Candles - US

Because there are so many forms of air care, there is room for candles to increase their presence even without growing the overall air care market. Candles are second only to sprays in terms of products that respondents to Mintel’s exclusive survey use for air freshening, yet they are likely perceived as less effective than a spray, which has instantaneous results, and plug-ins, which can be forgotten and typically last longer than scented candles.

Perhaps the best way for candles to further penetrate the air care market is through the emphasis on design: because sprays have no design appeal whatsoever, and because the design appeal of plug-ins is extremely limited, candles can occupy the space in the market for products that not only freshen the air but add to home décor. Moreover, the unique scents of candles should be highlighted and shown to produce more authentic, less imitative air care than sprays.

Scope and Themes

What you need to know

Definition

Data sources

Sales data

Consumer survey data

Advertising Creative

Abbreviations and terms

Executive Summary

Overview

Insights and opportunities

Competing with non-candle air care

Insect-repelling candles can do more

Marketing in a recession

FDM brands have potential to expand into other retail channels

Market sales hurt by souring economy, increasing materials costs, poor 2008 holiday season

FDMx channels dwarfed by other channels, but hurt less in recession

Candle sales down as home sales fall; trend for candles as air care can help

New/existing home sales down

Other air freshener products impinge potential for candles as air care

SCJ leads FDMx market; Yankee tops sales through all other channels

Brand qualities

Candle décor

Eco-candles

Candles that aid relaxation

Glade’s appeal to tightening household budgets

The candle consumer

Usage

Frequency of use

Candle spend

Purchasing habits and trends

Candle purchase locations

Brands purchased

Attitudes and motivations

Race and Hispanic origin

Market Size and Forecast

Key points

Ongoing recession causes sales loss

Crude oil prices impact materials costs

Seasonal sales account for 35% of all sales

Sales of candles

Figure 1: Total U.S. sales and forecast of candles, at current prices, 2004-14

Figure 2: Total U.S. sales and forecast of candles, at inflation-adjusted prices, 2004-14

Walmart sales

Competitive Context

Air care heats up, within and outside the market

The new competitive front: green candles

Ongoing recession hits the candle market

Figure 3: Usage of candles compared to other types of air fresheners, January 2008 and May-June 2009

Retail Channels—Overview

Key points

Non-FDMx stores account for majority of the market

FDMx channels and all other retailers sales of candles

Figure 4: U.S. sales of candles, segmented by channel, 2008-09

FDMx Retailers

Key points

FDMx must find further merchandising opportunities

Sales of candles through food, drug, and mass stores

Figure 5: Total U.S. sales and forecast of FDMx candles, at current prices, 2004-14

Figure 6: Total U.S. sales and forecast of FDMx candles, at inflation-adjusted prices, 2004-14

All Other Retailers

Key points

“Other” retailers comprise a wide range of channels

Candle specialty stores

Internet sellers

Catalogs

Direct-sellers

Sales of candles through all other retailers

Figure 7: Total U.S. sales and forecast of all other retailers candles (non-FDMx), at current prices, 2004-14

Figure 8: Total U.S. sales and forecast of all other retailers candles (non-FDMx), at inflation-adjusted prices, 2004-14

Market Drivers

Key points

New/existing home sales, home building down, negatively impact the candles market

Figure 9: Sales of new single-family homes, 2006-09

Figure 10: Sales of existing single-family homes, 2006-09

Figure 11: Housing starts, 2006-09

Rising unemployment also means less candle buying

Figure 12: U.S. unemployment rate, 2006-09

Scented candles face competition from other types of air fresheners

Figure 13: Usage of candles compared to other types of air fresheners, by gender, January 2008 and May-June 2009

Women represent primary candle buyers, but men participate

Figure 14: Frequency of buying candles, by gender, 2005-09

Leading FDMx Companies

Key points

SC Johnson still leads, but loses sales

Figure 15: FDMx sales of leading candle companies, 2008-09

Brand Share—FDMx Brands

Key points

Leading brands feel the recessionary downturn

SC Johnson

Lancaster

Procter & Gamble

Reed

Signature Brands

Figure 16: FDM brand sales of candles, 2008-09

Brand Share—Specialty Brands

Key points

Overview

Yankee Candle

Hanna’s Candle Co.

