Luxury Candle Market Size, Share & Trends Analysis Report By Product (Container, Pillar, Votive, Tapers, Others), By Wax Type, By Distribution Channel, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global luxury candle market size was valued at USD 497.7 million in 2022 and is anticipated to grow a CAGR of 10.1% from 2023 to 2030. The high adoption of luxury candles as a means of enhancing the aesthetics and ambiance of home spaces, especially among millennial households, is anticipated to drive the market. Beauty retailers, independent brands, and fashion houses have been Introducing innovative products to constantly attract new customers and retain the existing ones.

Candles make consumers feel at home since they instantly make a room feel warmer and more welcoming. Luxury candles significantly contribute to creating a positive and calm atmosphere. According to The Dubrovnik Times, in 2021, many people have started using candles as part of their self-care routines, since particular aromas have been proven to improve mood.

Moreover, candle-making is considered the biggest lockdown trend and has gained traction owing to social media platforms like TikTok, resulting in a 3,500% spike in searches for soy candle-making kits. In addition, Kathy LaVanier, CEO of Renegade Candle Company and a board member at the National Candle Association stated that overall U.S. candle sales have increased by 30% since the pandemic.

The market is primarily driven by the rising disposable income of the younger generations and their willingness to invest in home décor. While candles are observed to be less expensive than a bag or shoes, fashion houses are entering the market with eye-popping prices. For instance, Gucci launched two candle lines this year with products starting at USD 300. The fashion label’s Esotericum, XL feline head candle retails at a price of USD 790. Louis Vuitton, meanwhile, offers USD 185 candles with small leather handles. Designers like YSL and Margiela offer somewhat more affordable products in the USD 60 to USD 80 range.

Social media platforms such as Instagram are contributing to the growth of luxury candles. Indie candle brands like Homesick and Boy Smells, which may have been limited to a site like Etsy in the past, have risen to fame via social media with their sleek, minimalist packaging and savvy use of influencers. Notably, not only do millennials account for Instagram’s main user demographic, but they also spend twice as much on self-care rituals than baby boomers do.  

According to the Global Wellness Institute (GWI), the spa sector has been witnessing robust growth and is projected to amount to a value of USD 128 billion in 2022, with the top five markets being the U.S., China, Germany, Japan, and France. This immense potential of the spa industry-fueled primarily by the mushrooming of spas in these leading markets-is likely to serve as a substantial growth avenue for luxury candles in the coming years. Aromatherapy treatment is mainly done by means of essential oils like lavender oil, tea tree oil, peppermint oil, and lemon oil and there is a wide range of luxury candles in the market in these popular scents.

Product Insights

Based on the product, the container segment contributed to a larger market share of 55.4% in 2022. The growing demand for fall-themed and Christmas-season candles is driving the demand for container candles. According to the U.S. National Candle Association, over 35% of candle sales occur during the holiday season. Companies such as Bath & Body Works and Yankee Candle provide a wide range of holiday season container-based luxury candles in fragrances such as pumpkin spice, pine, warm embers, fresh mint, and gingerbread.

The pillar segment is forecast to grow with a significant CAGR of 10.5% over the forecast period from 2023 to 2030. Companies are offering pillar candles in different shapes and sculpture forms, which are made of soy or beeswax to attract consumers who prefer sustainable products. The use of such candles helps in instantly lighting up the place and offering depth to surfaces that lack décor. When purchasing pillar candles, consumers look for design, type of wax, texture, color, and shape.

Wax Type Insights

Based on the wax type, the paraffin wax segment contributed to a larger market share of over 35.5% in 2022. Paraffin wax is most commonly used for luxury candles as it is easily available and easier to work with when compared to other types of wax. The wax is widely used across several candle brands as it can hold high amounts of color and fragrance. The wax is also suitable for all kinds of molds and shapes, from pillar to container candles. However, growing concerns over sustainability are hampering the demand for paraffin wax. Several companies operating in the market are reducing their usage of paraffin wax as it can produce soot.

