From being present in the desks and cupboards of every household just hidden somewhere, sometimes as a home-décor element to light up the room or sometimes used when it’s just too dark to do nothing when the power has been cut off, a candle sure has its own illuminating applications
This wax-made-candle used for such specific yet all essential purposes has its global market value worth at $3.45 billion during 2018. With the Asia Pacific countries like China, India, Bangladesh being the largest producers as well as majority of consumers contributing to it.
Candle making business has been expanding at an increasing rate mainly because of its increased target consumers contributed by its wide range in shapes, sizes, applications etc.
This business has aimed to capture the demand of the majority of the population segments which are the millennials, baby boomers as well as the older population.
The flame of this business is not getting put off soon, and here’s the hows and whys you must lighten this candle up
Market potential and uses
A candle is an ignitable stick made of wax which is used for the purpose of illumination and sometimes fragrance.
The market potential for a candle is vast. The high-end companies from Gucci, LV to the household chandlers are all getting down in this business because of its increasing applications dominating to beauty, thereby, décor etc and the lower costs associated with it
Further, the market potential for a candle making business can be defined on the basis of the following:
On the basis of wax used
Paraffin wax: Comes without any additives
Soy wax. : 100% natural wax
Palm wax. : 100% natural wax made of hydrogenating palm oil
Beeswax. : 100% natural wax used to make all types of candles
Granulated wax: its is used for crafting
Gel based wax. : it has translucent quality of gelatine
On the basis of type of candle
Pillar candles
Container candles
Votive candles
Tea light candles
Taper candles
Tarts
Gel candles
On the basis of Uses of candles
Used for home decoration
Used for aromatherapy
Used for illuminating
Used as a complementary element when using face masks
Used in chandeliers
Licenses required
The licenses required to run this candle making business is:
GST registration
NOC by state pollution control board
Trade license
MSME registration
Investment required
The investment required to set up this business is between ₹5 lakhs- ₹10 lakhs
Profits made
The profits which one is likely to yield from this business is ₹25000-₹30000 per month
Target consumers
The target consumers for this candle making business are:
Antique stores: The antique stores requires candles for the purpose of an intermediary product in maintaining the antique chandeliers, lamps, lanterns etc
Décor store: The home décor stores make use of candles of various sizes, shapes and colours for the purpose of meeting the various interior needs of consumers for an arrangement of candles on tables, stands, lamps, etc
Aromatherapy centres: Aromatherapy is the form of a body or a facial massage by making use of aroma candles which come with rather a pleasant fragrance their by creating a warm vibe and habitat
Meditation and retreat centres: These make use of candles for the purpose of lighting it up as a part of their therapeutic and meditative needs
Religious requirements: The religious spaces like temples, mosques and churches also make us of candles as apart of their religious rituals, traditions and practices
Beauty stores: Candles are also required by the beauty-conscious consumers who make use of candles as a part of their bathing needs as well
Social media beauty influencers: Often customised candles are also made use by those beauty influencers who demonstrate the procedure of using a face mask with a candle flickering nearby in order to get an aesthetic vibe
Rural consumers: The condiments in rural areas and villages require candles as an alternative to electricity to light up the room or their houses
Occasions: There are specific types of candles which are customised according to the occasions like birthdays, anniversaries, bridal showers etc
Area required
The area required to set up this candle making business is 500sq ft – 1000 sq ft
Raw materials required
The raw materials required to set up this business are:
Wax : paraffin, gel, ay, beeswax
Wicks
Tins, jars etc
Essential oils, for fragrance
Colouring agents
Packaging supplies
Labels
Machinery required
The machinery required to set up a candle making business is
Wax heating machine
Candle thread cutting machine
Mixer/grinder
Moulding machine
Or
Manual candle making machine
Semi automatic candle making machine
Fully automatic candle making machine
Manpower required
The manpower required to run a candle making business is as follows:
1-skilled labour
2-skilled labours
Moreover, ample training in terms of the following must also be provided with
Equipment usage
Machine handling
Safety and precautions
Business model and growth
The business a model of a candle making business can be defined using these four variants
Value proposition: The value which a candle making business is likely to provide to you is:
Easy procedure and processes, fewer types of raw materials required which are available in abundant quality
Also, The rural demand for candles is always consistent having the perks of low investment costs
Target consumers: The target consumers for this business are
Antique stores
Home décor stores
Beauty stores
Aromatherapy centres
Occasions
Religious spaces
Social media beauty influencers
Rural consumers
Competitor review: Even though the competition in this business is not as aggressive because of few key competitors and they are as follows:
Scented candles
India eco candle
Bombay perfumery
Kama Ayurveda
House of things Svarupa candles
Unscented candles
Virgo productions
Swastika industries
Marketing strategy: The marketing strategy that can be implemented by your candle making business could be:
Advertising: Through tv commercials, billboards and tying up with repeated interior décor companies
Social media: Sponsoring beauty influencers to make use of candles in their face cleansing and make up tutorials
Sales promotion: providing discounts and offers on festivals like Diwali, New Years, Christmas etc
Growth
The candle making business has the potential and has witnessed the following growth prospects:
The demand for candle is up and rising especially in the Asia Pacific countries of China, India and Bangladesh mainly beside of highly concentrated need of it for religious and aromatherapy purposes
The demand in these regions is expected to grow at a CAGR of 9.2%
The global candle market is also expected to grow at a CAGR of 8.5%
Profit margin
The profit margin which a candle making business is likely to yield is 30%-45%
Suggestions
The reasons to take up this business are likely to surpass the number of applications a candle possesses and here’s why you should take up this candle making business :
Firstly, the investment involved in this candle making business and the procedures and process involved in making those are very minimal and the profit margin is very sufficient
Secondly, the increasing need of making use of natural and organic candles for the purpose of at-home aromatherapy, for using it extensively in home décor has also contributed to its increasing demand
Lastly, because of certain value added to candles manufactured by india, the nature of its wax, handcrafting abilities, Ayurvedic essence etc a global demand could also be achieved.