Geographic reference: World
Year: 2018 and 2025
Market size: $310.7 million and $545.2 million, respectively

Balsam and pine. Gingerbread and peppermint. All scents that conjure in many warm feelings centered around the winter holidays. Whether or not you have live greenery in your home, bake cookies, or fill a candy dish with mints, your home can still be suffused with these aromas by lighting scented candles. Today’s market size shows worldwide scented candle revenues¹ for 2018 and projected for 2025. In 2018, scented candles constituted 9% of the overall global candle market.

Candles have been used for thousands of years as both a source of light and in religious observances and celebrations. At this time of year, candles are used to light the menorah to celebrate Hanukkah, the kinara to celebrate Kwanzaa, the Advent wreath in anticipation of Christmas, and the farolitos that mark the homes hosting Las Posadas.

Some early civilizations made wax candles from available plants and insects. In the West, candles originally were made of animal fats. Burning them gave off an unpleasant odor. Scents were added to cover up the pungent smell. Other materials were used to make candles as well, such as spermaceti, beeswax, and paraffin. Beeswax candles emitted a sweet smell but were expensive. Gas and kerosene lamps, then lightbulbs, replaced candles as a way to light homes after dark. As a result, the popularity of candles waned until the mid-1980s when candles became a luxury decor item. Now, candles with colored waxes and decorative holders adorn homes. Scented candles are designed with aromatherapeutic elements to create a relaxing and cozy home environment. Essential oil infused organic candles made of natural ingredients such as beeswax, soy wax, and coconut wax have become more popular in recent years. Scented candles are also popular gifts, especially among millennials. For some, giving scented candles shows “the givers’ wishes for one to always remain enlightened even during the darkest of times.”²

Scented candles come in thousands of varieties, from simple scents such as rose, lavender, and vanilla to more complex blends of scents. Most premium products are comprised of three layers of fragrance, or notes. The top note provides the initial impression. The middle note is the main body of the scent. The base note provides the final impression. For example, Yankee Candle’s Balsam & Cedar has citrus, herbs, and red berries as its top note; pine balsam, cedar, and sandalwood as its middle note; and vanilla, warm amber, and musk as its base note. Together, these provide a woody, forest scent.

Container-based candles garnered 55% of the market in 2018. These candles are convenient for the user. They don’t require a separate holder or stand and the liquid wax remains in the container when the candle is burned. Container-based candles are popular gifts. 

In 2018, convenience stores accounted for about 60% of revenues. The large number of convenience stores in India, China, Japan, and Australia are driving sales in this segment. Sales at hypermarkets and supermarkets accounted for a quarter of revenues, with online sales rounding out the rest. Online sales are expected to grow the fastest from 2019 to 2025, at a compound annual growth rate of 9.2%, as more major retailers shore up their online presence. Some of the major online sellers of scented candles include Candle Warehouse, Amazon, Nordic West, Prosperity Candle, and Candles Scandinavia Group AB.

This growth prediction by Grand View Research, however, was made before the COVID-19 pandemic. E-commerce revenues had been growing even before the pandemic, but e-commerce sales overall have spiked in 2020. For the first half of the year, worldwide e-commerce revenues grew 16.5%, with many regions of the world registering higher sales growth. While most of the growth came from essential items such as food and household cleaning supplies, buyers are not limiting themselves to these items. The more people spend time in their homes the more they may want to add comforting elements such as scented candles to their online shopping carts. In the United States, online shopping records were set on Thanksgiving Day, Black Friday, and Cyber Monday, while in-store traffic on Black Friday was down more than 50%. Many people who used to buy holiday gifts, including scented candles, at brick-and-mortar establishments were opting to do all or most of their holiday shopping online this year.

North America claimed 35% of the market in 2018. Before the pandemic, this region was expected to continue to garner a large share of the market through 2025 due to the increasing number of spas, wellness centers, and massage therapy establishments. According to IBISWorld, the number of health and wellness spas in the United States grew from 17,829 in 2012 to 20,067 in 2019. However, the number dropped to 19,733 in 2020. Revenues dropped 7.7% from 2019 to 2020. For those that are still in business, temporary shutdowns and strict health department guidelines due to the COVID-19 pandemic are impacting the number of customers served. It’s likely that these types of businesses have been impacted similarly throughout the region, limiting demand for scented candles in this sector. The Asia-Pacific region is expected to experience the highest growth through 2025 as the popularity of gifting scented candles grows in countries such as China, India, Japan, Thailand, Australia, and New Zealand. Several major global manufacturers of scented candles include Newell Brands,³ KORONA Candles Sp. z o.o., Gala-Kerzen GmbH, The Very Good Candle Co., Goose Creek Candle, The Copenhagen Candle Company Ltd., Broken Top Candle Co., Bridgewater Candle Co., and Kringle Candle Co.

¹ At hypermarkets, supermarkets, convenience stores, and online.
² “Scented Candles Market Size, Share & Trends Analysis Report by Product (Container Based, Pillars), by Distribution Channel (Hypermarket & Supermarket, Convenience Stores), by Region, and Segment Forecasts, 2019 – 2025,” Grand View Research Report Summary, January 2020 available online here.
³ Brands include Chesapeake Bay Candle, WoodWick, and Yankee Candle.

Sources: “Scented Candles Market Size, Share & Trends Analysis Report by Product (Container Based, Pillars), by Distribution Channel (Hypermarket & Supermarket, Convenience Stores), by Region, and Segment Forecasts, 2019 – 2025,” Grand View Research Report Summary, January 2020 available online here; “Scented Candles Market Size to Reach $545.2 Million by 2025 | CAGR: 8.4%: Grand View Research, Inc.,” CISION PR Newswire, January 28, 2020 available online here; “History,” National Candle Association available online here; “8 Farolito Photos to Brighten the Holiday,” The Santa Fe Travel Insider, December 8, 2015 available online here; “A Short History of Scented Candles,” Ashleigh & Burwood, March 18, 2019 available online here; “Candle Market Size, Share & Trends Analysis Report by Product (Votive, Container, Pillars, Tapers), by Wax Type (Paraffin, Soy Wax, Beeswax, Palm Wax), by Distribution Channel, and Segment Forecasts, 2019 – 2025,” Grand View Research Report Summary, July 2019 available online here; “How COVID-19 Has Transformed Consumer Spending Habits,” J.P. Morgan available online here; Alexandra Samet, “Ecommerce Sales Will Decelerate This Year Globally — But Certain National Markets May See Success,” Business Insider, July 22, 2020 available online here; Melissa Repko and Lauren Thomas, “Online Sales Reach $10.8 Billion on Cyber Monday, the Biggest U.S. E-Commerce Day Ever, Adobe Says,” CNBC, December 1, 2020 available online here; “Health & Wellness Spas in the US – Number of Businesses 2005-2026,” IBISWorld, June 30, 2020 available online here; “Health & Wellness Spas in the US – Market Size 2005-2026,” IBISWorld, June 30, 2020 available online here; Lauren Thomas, “Black Friday Shopping in Stores Craters 52% During Pandemic as E-commerce Sales Surge,” CNBC, November 28, 2020 available online here.
Image source: Untitled photo by Hanna Balan on Unsplash, April 22, 2020 available online here. Use of image does not constitute endorsement.