Chesapeake Bay Candle

PartyLite

Village Candle

Aromatique, Inc.

Brand Qualities

Companies vie for design-conscious consumers

Eco-friendly candles are heating up competition

Candles as stress relievers

Glade appeals to the thrifty consumer

Innovation and Innovators

Seasonal candles still biggest trend; botanical, green candles on the rise

Figure 17: Trends in candle claims in new U.S. candle product launches, 2003-09

Body care candles takes the pampering trend a step further

Eco-friendly candles

Specialty candles for fun, uniqueness

Advertising and Promotion

Overview

Web marketing

Yankee

Glade

Febreze

TV spots—marketing Glade candles in a recession

Glade

Figure 18: Glade Scented Oil Candles, 2008

Figure 19: Glade Scented Oil Candles, 2008

Figure 20: Glade Scented Oil Candles, 2008

Usage

Key points

Usage of candles as air fresheners slips more than other fresheners

Figure 21: Usage of candles compared to other types of air fresheners, by gender, January 2008 and May-June 2009

Figure 22: Usage of candles compared to other types of air fresheners, by age, May-June 2009

Frequency of Use

Key points

Purchase frequency is down significantly

Figure 23: Frequency of buying candles and air fresheners, by gender, May-June 2009

Figure 24: Frequency of buying candles and air fresheners, by age, May-June 2009

Candle Spend

Key points

Full-time employment, higher income, mean higher candle spending

Figure 25: Spending per purchase on candles, May-June 2009

Figure 26: Change from last year in spending on candles, May-June 2009

Purchasing Habits and Trends

Key points

More people are not buying candles

Figure 27: Types of candles purchased in the last three months, by gender, January 2008 and May-June 2009

Figure 28: Types of candles purchased in the last three months, by age, May-June 2009

Candle Purchase Locations

Key points

Mass stores most used, but all channels down from 2008

Figure 29: Typical retail location for candle purchases, by age, May-June 2009

Figure 30: Typical retail location for candle purchases, by household income, May-June 2009

Brands Purchased

Key points

Leading brands continue as candles of choice

Figure 31: Candle brands purchased in past two years, January 2008 and May-June 2009

Figure 32: Candle brands purchased in past two years, by age, May-June 2009

Figure 33: Candle brands purchased in past two years, by household income, May-June 2009

Attitudes and Motivations

Key points

Most still use candles for air care; interest in soy candles grows

Figure 34: Attitudes towards candle products, January 2008 and May-June 2009

Figure 35: Attitudes towards candle products, by age, May-June 2009

Race and Ethnicity

Key points

Blacks most likely to use non-candle air care products

Figure 36: Usage of candles compared to other types of air fresheners, by race/ethnicity, May-June 2009

Whites report fewer purchases of most types of candles

Figure 37: Types of candles purchased in the last three months, by race/ethnicity, May-June 2009

All races buy non-candle air fresheners more than candle air fresheners

Figure 38: Frequency of buying candles and air fresheners, by race/ethnicity, May-June 2009

Ethnicities follow the norm for brand preference

Figure 39: Candle brands purchased in past two years, by race/ethnicity, May-June 2009

Blacks buy at dollar stores much more than other ethnicities; Asians prefer department stores

Figure 40: Typical retail location for candle purchases, by race/ethnicity, May-June 2009

Whites appear less engaged in the candle market than other ethnicities

Figure 41: Attitudes towards candle products, by race/ethnicity, May-June 2009

APPENDIX: OTHER USEFUL CONSUMER TABLES

Usage

Figure 42: Usage of candles compared to other types of air fresheners, by household income, May-June 2009

Frequency of use

Figure 43: Frequency of buying candles and air fresheners, by household income, May-June 2009

Candle spend

Figure 44: Spending on candles compared to a year ago, by gender, age hh income, race/ethnicity, employment, religion, May-June 2009

Purchasing habits and trends

Figure 45: Types of candles purchased in the last three months, by hh income, May-June 2009

Attitudes and motivations

Figure 46: Attitudes towards candle products, by hh income, May-June 2009

APPENDIX: TRADE ASSOCIATIONS