Candle Industry Insights
The online retail channel has long been heralded as the future of candle distribution, but recent data suggests a more nuanced reality. While online retail was projected to grow at an 8.2% CAGR through 2031, individual retailer performance tells a story of significant variability and, in many cases, contraction. Aggregate online sales of scented candles across tracked retailers amounted to USD 39 million in 2025, down 20–50% from the previous year. For 2026, revenue is expected to decline by a further 20–50%.
The performance of major players illustrates this trend. Yankee Candle's online store generated USD 68.8 million in annual sales in 2025, down 20–50% from the previous year, though the brand is expected to see a 5–10% recovery in 2026. PF Candle Co. reported USD 3.3 million in online sales in 2025, down 0–5%, with a projected decline of 10–20% for 2026. Kringle Candle's online sales amounted to USD 3.6 million in 2025, down 20–50%, with expectations of a further 50%+ decline in 2026. Smaller players face even steeper headwinds: Farmhouse Candle Co. saw online sales of just USD 12.8K in 2025, down over 50% from the previous year.
These figures suggest that the e-commerce boom that accelerated during the pandemic is now facing a correction. Consumers are returning to physical retail for the tactile, sensory experience that candles demand—the ability to smell fragrances, feel packaging quality, and visualize how a candle will complement their home décor. Supermarkets and hypermarkets still represented 32.6% of distribution revenue in 2025, and offline channels remain the largest revenue share.
For candle manufacturers, these trends carry important strategic implications. While e-commerce remains an essential channel, particularly for DTC brands and subscription models, it cannot be relied upon as the sole growth engine. A diversified distribution strategy—combining strong retail partnerships, curated wholesale relationships, and a focused digital presence—will be essential for sustained growth. Manufacturers should also invest in omnichannel capabilities that allow consumers to discover products online and purchase in-store, or vice versa, creating a seamless brand experience across all touchpoints.
