Candles fall under the cosmetics category. They must adhere to cosmetics guidelines for fragrance load, ingredients, safety, and applications. The fragrance load can only be between 6% and 10%.
Profitability and Selling Platforms
The profit margin for candles is 25% to 50%. An 8-ounce candle costs under $3 to make and sells for $10 to $15. Selling 100 candles weekly at craft shows can earn around $1000 monthly.
On Etsy, new candle businesses can get started selling online. U.S. candle labels need the business name and location.
Uses and Classification
Candles provide light, scent, decoration, and heat for events or religious ceremonies. Candles classified by purpose include decorative, scented, household, religious, and practical use. Decorative candles add style and atmosphere.
Candle Making Skills and Potential Earnings
Learning candle making fundamentals takes time like other skills. Wick type impacts results. Putting heart and soul into a proper candle business can generate $25,000 to $50,000 yearly income.
ASTM International sets some candle standards on fire safety, wicks, and containers. Most American households use candles, spending $3.2 billion annually on different shapes, scents, and colors. Choosing the right candle for an occasion can be overwhelming with so many options.
Home Fragrance and Retail Category
Candles fall under the home fragrance industry, including products like diffusers and wax melts. They also fall under the retail category of decorative home accessories or home decor. The candle making industry has evolved from a traditional craft into a thriving retail business.
Market Insights
The prime target market for candles is women with families. Top selling candle scents include vanilla soy, almond vanilla, and seasonal scents. Demand is increasing for decorative candles in homes and offices and for holidays like Diwali and Christmas. The global candle market is estimated to grow steadily through 2030.
Candles are considered cosmetics, and descriptors of candle scents are called “notes”: top, middle, and base notes. Affordable mass market candles target the most competitive industry segment. Approximately 35% of U.S. candle sales occur during the Christmas season.