4 Main Target Markets for a Candle Business

Are you looking into setting up your own candle business? According to research, the estimated growth of the candle industry is set at a CAGR of 2.8% between now and 2028. There are several driving factors for the candle industry including the growing utilization of candles within home decor, aromatherapy, and special occasion purposes. 

Just about everyone has bought a candle at some point in their life. It can be hard for a candle business owner to narrow down their ideal customer. It’s important for any business though to clearly define and identify their target market. This will help to focus marketing strategies and even help businesses to adjust to the needs and preferences of their ideal customer.

Selling candles requires a deep understanding of your customer. You might have brick-and-mortar stores where people come in, attracted by the scents wafting through the air. Alternatively, you might sell online, with a beautifully designed website and carefully written product descriptions that transport customers into the experience of each scent. Regardless of the platform, you must know who your customer is and how to attract them. From there, it’s all about to enticing them with the promise of a cozy evening or a refreshing morning, all encapsulated in a candle.

But for this article, let’s focus on who your customers are. There can be many types of target markets to focus on. In this article, we will delve into some of the most likely target markets of a candle business and discuss the characteristics and how businesses can provide for the needs of specific consumers.

 

The Nature of the Candle Selling Business

There are typically two types of candle businesses: candle makers and candle sellers. Makers, of course, produce the candles and sell them retail or wholesale. Candle sellers usually buy their products wholesale and resell them to their customers. Small candle makers tend to limit the variety of candles they produce. Conversely, retail candle sellers need to have a larger variety in order to attract customers with different tastes. Let’s look at the nature of the candle business from both sides.

1. Candle Maker

As a candle maker, you start your day in the workshop surrounded by a plethora of fragrances, the scent of essential oils hanging heavily in the air. Piles of wax – beeswax, paraffin, soy, or palm – wait to be melted, poured, and transformed into candles. Wicks, containers, and a dizzying array of colors and fragrances form an exciting palette for your day’s work.

Creating a new candle is an intricate process. You blend the wax, oils, and colors, making careful adjustments to achieve the perfect scent throw and burn time. It’s both art and science, requiring a sensitive nose and an analytical mind. The first flicker of a new candle’s flame is always a moment of anticipation and satisfaction.

2. Candle Retail Seller

But candle-making isn’t just about creating beautiful, fragrant products. It’s also about understanding the market. There’s a reason why you have a whole shelf of autumn-spiced candles in October and a line of tropical fragrances in summer. Customer preferences change with the seasons, trends, and even current events. Candle retailers offer candles to individuals looking for candles that fit their need. It’s your job to anticipate the changes in trends and seasons and reflect them in your product line and have the best selling items in stock.

Here are some of the most popular types of candles on the market:

• Soy candles
• Scented or aromatherapy candles
• Vegan candles
• Decorative candles
• Tea lights

 

Keys to Successfully Running This Type of Business

Customer service is also a major part of running a candle business. From answering queries about burn times and fragrances to addressing issues with orders, you must always be ready to assist with a friendly, professional attitude.

Running a candle business is not just about making and selling candles, though. There’s the unseen, yet necessary, work of sourcing materials, managing inventory, dealing with suppliers, and maintaining equipment. There’s the strategic work of pricing products, marketing them, and carving out your own niche in the market.

Managing finances is also a crucial part of the business. You need to keep an eye on costs, revenue, and profits, and make decisions based on these numbers. But despite the challenges, there’s a certain joy in running a candle business. 

 

Target Markets for Candle Business

 

1. All Income Brackets

A unique aspect of the candle industry is that it can be a luxury for consumers across all income brackets. Candles have a wide range in prices and can be sold for hundreds of dollars to just a few dollars. Candle businesses can choose to market only to high, middle, or lower-income customers or offer candle products that meet the needs of all three income brackets.

For higher-income clientele, providing unique candle shapes, emphasizing craftsmanship, and providing higher-quality wax products can all appeal to this market. This market would also be more inclined to purchase exclusive or one-of-a-kind types of candles for a higher price. For lower-income clientele, emphasizing the affordability and accessibility of your products will appeal to these customers. Offering 2-for-1 deals or other sales at different points in the year can help engage this market.

By offering candle products at different price points, businesses can expand their clientele and better market to each income bracket. Take advantage of using social media and influencer campaigns to showcase the versatility and accessibility of products to a wide audience.

 

2. Individuals Interested in Home Decor

One of the potential target markets of candle businesses is individuals who are interested in home decor. Candles can be a great decoration piece for spaces as they can make a space more cozy and homelike. Using candles for decoration is even more common during the holidays and the colder months of the year.

This group of people will likely be more focused on how the candle vase looks and if it aligns with their home decor. They will place more importance on the aesthetic design of the candle. Unique candle designs and candles that go with specific interior design styles will be a great hit in this market.

To cater to this market, businesses will want to make sure they have aesthetically pleasing product photos of their products to emphasize how their candles enhance living spaces. Designing collections of candles around specific interior design styles would also be beneficial when focusing on this market.

 

3. Individuals Looking to Purchase a Gift

Individuals who are looking to purchase a gift are another potential target market for a candle business. Often people look for thoughtful gifts, and since candles are associated with peace and well-being and with the wide variety of candles on the market, it’s a great go-to gift.

Candles work for a wide range of gift-giving opportunities and are on almost any gift guide. Candles designed specifically for holidays, birthdays, and special events would attract this target market. Also, adding a personalization option would also be a great way to cater to this group. For example, letting them customize the label.

An important part of marketing to this type of customer will be highlighting candles as thoughtful and universally appreciated gifts. Collaborating with local or online gift shops could also help reach this target market.

 

4. Persons Interested in Home Fragrance

Out of all of the types of home fragrance options out there, including sprays, diffusers, and wax melts, candles are still more likely to be purchased by individuals interested in home fragrance. That is why these individuals are another potential target market for candle businesses.

Women are more likely than men to purchase home fragrance products. Scents can be an important aspect of creating a specific ambiance in a home or space. This target market will want a wide variety of scent options. It will also be important to have a long-lasting fragrance. In this way, this audience is similar to the target market of soap business.

To cater to these individuals, businesses will want to provide diverse scents. Lavender, vanilla, lemon, citrus, rose, and jasmine are all popular scent choices. Highlighting the different aroma profiles of candles can be a great way to market to this customer. Aromatherapy has also grown in popularity. So, including the different benefits certain fragrance notes bring can also capture the interest of this group.

Conclusion

These target markets we’ve highlighted are a great starting point. It’ll be important to conduct market research on each group. By clearly defining the needs and desires of target markets, it makes it easier for a business to implement effective marketing strategies to reach its ideal customer and grow a loyal customer base. Understanding target markets will increase the success of any business, and highlighting the unique aspects of your candles will assure your candle business is thriving for years to come.

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