth during the forecast period.
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.
However, the 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. Such factors will decrease the market growth during the forecast period.
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 research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
The relays market intersects with various industries, including the hotel, restaurant, and wellness facility sectors. These establishments often use mass-produced scented candles for ambiance. Religious institutions also utilize candles in their rituals, contributing to market demand. In the home renovation and decoration segment, organically shaped and twisted candles are gaining popularity, especially among Millennials seeking unique decor items. Retail outlets and online marketplaces cater to the growing demand for eco-friendly candles made from hydrogenated palm oil or natural ingredients. The spa and massage industry utilizes candles for aromatherapy and candle massages, creating a niche market for fragrance-infused and scented oil candles. As the home decor market evolves, the demand for artisanal and non-toxic ones is expected to grow, emphasizing the importance of eco-conscious manufacturing practices.
Moreover, in the scented candle market caters to a wide range of industries and consumers, including hotels, restaurants, and wellness facilities. These establishments use candles for ambiance and fragrance, often opting for organically shaped candles and those made from artisanal materials. Consumers seeking home decoration options also contribute to the market, choosing from a variety of fragrance options and blends. Safety is a priority, with non-toxic candles and fiber wicks being preferred. The market extends to retail outlets like Selfridges and convenience stores, offering mass and pillar candles along with fragrance-infused candles. Overall, the market caters to a diverse range of needs, from aromatherapies to enhancing the ambiance of spas and massage parlors.
Market Scope |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.87% |
Market growth 2024-2028 |
USD 637.6 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.68 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 31% |
Key countries |
US, China, Germany, UK, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archipelago, Bolsius International BV, Conscious Candle Co., Curio Brands LLC, Diptyque Distribution LLC, GALA GROUP GMBH, Godrej Consumer Products Ltd., House of Em5, Lalique Group SA, NEST Fragrances, Newell Brands Inc., Paddywax LLC, Prolitec, Reckitt Benckiser Group Plc, S.C. Johnson and Son Inc., ScentAir Technologies LLC, Seda France, The Bridgewater Candle Co., The Procter and Gamble Co., and Welburn |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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