The candle market keeps on growing, driven by enthusiasm for well-being and home decor. Candles remain a go-to gift, and the alternatives (wax melts, diffusers, sprays and scented hanging ornaments) are winning over more and more people. It is a sector full of opportunities, and this may well be the ideal moment for you to get started, especially as online sales keep growing year after year. At Terre de Bougies, you will find everything you need to get started: raw materials, practical advice and tailored training.
The candle market in France and worldwide: a dynamic sector full of opportunities
The candle market is booming, driven by growing demand for home fragrance and well-being products. The sector offers great opportunities thanks to its steady growth and the wide variety of products on offer.
Promising potential, confirmed by the figures
The candle market continues to win people over. For several years now, the sector’s steady growth has reflected lasting enthusiasm among consumers. And for good reason: with growing awareness of well-being and the search for a pleasant atmosphere at home, scented candles have become a must. This trend is further boosted by the boom in online sales. Today, e-commerce platforms allow brands, even the smallest ones, to reach customers all over the world.
According to a recent study published by Businesscoot, the global market is expected to keep up its momentum, with average annual growth estimated at 2.5% until 2028. Irrefutable proof that the sector still has good years ahead of it. In France, recent Eurostat data illustrate this momentum perfectly: between 2017 and 2023, the production value of decorative candles jumped by 63.9%, confirming the growing interest of French consumers in home fragrance products.
Steady and diverse demand
The popularity of scented candles goes beyond passing fads. Giving candles for birthdays, celebrations or housewarmings is a true tradition, deeply rooted in our cultures. This habit drives sustained demand all year round, giving businesses in the sector a welcome consistency.
In recent years, consumers have been turning to new alternatives that are just as appealing and complementary:
- Scented wax melts: practical, economical and highly concentrated in fragrance, they win people over with their ease of use and strong scent throw.
- Reed diffusers: elegant and discreet, they continuously release a gentle fragrance, ideal for subtly scenting living spaces. Their clean design also makes them a lovely decorative object.
- Room sprays: instant and portable, they scent a room in a single spritz. A real asset for anyone who wants quick, personalised fragrance.
- Car diffusers: increasingly popular, they turn everyday journeys into real bubbles of well-being, while adding a refined touch to car interiors.
- Scented hanging ornaments: practical and elegant, they subtly release their fragrance in small spaces such as compact rooms or drawers. They come in many designs, which makes them pretty decorative pieces too.
Expanding your range will not only let you enrich your catalogue, but also meet growing demand and offer real added value in a competitive market. To support you in this diversification, Terre de Bougies provides everything you need to create these scented alternatives.
Key takeaway: investing in the world of candles and home fragrance is a solid opportunity, backed by clear figures and a lasting trend. Now that the market opportunity is clearer, it’s over to you for the business and legal side! But don’t panic: our articles are designed to help you.
Market research: the key step in defining your strategy
Now that you have discovered the full potential of this booming market, why not take action and start your own handmade candle business?
To validate your project and make sure it is viable, there is nothing better than carrying out market research! It will help you assess the real opportunities, identify your target customers and better understand the competitive landscape. It is built around the 4 main areas below, which you will need to work on.
The offering
The offering refers to your products. Ask yourself: Which products will I offer? Which products will help me stand out? Which needs will I meet? And so on.
To guide you through this key step, we strongly recommend using the Business Model Canvas. This strategic tool will help you clearly visualise every aspect of your offering, structure your ideas and prioritise your actions.
Demand
Demand refers to your customers. The question here is: What types of customers will I have? What demographic characteristics will define them? And so on.
To answer these questions, define your targets (main target, core target, secondary target, tertiary target). Then create your personas, which will help you better understand who you are talking to. A persona is a semi-fictional profile representing a group of people with similar needs, expectations or pain points directly related to your product or service.
The environment
The environment covers all the external factors that may directly or indirectly affect how your offering is perceived or sought after by the market. To analyse it, we recommend using the following tools:
- PESTEL: a strategic tool for analysing macro-environmental factors (those you cannot control, but which influence your business).
- SWOT: it lets you cross-reference your internal and external environment. Useful for identifying your levers and anticipating risks.
- Porter’s Five Forces: ideal for analysing your competitive environment.
Sales strategy
It is essential to define the strategy you will adopt to bring your offering to market. Ask yourself questions such as: How will I make my brand known? How will I position my prices? And so on.
This topic is covered in detail in our article “How do I structure my sales strategy?”
You have laid the foundations of your strategy: now it is time to bring your project to life by officially creating your brand.
Launching your handmade candle business as an auto-entrepreneur
It is perfectly normal to have doubts, especially about the administrative steps and legal obligations involved. But rest assured: they are only a tiny part of creating your brand. We are here to guide you and make all the jargon much easier to understand! To give you an idea of the steps to follow, here are the main ones. For more detailed explanations, see our article “Registering your business and entering the market”.
Good to know
This article is based on French regulations, but some aspects, such as VAT, extended producer responsibility and the recognition of craft qualifications, stem from European directives and apply throughout the EU, with national adaptations. Other obligations, such as protecting your brand, opening a business bank account or staying alert to administrative scams, concern many countries beyond France.
Start by choosing your legal status: the micro-enterprise
Your legal status determines how your business operates, your liabilities and your tax obligations. Choosing the right status from the outset makes it easier to grow and helps you avoid legal or financial complications. It is often advisable to start by setting up a micro-enterprise: the steps are fairly quick and simple!
Get your SIRET number and start trading legally
Registration makes your business official and gives you a unique number (SIRET). It is done online through a one-stop portal. It is essential if you want to sell legally and access the support and protections linked to your status. You can apply online via the business formalities portal (Guichet unique).
Declare and pay your URSSAF contributions
Create an account on autoentrepreneur.urssaf.fr. This will allow you to declare your turnover and pay your social security contributions, so that you stay compliant. To create your URSSAF account, you will need your SIRET number and your notice of affiliation to the self-employed social security scheme (SSI).
ACRE: a financial boost to launch your business
ACRE (Aide aux Créateurs et Repreneurs d’Entreprise: support for people starting or taking over a business) gives you a partial exemption from your social security contributions during the first year of trading. It is not automatic: you have to apply for it.
Download and fill in the official form, available on the autoentrepreneur.urssaf.fr website, then send it with your supporting documents via the secure messaging service in your URSSAF account, within 45 days of your registration.
Essential insurance: protect your business and your brand
No insurance is a legal requirement for a handmade candle business, but professional liability insurance and product liability insurance are strongly recommended for your peace of mind and your brand’s credibility.
You now have all the keys to get started… but this is only the beginning!
If you have read this far, you are probably now asking yourself: where should I start to sell my creations? How do I define my positioning and showcase my products? How do I build my visibility and find my first customers? In our next articles, we will guide you step by step to structure your business and make your launch a success.
