Industry Analysis & Industry Trends
Over the past five years, improving incomes and the introduction of a variety of scented and colored candles has helped the industry recover from lows incurred during the recession. Going forward, the Candle Manufacturing industry is expected to continue benefiting from growing demand for candles domestically and abroad. In turn, this will be underpinned by rising disposable spending and a sustained preference for candles as scented and colored additives to rooms and households. Still, the industry is expected to continue dealing with challenges such as competitive substitutes (e.g. flowers), low-price imported candles and high-plastic input costs.... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry in the Candle Manufacturing industry are low. Production inputs, such as wax, wicks, fragrances and colorants are cheap and relatively easy to source, enabling and encouraging entry during periods of high demand and promising profit margins. In addition, financing for a small production facility and relevant equipment is usually accessible, particularly during periods of low interest rates.
Still, barriers to entry are increasing due to rising industry concentration. Established manufacturers, which benefit from economies of scale and scope, can pose a barrier for potential entrants. These operators have cost-minimizing measures and promotional resources in place that allow them to realize lower marginal production costs and higher profit... purchase to read more