THE CANDLE MARKET
The use of candles for aesthetic reason, especially for home décor, became popular in the 1990s and since then its purchase for the same reason has been on the increase. More and more use of candles have been adopted by individuals due to its aesthetic-appeal and therapeutic benefits. Due to this, the market for the production of candles has grown larger than it used to be when candles were used just as a source of light. Spas and massage centers, restaurants, household, religious bodies are the major patrons of the candle market. As more people are developing interest in candles and using them, so are candle manufacturing companies increasing. Only in the US, there are over 400 candle manufacturing companies, employing a total of about 7,000 direct employees.
Varieties of candles
Candles come in variety of shapes, sizes, colors, and scents. These varieties offer consumer a wide range of options which are mostly aesthetic. Candles are mostly sold for their aesthetic values. They are used for decorative purposes (considering their shapes, colors and sizes) and also for the scent they give (in the case of scented candles). Over 10,000 candle scents are available to consumers. Also, there are a wide range of color options consumers can pick from.
Candles are primarily sold in specialty/gift shops and home décor stores. Most of their sales occur during the holiday periods, most especially Christmas holidays. About 35% of the annual sales of candles are made during holiday periods. During holiday periods they are given out as presents mainly due to the aesthetic value they provide. People consider candles as highly appreciated gifts especially for holiday gifts, house warming, dinner party gift, appreciation gift and also as an adult birthday gift.
It is safe to conclude that the major factors affecting the sale and purchase of candles is their scent, color and shape. Another factor that can be added to the list is price. The retail price of most candles is generally between $0.50 and $1.99. A luxury jar candle can go for as high as $200- or even more. According to statistical data, scent is by far the most important factor affecting the purchase of candles in recent times. This is due to the ever increasing need for candle in home décor as well as in aromatherapy.
CANDLE MANUFACTURING INDUSTRY
The candle manufacturing industry is worth millions. It may not seem like, but it is a big industry. The candle industry in the US uses more than 1 million pounds of wax in a year for manufacturing candles used only in the US. Most of the candle manufacturing companies are privately owned. Hence, the exact value of the market may not be known. According to the National Candle Association in the US, retail sales of candles product can be roughly estimated at $3.14 billion annually. Some other sources even think this value is far smaller than the real market capitalization of the candle industry.
The candle market in North America, especially in the US is the largest and thus, makes the most profit.
Scented candle industry
The scented candle market although not the largest candle market is arguable the fastest growing candle market. It has an expected growth rate of about 6% annually. This is due to the increase in the awareness on its use. The increasing use of eco-friendly home products is also a factor expected to boost the demand for scented candles as most scented candles are made with eco-friendly ingredients instead of synthetic ones- Soy wax over paraffin wax and natural essential oils over synthetic ones.
Scented candles come in different forms; they can be in containers or they can also stand-alone as pillars. The sales of container candles, many of which are luxury candles is gradually on the increase. Read about the most popular candle fragrances.
PROFITING FROM THE CANDLE INDUSTRY
Candle manufacturing is a highly lucrative business. The profit margin on candles is very high; making it is also very easy. To start making candles for sale, just like other manufacturing businesses, you would have to consider some costs. These are the likely areas you’d need to spend money before going on to make lots from selling your manufactured candles. They include:
- Cost of raw materials: after you must have decided on the kind of candle you’d like to produce, the next thing to consider is sourcing for raw materials. After the raw materials must have been sourced, the next thing to look into is the price. Carefully consider the price of the raw materials. It would behoove you to get raw materials of relatively low cost, as you may not want to start with producing luxury candles
- Research and development: before starting off the candle business, it is necessary to carry out some research. These researches cost money, as you may want to try many things out to come up with your perfect formula.
- Utility bills: in the cause of processing you’d need light and other utilities. You should carefully draft out the cost spent on obtaining utilities
- Packaging: packaging is also very important. There are various good candle brands out there. For you to stand out from them all, you’d need a unique and attractive packaging.
- Taxes: on the long run you may need to pay tax. These too are cost incurred during candle making.
The above and some other costs are what you should consider before starting out a candle manufacturing business. They should also be considered when fixing prices for the sales of your candles.
Also, one can make money retailing candles made from popular manufacturers. There are a wide variety of candles one can sell to make good profit once the market is well understood. Candles like pillar candles, floating candles, votive candles, and tea candles are candles that have a good market demand. Even specialty candles like hand rolled candles, hand-dipped candles and sand candles are not left out.
The candle industry makes a lot and is a good industry to profit from via manufacturing and retail