Is Candle Making Profitable In 2023?

Interested in candle making business? Wondering is candle making profitable? You have landed on the right page!

There has been a surge in the demand for candles. Candles are no more just needed to light up a dark room; more than anything, it has become a staple for aesthetics today.

Either way, the rise in candle demand is a great opportunity for those interested in starting their own candle-making business.

In this article, let us explore the cost, pros and cons, profit margin, etc., of this business.

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The Candle Making Industry

The increased interest in home decor has surged the demand for candles in recent years.

Today, candle business owners offer candles in a variety of fragrances, unique shapes and sizes, and even wax material, for that matter.

To meet the aesthetic demands of the customers, candle business owners sell candles that look like human figures, bubble candles, and pumpkin candles; the list is endless.

According to Market Data Forecast, the candle market is valued at $7,562.83 Million today and is expected to grow by 5.26%, reaching $10,156.05 Million by 2028. As such, starting this business might be a good opportunity for you.

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Different Types of Candles

You can sell a whole range of candles depending on your target market’s taste and preference. Not sure where to start?

Here’s a whole list of different types of candles that you choose to sell:

Soy Candles

Soy candles are made from soybeans, so it is a vegetable-based candle as opposed to paraffin or wax candles.

This type of candle is quite popular because it has a low burn time and lasts very long.

The soy wax segment is expected to grow by 8.5% from 2019 to 2025 and might be a great category to start with.

Vegan candles

With the rise in veganism, consumers are looking for candles that are not made of animal ingredients.

Basic candles contain ingredients like beeswax, which is not desirable for vegan people. And this is where the vegan candle comes in.

These types of candles are made from natural or plant-based ingredients and with natural fragrances, fragrance oils, etc.

Scented Candles

Scented candles are the most common type of candles. Whether homeowners want to create a fresh atmosphere or simply want to mask odors, these types of candles are ideal.

Scented candles come in a wide variety, right, from common fragrances such as lemon or lavender to more luxurious scents such as musk.

Decorative Candles

Candles today have become a staple for statement, and homeowners are digging for brands that offer candles with aesthetic shapes, colors, and patterns.

These type of candles are very much in demand today and can be sold for a higher price just because of the uniqueness it offers.

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How Much Does it Cost To Start a Candle Business?

Starting a candle business might cost you anywhere between $9,500 to $78,000, with the average cost being $44,000.

Compared to other businesses, the candle-making business requires lesser investment.

The major cost in this business goes towards rent if you decide to rent out a place for making or selling candles.

In order to launch your candle business, you will need a variety of equipment and materials, such as:

• Aluminum melting pitcher
• Glass thermometer
• Aluminum pouring pot
• Wick bars and holders
• Fragrance materials
• Molds, wax, wicks
• Scale
• Clothespins
• Measuring cup(s)

Additionally, you might also have to bear some expenses such as:

Expense	Price	Average Price
Equipment	$90 – $110	$100
Labels and shipping costs	$80 – $100	$90
Initial inventory and supplies	$360 – $440	$400
Licenses and permits	$110 – $130	$120
Insurance	$200 – $400	$300
Signage	$100 – $200	$150
Website	$100 – $300	$200
Total	$1,040 – $1,680	$1,360

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Profit Margin in Candle Business

The profit margin on candles can be really high, ranging between 30%-50% on average.

The total earnings from your candle business depend on your level of production.

For example: if you are selling candles for $12 each right from your home, and it costs you only $6 to make it, then you make $6 from each sale of candle, and your gross profit margin is 50%.

So in the first year of your candle business, if you sell 500 candles a month for $12 each, then your gross sales would be $72,000 a year, bringing you a total profit of $36,000 (assuming a 50% profit margin).

As your brand gains more recognition, your sales could jump to 1,500 candles a month. At this point, you might hire employees and rent out a space, which will reduce your profit margin to 40%.

Even so, you can make $216,000 in annual revenue and get to make a tidy profit of approximately $130,000.

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Is Candle Making Profitable?

The cost of an eight-ounce candle comes to around $3, and it can be sold for $10-$15 easily; so yes, candle making business is quite profitable.

In fact, according to ZipRecruiter, candle business owners make anywhere between $37,500 to $91,500 annually, with the average being $55,971.

