Europe, Middle East & Africa Outdoor Candle Market Size, Share & Trends Analysis Report By Wax Type (Paraffin, Soy), By Distribution Channel (Online, Offline), By Country, And Segment Forecasts, 2021 - 2028

Report Overview

The Europe, Middle East & Africa outdoor candle market size was valued at USD 459.6 million in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 3.9% from 2021 to 2028. The high demand for outdoor candles as a means of enhancing the aesthetics and ambiance of outdoor 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 capture new customers and retain existing ones. Over the past few years, there has been a rise in the commercial utility of outdoor candles, with numerous spa and massage centers using scented candles for a soothing effect.

The popularity of outdoor spas and aromatherapy can be attributed to the growing trend of consumers wishing to connect to nature and the outdoors, thereby generating strong product demand. Candle therapy, for instance, has been gaining much popularity as these products are known to relieve back pain, osteoarthritis, headache, and anxiety. In addition, restaurants and fine dining spaces have been increasingly using the products to create a beautiful and aromatic ambiance.

Outdoor candles have a great significance in celebrations, religious ceremonies, get-togethers, and festivals. They not only provide lighting and create a beautiful ambiance for the festival season but can also have a calming effect on the mind. According to a blog post by Affiliate UNguru, 35% of all candle sales take place during the Christmas season. Moreover, theme-based outdoor parties, events, and weddings have been contributing to the product demand.

The rising number of spas and wellbeing centers across the EMEA region is also driving the growth of the market. Increasing investments by resorts and hotels in outdoor spa treatments and other wellbeing facilities are presenting an opportunity to the market. For instance, the Lepa Vida Thalasso Spa in Slovenia offers traditional outdoor thalassotherapy. The treatment involves mud from salt pans, swimming in brine, a sea-salt peeling treatment, and hand massages at the Sečovlje Salt Pans.

The rising demand for indoor and outdoor air fresheners during the pandemic to create new and luxurious settings at home has positively impacted the market growth. According to May 2020 data from the NPD, the sales of prestige candles rose 6% in the U.K., compared to the same month in 2019. Candles infused with blends of essential oils, especially the ones that are known for elevating the mood like sandalwood, lavender, ylang-ylang, and patchouli, also have high demand.

The ongoing crisis has also driven the demand for candles at religious places, memorial services, and community gatherings. For instance, in March 2020, a large group of people in France expressed their grief and support in the fight against coronavirus by lighting candles. Similarly, according to data from the Robert Koch Institute, a German woman has been lighting a candle in her garden for every person who died from Covid-19 in Germany. On May 19, 2020, she lit nearly 8,000 candles. Such practices and gestures are likely to spur the uptake of various types of candles.

Distribution Channel Insights

The offline distribution channel segment led the market with a revenue share of over 79% in 2020. Offline channels include hypermarkets/supermarkets, convenience stores, and specialty stores. The overall growth of this segment will be slow in the coming years owing to the factors, such as long billing lines, the rapid growth of e-commerce, and rental cost rise.

The online segment is estimated to witness the fastest CAGR of 4.9% from 2021 to 2028. The online distribution channels include aggregators as well as manufacturer-hosted e-commerce sites. Manufacturers have realized the potential of online sales channels and thus, host their shopping websites to better cater to customer needs and improve profit margins.

Third-party sellers sell products of major manufacturers as well as local producers. They excel by establishing a strong supply chain that extends geographical borders. Thus, when customers want to buy from international players that might not be available in a certain country, third-party suppliers offer the perfect solution.

Wax Type Insights

The paraffin wax type segment dominated the market with a share of over 75% in 2020. The segment is estimated to grow steadily during the forecast period. However, the soy wax type segment is expected to register the fastest CAGR of 4.6% from 2021 to 2028. The demand for soy wax-based outdoor candles is increasing mainly because they are completely plant-based, have a lower melting point, and have a stronger fragrance than paraffin wax.

Soy wax is derived from soybean. It is a hydrogenated vegetable that solidifies at room temperature. Soy wax does not contain anything artificial, which makes it a better alternative to paraffin wax. This wax type is eco-friendly, which makes it a renewable resource. These factors are fueling the demand for soy wax-based products, thereby supporting the overall market growth.

Country Insights

Germany led the regional market in 2020 with a revenue share of over 25.0%. Substantial infrastructure and economic developments have resulted in revenue generation in the region. The demand for artisanal candles is on the surge. Consumer demand for hand-poured and designer candles for better aesthetic appeal will also drive the market growth in the country.

The market in South Africa was valued at USD 23.6 million in 2020 and is projected to register a CAGR of 3.3% over the forecast period.The market in this country is highly fragmented. People in South Africa use outdoor candles as an alternative to electric lightings, such as fairy lights. The market is an oligopoly in South Africa. Price’s Candles, a subsidiary of Sasol is one of the largest players in the region. Decorative and scented candles are gaining prominence in urban areas of South Africa owing to the increase in disposable incomes of the population.

South Africa’s domestic demand is sustained by exports. Annually, the country exports more than 5000 tons of candles. In 2019, South Africa’s candle exports stood at USD 9.7 million and 5,352 tons. The majority of its exports go to Botswana, Angola, Zimbabwe, Eswatini, Lesotho, and Namibia

Key Companies & Market Share Insights

The market is characterized by the presence of various well-established players. The market players face stiff competition from each other as some of them are among the top manufacturers and have a large customer base. In 2020, Yankee Candle partnered with Ordergroove, a relationship commerce provider, to create a new subscription box program and to establish an ongoing customer relationship versus one-off sales, giving the company more predictable recurring revenue. Some of the key companies in the Europe, Middle East & Africa outdoor candle market are:

• The White Company

• Stennah & Hope Ltd.

• Scent Perfique

• Duffy and Scott Candlemakers Ltd.

• Engles Kerzen

• Gala Group GmBH

Europe, Middle East & Africa Outdoor Candle Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at regional and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2028. For the purpose of this study, Grand View Research has segmented the Europe, Middle East & Africa outdoor candle market report on the basis of wax type, distribution channel, and country:

• Wax Type Outlook (Revenue, USD Million, 2016 - 2028)

  • Paraffin Wax

  • Soy Wax

  • Bees Wax

  • Palm Wax

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)

  • Online

  • Offline

• Country Outlook (Revenue, USD Million, 2016 - 2028)

  • Germany

  • U.K.

  • France

  • South Africa