Now, the $12.88 billion candle industry provides homes, spas, and workplaces with candles that have delightful fragrances and help create a serene atmosphere.

This flourishing sector allows retail businesses to tap into the luminous potential of the candle market by catering to consumer demand.

Segmentation in the Candle Market

The candle market is vast.

Therefore, understanding its different segments is pivotal to maximizing returns from this category.

Here are the popular products across different segments from this category that you should have in stock to cater to a wide range of customers and increase your sales:

Segmentation By Product:

Container Candles (Leads the market, Ideal for home décor, gifts, and restaurants)
Votives (Contributed to over 26.97% of the total revenue in 2022, Ideal for fostering a peaceful atmosphere)
Pillars (Ideal for table settings and outdoor events)
Tapers (Ideal for fine dining, religious events)

Segmentation By Wax:

Paraffin (Holds the majority share, Ideal for a myriad of candle designs)
Soy Wax (Ideal for green consumers)
Palm Wax (Ideal for premium markets)
Beeswax (Ideal for health enthusiasts and allergy sufferers)

Offering candles with varied melting points based on the wax type enhances the product variety.

Furthermore, as more consumers are attracted towards sustainability, retailers can appeal to eco-conscious consumers by stocking candles made of beeswax, soy, or other organic materials.

Segmentation By Sales Channel:

Predominantly, candles find their way to consumers through:

Gift shops.
Department and home decor stores.
Mass merchandisers like hypermarkets and supermarkets.

However, after COVID-19, a surge in online orders and increased homestays were observed. Thus, for retailers, strengthening their online presence is the key.

Other Products

Other types of candles that customers may be interested in buying and that you can consider including in your offerings are:

Stocking up on a wide range of products is a good way to diversify your offerings in this category to cater to different preferences of buyers.

Wholesale Candles: The Market Opportunities

Depending on their type and quality, candles can range from $1.99 for votives to $200 for artisanal designs, allowing significant markups.

However, these profits can be increased by tapping into the:

Gift Market

Candles are universally cherished gifts for numerous occasions.

According to the National Candle Association:

76% of candle purchasers view it as a perfect gift for holidays.
74% as a housewarming gift.
66% as a hostess/dinner party gift.
61% as a thank you.
58% as adult birthday gifts.

That's a fair share of percentages, right?

Therefore, you should have candles for different occasions like:

Important Days (Mother's Day, Father's Day, Teacher's Day, etc.)
Birthdays
Anniversaries
Homecoming
Other special events

Home Decor Market

80% of Americans use candles as home decor items and frequently burn candles in their living room, kitchen, and bedrooms.

The reason behind this is the multifaceted allure of candles, both visual and olfactory, is being used to transform spaces as it offers stress-relieving therapeutic benefits and elevates home decor.

Introduce home decor candles in your offerings to attract more sales!

Seasonal Demand

With candles enjoying unwavering popularity year-round and experiencing spikes during October-January.

There are multiple reasons behind this surge, i.e.,

Candle Day being celebrated on the first Saturday of December since the 16th Century.
Approximately 35% of candle sales occurring during the holiday season.

So, stocking up and running seasonal promotions during this time can be lucrative.

Strategies to Engage and Retain Customers

Although having an inventory ready is the most important thing, running a successful business is more than just about short-term goals like selling products.

Engaging your customers and providing them with a good customer experience is a long-term goal that should not be overlooked as they help you get:

Repeat Purchases
Positive Customer Reviews
Brand Loyalty
Referrals (word-of-mouth)
And much more!

So, here are a few ways you can provide a better customer experience:

Personalization

Offer bespoke candles via custom fragrances, shades, or packaging, appealing to consumers seeking items or gifts with a touch of their personality.

Subscription Boxes

Periodic candle subscription boxes, like monthly boxes, can ensure sustained business and maintain customer interest.

Workshop and DIY Kits

Capitalize on the burgeoning DIY trend by introducing candle-making kits or organizing

fun-filled workshops, fostering brand loyalty.

This can also be a great marketing opportunity to advertise your business.

Regulatory Guidelines

You need to abide by some rules and regulations to run a hassle-free candle business.

These regulations include:

Compliance with SA or BSCI-based social standards.
Having a WFTO certification as proof of fair trade.

Providing legally certified candle products frees you from penalization and helps you win over your customer’s trust.