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Written by Elma Steven | Updated on July, 2024

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Find Out- Is Candle Business Profitable?

The profitability of your Candle business depends on 4 important factors: Industry Prospects, Investments, Revenue Sources, Cost and Profitability. We have taken a deep dive to find out potential profitability from the Candle business. 

Candle Industry Prospects

The global candle market size was valued at $17.3 billion in 2023 and is expected to register a compound annual growth rate (CAGR) of 5.7% from 2023 to 2030 (grandviewresearch). Another source indicates that the global candle market is valued at $ 6.37 billion in 2022 and is projected to reach a value of $10.30 billion by 2030, with a compound annual growth rate (CAGR) of 6.20% over the forecast period (vantagemarketresearch). The US Candle Business market size in 2023 is projected to be approximately $13.44 billion. This figure is in line with the overall growth of the Candle Manufacturing industry in the US, which has seen an average annual growth rate of 1.7% between 2018 and 2023. The US market is a significant contributor to the global candle market, which was valued at $12.88 billion in 2022 and is expected to register a compound annual growth rate (CAGR) of 5.7% from 2023 to 2030.


  • Wax Melting Equipment: Investment in wax melting pots or industrial wax melters, depending on the scale of your production.
  • Molds and Containers: Purchasing various types and sizes of molds for shaping candles and containers for container-based candles.
  • Raw Materials: Initial bulk purchase of raw materials such as wax (paraffin, soy, beeswax), wicks, fragrances, dyes and other additives.
  • Workshop Fit-Out: Costs for setting up a production area, which may include worktables, shelving, storage units and ventilation systems.
  • Packaging Equipment: Equipment for packaging finished candles, which might include label printers, shrink wrap machines and boxing materials.
  • Safety Equipment: Investment in safety equipment like fire extinguishers, first aid kits and personal protective equipment for handling hot materials.
  • Point of Sale (POS) System: For a retail storefront, systems for managing sales, inventory and customer transactions, including cash registers, card readers and software.
  • Retail Space Fit-Out: If you’re opening a retail store, costs for interior design, display units, shelving and signage.
  • Office Equipment and Furniture: Desks, chairs, computers and other office supplies for administrative tasks.
  • Signage and Branding: Costs for external and internal signage, branding and marketing materials.
  • Initial Marketing and Advertising: Costs associated with promoting your candle business, including website development, social media setup and promotional events.
  • Legal and Professional Fees: Costs for legal, accounting and consulting services, including business registration and intellectual property protection if needed.
  • Research and Development: Costs incurred in experimenting with different candle types, scents and formulations.
  • Transportation Vehicle (if needed): A vehicle for delivering products to stores or customers if you plan to sell your candles wholesale or online.

Budgeting for these CapEx items is crucial for the successful launch of your candle business. It’s important to carefully plan and consider the long-term sustainability of these investments.


  • Direct Sales of Candles: Selling candles directly to consumers either through a physical store, online store, or at markets and craft fairs.
  • Wholesale Orders: Selling candles in bulk to retailers, boutiques, or gift shops at a wholesale rate.
  • Custom and Personalized Orders: Offering custom-made candles for special occasions like weddings, corporate events, or personalized gifts, which can be priced at a premium.
  • E-commerce and Online Marketplaces: Selling candles through your own e-commerce site or on online marketplaces like Etsy, Amazon, or eBay.
  • Seasonal and Limited Edition Collections: Creating and selling seasonal or limited edition candles, which can attract customers looking for unique or timely products.
  • Candle-Making Workshops: Hosting workshops where individuals can learn how to make candles. These can be a source of revenue and also a marketing tool for your products.
  • Subscription Services: Offering a subscription box where customers receive a new candle or a selection of candles every month.
  • Corporate Gifting: Providing candles for corporate gifting purposes, which can be a significant order during holidays or corporate events.
  • Collaborations and Partnerships: Collaborating with other businesses or influencers for limited edition candles or cross-promotional efforts.
  • Merchandise and Candle Accessories: Selling related merchandise like candle holders, snuffers, or decorative matches alongside candles.
  • DIY Candle Kits: Offering DIY candle-making kits for customers who want to make candles at home.
  • Event Sales: Participating in local events, fairs, or exhibitions to sell your candles.
  • Scented Product Expansion: Expanding your product line to include related scented products like diffusers, room sprays, or scented wax melts.

Diversifying your revenue streams can help stabilize your income and make your candle business more resilient to market changes. Continuously assessing customer interests and market trends will help you adapt and find the most lucrative opportunities.

Cost of Goods Sold

  • Wax: The cost of the wax used in making the candles, which could be paraffin, soy, beeswax, or other specialty waxes.
  • Wicks: The cost of wicks that are essential for every candle.
  • Fragrances and Dyes: Costs for any scents or coloring agents used in your candles. These are variable depending on how many scented or colored candles you produce.
  • Containers and Holders: If you are making container candles, the cost of containers like jars, tins, or glasses.
  • Packaging Materials: Costs for packaging the candles, which may include boxes, labels, wrapping paper and protective materials for shipping.
  • Shipping and Handling Costs: If you are shipping your candles to customers or stores, the costs for freight and shipping materials.
  • Payment Processing Fees: Fees associated with processing customer payments, typically a percentage of the sale price.
  • Direct Labor Costs: Wages for labor directly involved in the production of the candles. If you employ staff to help with making candles, their wages during production hours are part of COGS.
  • Waste and Spoilage: Costs associated with any materials wasted or spoiled during the production process.

Efficient management of COGS is crucial for your candle business’s profitability. This includes optimizing your production process to minimize waste, careful inventory management and prudent purchasing of raw materials. Keeping COGS under control can help improve your gross margin and overall financial health of the business.

Operating Expenses

  • Rent or Mortgage Payments: Regular payments for the space where your candle business operates, if applicable.
  • Utilities (Fixed Costs): Basic utilities like electricity, water and gas, not directly linked to the production of candles.
  • Insurance: Business insurance costs, which may include liability insurance, property insurance and product liability insurance.
  • Salaries for Permanent Staff: Wages for your full-time employees, such as administrative staff, sales personnel and possibly a store manager.
  • Marketing and Advertising: Ongoing costs to promote your candle business, including digital marketing, social media advertising, print materials and participation in craft fairs or markets.
  • Professional Services: Fees for ongoing professional services like accounting, legal advice and consulting.
  • Office Supplies and Equipment: Regular expenses for office supplies and any equipment necessary for running the administrative side of your business.
  • Technology and Software Subscriptions: Expenses for software used in managing your business, such as inventory management systems, customer relationship management (CRM) software and accounting software.
  • Maintenance and Repairs (Fixed Portion): Costs for routine maintenance and repairs of business equipment and facilities, not directly related to candle production.
  • Depreciation of Assets: This includes the depreciation of long-term assets such as production equipment, furniture and fixtures over their useful life.
  • Taxes and Licenses: Costs for business licenses, permits and any applicable local, state, or federal taxes.
  • Loan Repayments: If you have financed your business or specific equipment, the monthly repayments are considered an operating expense.
  • Miscellaneous Expenses: Other costs that do not fit into the above categories but are necessary for the running of your business, such as bank fees or emergency repairs.

Efficient management of these operating expenses is crucial for maintaining the financial health of your candle business. Regular review and careful budgeting can help in optimizing these costs and improving your business’s profitability.

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