Moreover, the soywax segment is anticipated to grow with a significant CAGR of 9.7% over the forecast period. Soy wax candles offer slow burn and appeal to consumers who are looking for sustainable alternatives. Companies in the candle industry are constantly innovating and moving toward natural sources. Candle brands are using soy blends and essential oils to produce designer candles. The rise in soybean processing in the U.S. will strengthen the supply of soy wax to candle manufacturers. In 2021, Cargill invested close to USD 475 million in the processing of soy in the U.S. The company also announced the expansion of its soy processing plant in the country. Such efforts will fuel the demand for soy wax-based luxury candles over the forecast period. 

Distribution Channel Insights

Based on the distribution channel, the departmental stores segment contributed to a larger market share of over 48.9% in 2022. The popularity of department stores is increasing as they provide a wide array of luxury candles. Stores such as Walmart, Bed Bath & Beyond, and Bath & Body Works offer customers a wide range of luxury candles in a variety of shapes, sizes, price ranges, and scents. Candle buyers prefer department stores to make such purchases as these stores allow them to test a scent before making a purchase.

Moreover, the online segment is projected to grow with a significant CAGR of 10.6% over the forecast period. Social media channels such as Instagram and Etsy are sourcing luxury products from around the world and have become major hubs for the sale of luxury candles. There has also been a constant rise in the number of emerging brands launching their products on online channels such as Shopify and Squarespace. Brands such as Boy Smells and Homesick are offering their products on online channels to attract younger consumers.   

Regional Insights

Europe dominated the global luxury candle market with a revenue share of around 35.9% in 2022. Many popular luxury candle brands are based in Europe. Jo Malone London is one of the most expensive candle brands in the world. Jo Malone candles are generally sold in bulk with an average pricing of USD 485. Luxury candles are not just considered a commodity but more of a pleasant experience. The pleasant fragrances add value to people’s lives and help them relieve stress and anxiety. The cold climate of many European countries is another factor contributing to the growth of the market. 

Asia Pacific is forecast to grow with a significant CAGR of 9.4% from 2023 to 2030. The rise in consumer disposable income and the growth of the middle-class population are anticipated to drive the market for luxury candles in Asia Pacific. Younger consumers in the region are looking for enhanced services and retailers and are willing to invest in luxury goods such as candles and perfumes. The growing presence of e-commerce and social media channels is also supporting the growth of the market. For instance, the luxury brand Gucci has a healthy growth rate and a high-performance rate in Asia Pacific.     

Key Companies & Market Share Insights

The cosmetics industry is always changing and updating. In order to stay head-on in the market, players tend to launch new strategies more frequently. Key players are focusing on increasing investments in advertisements through social sites to increase awareness regarding cosmetics in the market.

• In October 2021, Diptyque Paris unveiled its Holiday 2021 collection, as part of the company's 60th-anniversary festivities. The line-up includes a limited range of scented candles adorned with golden lids.

• In June 2021, Jo Malone London introduced a range of candle and diffuser accessories inspired by kitsch porcelain miniatures. The collection is made of ceramic and crafted by the Staffordshire pottery company.

Some of the key players operating in the global luxury candle market include:

• Byredo

• Diptyque Paris

• Jo Malone London

• Fornasetti S.P.A.

• c.f.e.b. SISELY

• Eight & Bob

• LUMIRA Co Pty Ltd

• Le Labo

• Trudon

• Ellis Brooklyn

• Louis Vuitton

• Acqua Di Parma SRL

• Parfums de Marly

• Hermès

• Creed Fragrances

• Tom Ford Beauty

• Francis Kurkdjian (Maison Francis Kurkdjian)

• By Kilian (Kilian PARIS) 

Luxury Candle Market Report Scope

Global Luxury Candle Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global luxury candle market based on product, wax type, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Container

  • Pillar

  • Votive

  • Tapers

  • Others

• Wax Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Paraffin

  • Soywax

  • Beeswax

  • Palm Wax

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Stand-Alone Boutiques

  • Departmental Stores

  • Specialty Stores

  • Online

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa