The size of the global scented candle market was valued at $3.45 billion in 2018, according to Grand View Research. The market for these candles have benefited from a significant increase since 2015 when it was valued at just $565.3 million. Consumers are interested in the aesthetics, and soothing qualities and smells of the candles, according to Grand View, which highlights “high consumption of candles as an aesthetic-appealing product among female millennials” as a factor driving growth.
Leading companies in this market include US companies Bath & Body Works, Better Homes and Gardens, MALIN + GOETZ, NEST New York, Village Candle, and Yankee Candle Company; French company Diptyque; and British company Jo Malone. North America comprises a significant portion of the market.
The COVID-19 pandemic has had a large impact on the scented candle market, with many indulging in this small luxury. American manufacturer Newell Brands, for example, reported a better-than-expected Q4, with a core sales growth of 12.4% — driven in part by the Home Fragrance business of this company.
On a broader scale, CNBC reported the findings of NPD Group, which tracks sales in department stores, showing an increase of 13% in home scent sales between January and September of last year, compared to the year before. The National Candle Association said its members had never experienced interest like they have had during the pandemic.
An increase in online orders has helped offset the difficulties faced by brick-and-mortar retailers. Yankee Candle was forced to close 77 underperforming stores in 2020, with additional closures predicted for this year.
Growth is expected to top $1.8 billion in the period from 2020 to 2024, in large part due to the pandemic. The market is projected to expand at a compound annual growth rate (CAGR) of 6% — a significant acceleration — for an overall positive market impact. Notably, North America is expected to contribute 43% of the growth. A separate report from Market Research Future puts the market’s 2024 value at $4.22 billion.
The COVID-19 pandemic has negatively impacted many industries, but the scented candle market is not one of them. The market is expected to grow by nearly half its value by 2024.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.