Also, once your candle business gains some recognition, you can even launch some high-end candles with fancy packaging, shapes, and color and charge a high price for them.

This might allow you to enjoy a profit margin of as much as 75% even.

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Pros & Cons of Candle Making Business

Pros of Candle Making Business

• Low start-up cost
• Simple business model
• Flexibility
• Profitable
• Scalable

Cons of Candle Making Business

• Trust building requires time
• Highly competitive

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How To Start a Candle Business?

In order to start a successful candle business, you must have a solid business plan in hand. Here’s how you can start your own candle business in six simple steps:

Access your target audience

Before selling your product, you need to find out who you want to sell your product to.

This is the first step in building your candle business, as your product and pricing would be dependent on who your target audience is.

In the candle-making industry, the markets are usually segmented into three factions: mass market, mid-market, and high-end.

• Mass market: In this, you sell easily accessible and affordable candles. The best example of this is Bath & Body Works. Most candles in this category offer standard fragrances such as vanilla, citrus, etc., and cost between $8 to $19 per product.
• Mid-market: In this type of segment, you get to see mid-range candles with distinct scents such as rose, cedar, basil, etc., and often cost between $20 and $39.
• High-end: As the name suggests, this includes luxury and premium candles that are made from the best quality ingredients. High-end candles usually cost between $40 to $80, and some brands, such as Louis Vuitton, even sells them for $185.

Determine your niche

The next step in starting your candle-making business is determining your niche.

For this, you would have to figure out the kind of candles you want to sell, such as soy, was, vegan, etc. Do you want to sell fragrance, non-fragrance, or both kinds of candles, etc?

You might want to then figure out if you want to sell home decor candles, candles with crystals, etc.

Calculate start-up cost

As already shared in the article above, the start-up cost for a candle business is $9,500 to $78,000. So you must figure out your candle business’s start-up cost.

If you start this business right from your home with modest products and sell your candles online, then it might cost you on the lower side.

However, if you decide to rent out a space for manufacturing and selling candles, then that might cost you on the higher end.

Set up a pricing structure

Once you figure out the start-up cost, the next step is to set up a pricing structure for your candles.

Initially, you might want to keep your prices low to attract more customers. Also, you must ensure that your pricing is at par with your target audience.

You can easily add a profit margin of 30%-50% for each candle while setting up the pricing structure.

Start making candles

Candle making is an art, and to make candles that last long and emit beautiful fragrances, you have to understand how different types of wax work at different temperatures.

Once you figure that out, making candles will be a cup of tea for you. You can attend workshops or get in touch with a candle-making expert to learn about the basics of candle-making.

Once you learn how to make candles, the next step is to create eye-catching packaging and create an account on the marketplace, such as Shopify, Instagram, etc., to sell your candles.

After you start getting enough customers, you can create a website for easy order placing and processing.

Advertising

The last and most crucial step in creating a candle business is advertising your product.

For this, you can use social media marketing which is cost-effective and allows you to reach your target audience specifically.

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How To Make Candles At Home?

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Tips to Make Your Candle Business Profitable

Here are some valuable tips to make your candle business profitable in no time:

1. Sell luxury candles at a low price initially.
2. Make great use of the holiday season.
3. Promote your candles on Pinterest and Instagram.
4. Make connections with local candle suppliers.
5. Buy from wholesale suppliers for a better profit margin.
6. Try coming up with unique fragrances and designs.
7. Choose between soy wax and paraffin wax.
8. Create custom packages for functions.
9. Create eye-catching packaging.
10. Invest in social media marketing.

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Wrap Up

With the rising demand, low start-up cost, and good profit margin candle making business might be a good business opportunity for you.

Although this business sees a lot of competition because of the low barrier to entry, if you learn to differentiate your brand and gain customers’ trust, this business might be very profitable and successful for you.

In this article, is candle making profitable? We gave you a complete overview of this business; we hope you found it helpful.

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FAQs

What type of candles sells best?

Some high-demand and popular candles includes soy candles, decorative or artisanal candles, natural or organic candles and seasonal or themed candles. 

Is it easy to make candles?

Yes, candles are generally considered easy and inexpensive to make. Once you get the idea of temperature and fragrance, half the job is done.

How much do candles cost in the market?

Different types of candles have different price; Janky candles are sold for $1.99 each, while luxurious and high-end candles are sold for $299 each in the market.