Since 2007, the candle market in the European Union has steadily increased in output. This is mainly due to the increase in consumption of candles in the region for several years in a row. In 2017 alone, the market experienced an additional increase of over a quarter-million dollars. This rate is so high that never had there been an increase of that magnitude in time past.
Had it not been for the recent pandemic (COVID-19) that has slightly affected the candle market in the EU, especially that of luxury candles like scented candles, the market is expected to have even a greater increase. This notwithstanding, the market has been projected to recover and still pick up the pace of growth in the coming years. Statistically, it has been shown that on average a European in the EU, must have purchased 1.55kg of candles from infant to great grandfatherhood.
The main increase for this high and ever-increasing rate in the supply (production) of candles in the EU is the demand.
DEMAND FOR CANDLES IN THE EU
The demand for candles in the EU and other parts of the world is going up. This rise in demand is due to reasons such as market trends. Due to this increase, there is an active need to meet the demand by the production of more and more candles. Currently, there is an increase in the number of people and companies involved in the production of candles. This is very evident at the extremes – homemade Chandlers that sell out their candles in small quantities and luxury candle companies that sell luxury scented prices at relatively expensive prices to those who can afford them. The US holds a large share in this market, accounting for a large chunk of the percentage of general production. But, as a region, Europe is the largest player in the candle-making market.
About 2-3rd of the total import of candles in the world is attributed to Europe. This also is due to the increase in demand for candles by the population.
One of the major causes of the increase in demand for candles in the EU is the market trend.
NEWMARKET TRENDS AFFECTING DEMAND OF CANDLES IN THE EU
1. Online marketing
The rate at which people consume luxury candles has now increased in recent times have increased. One of the major reasons for this increase is mainly because people are now more exposed to more attractive candle types online, especially luxury candles. This new market trend has increased the demand for candles especially among the Gen Ys
2. The quest for coziness by consumers.
With the recent rise in the rate at which people stay at home, – work at home – people are now sourcing for means of cozying up and feeling relaxed. People have been introduced to candles, especially scented candles, as means to meet those wants. There is a sudden increase in the rate at which people use candles for that reason. This, in turn, has added to the demand for candles.
3. Increasing awareness for the need for mental fitness
In recent years, more and more people have become aware of the need to stay mentally sound. They have also become aware of the use of scented candles for exercises that can help achieve it. This has also led to an increase in the number of candle consumers.
4. New trends in home decor
There are many recent improvements in home decor design features, especially with those relating to atmosphere and mood. Candles, with the different varieties they now come in, are capable of putting in place these design features. People now get candles simply because they wish to add to the shape, finish, scent, and color of their homes. This has also lead to an upsurge in the demand for candles.
5. Events and celebrations
Candles are now used for occasions and celebrations where they weren’t originally used. More people are now purchasing candles for this reason. They employ candles to brighten up their birthdays, dates, even dinner. Many people now use candles for their wedding decor to add color and light to their big day. Birthdays and tea-drinking dinners too are not left out.
6. Candles are now the new cool gifts.
Candles are now becoming popular as gifts. The fact that candles can be given custom, according to the scent and the color preference of the receiver making it a more perfect gift. More people are now opting for candles as their perfect gift items. For this reason, more consumers have added to the consumer-base of candles.
While all the above is what is attainable today, it might not be the reality in years to come. This is because there are a number of possibilities that may disrupt the rise in the demand for candles in the EU.
FACTORS THAT MAY LOWER THE DEMAND FOR CANDLES IN THE EU
1. Increased competition with lower prices.
In recent years, countries like China have proven to be great competitors in the candle market with producers in the EU, even in the EU. Even though these cheaper candles from these other countries are inferior, the bulk of the consumers prefer buying from them. If this continues, producers will be forced to reduce their rate of production. This, in turn, will lead to a decline in candle production in the EU.
2.Fluctuation in the supply and price of raw materials
The recent trends in fluctuations in the cost and supply of raw materials used in the production of candles in the EU may also be what would lead to a decline in the production of candles in the EU. This is because manufacturers prefer markets where there is stability in the prices of the raw materials they use for production.
3. Rising Production cost.
Rising cost of production may also lead to a decline in the production of candles in the EU. An increase in the cost of energy, labor, transport, logistics, operating material, and/or additives, etc., will lead to an increase in the price of candles. An increase in candle price will consequently lead to a reduction in demand. This will in turn force the manufacturers to reduce the production rate.