07.08.23
The scented candles market size is set to grow by $758.8 million from 2022 to 2027, progressing at a CAGR of 3.46% during the forecast period per Technavio.
The report offers an up-to-date analysis regarding the current global market scenario, the latest trends and drivers, and the overall market environment. The increasing investment in household interiors is the major factor driving market growth. Increasing disposable income, rapid industrialization, rising urbanization, growing employment and a progressive increase in investments are the major factors that are promoting new residential construction activities. However, sustained political support in the form of affordable loans and tax waiver schemes also plays a vital role in driving the demand for new houses. Therefore, investment in household interiors has also been increasing.
A Key Role in Growing the Aesthetic Appeal
Scented candles play a key role in growing the aesthetic appeal of residential interior designs. Many countries have made sustained progress toward eco-friendly housing that delivers the lowest usage of energy in recent years. For example, the Sierra Crest development in Fontana, California, has developed 20 residential buildings which use renewable energy such as solar and strive to become the foremost "zero net energy consumption" community in California. Such an initiative may further boost the demand for eco-friendly home decor products, including scented candles.
The expansion of the e-commerce market is an emerging trend driving market growth. The growth of the e-commerce market and globalization and liberalization policies have simplified world trade and led to the rising trend of B2B and B2C business. Globally, advances in technology, coupled with growing Internet penetration, have enhanced online purchases and sales of goods and services. The growth potential of the e-commerce market has intensified due to the gradual shift in customer spending and shopping habits. Moreover, the growth of information and communication technology, artificial intelligence, and other modern technologies has extended the customer base, thereby creating lucrative growth prospects for key market vendors. The advent of social media, increasing Internet penetration, and the growing adoption of smartphones are the other important factors that have allowed reliable access to a wide range of products and have benefited customers who prefer the best in-home decor, including scented candles.
Stiff Competition from Unorganized Sector
The major challenge impeding market growth is the stiff competition from the unorganized sector. Generally, the market is comprised of two segments, namely, the organized and unorganized sectors. The organized sector mainly consists of big retailers or manufacturers that have the required permits and follow stringent rules and regulations. While the unorganized sector comprises small retailers or manufacturers that are not registered with the government. Therefore, the scented candles market is highly fragmented and unorganized. Moreover, venturing into a candle-making business does not need huge capital or investment and this promotes small enterprises or small retailers to enter the business and leads to the expansion of sub-standard or duplicate products. Prominent candle manufacturers face severe competition from local, unorganized players that offer non-standardized products at very lower prices. This impedes the competitive scenario in the market as established candle manufacturers are forced to lower the price of their products, which eventually affects their profit margins and sales volume.
Scented Candles Market 2023-2027: Market Segmentation
The market share growth of the offline segment will be significant during the forecast period. Specialty stores, hypermarkets, supermarkets, convenience stores and clubhouses as well as department stores are among the revenue streams generated through an offline distribution channel. For the purpose of generating sales through offline channels, players are expanding their stores in local and regional markets. Also, scented candle producers sell their products in specialty stores and different forms of retailing, increasing competition in the market. Retailers are introducing new businesses, wider assortments, pricing and retail strategies to remain competitive. Such initiatives will increase segment growth during the forecast period.