How to Start a Candle Making Business From Home in 2025

Over the past few years, I’ve worked with many new entrepreneurs and small business owners to help them build their own brands. I remember when someone first came to me for advice on how to start a candle making business. They had a great idea but didn’t know where to start.

They didn’t have a business plan, branding, or even supplies—just a love for candles and a dream of turning that passion into something real. Since then, I’ve helped several people launch and grow their candle businesses, both online and in local stores. Watching those journeys unfold has been nothing short of inspiring.

In this guide, I’m sharing all the practical tips, actionable insights, and lessons I’ve learned from helping so many people build their own brands. The guide is filled with useful insights and practical tips to help you learn more about the candle industry and the step-by-step process of starting your own candle business from home.

What is a candle business?

A candle business is one that produces, markets and sells candle. This type of business can range from a home-based setup where you hand-pour artisan candles in your kitchen to a full-fledged brand with custom packaging, multiple product lines, and an online store. Famous examples include Yankee Candles which was started by a teenager looking to make a homemade gift for his Mother.

Why candles are trending in 2025

Candles are setting the trend in 2025 like never before, becoming an essential part of modern living. In a world that’s always on, they offer a simple way to create warmth, calm, and a sense of balance. Candles don’t just light up spaces. they elevate moods, bring soothing fragrances, and add a touch of elegance to any room.

Whether they’re used for self-care rituals, as decorative centerpieces, or thoughtful gifts, they remain timeless in their appeal. With the surge of handmade, eco-friendly, and personalized options, candles are redefining both lifestyle and luxury, making homes feel cozier and hearts feel brighter.

Why should you start a candle business?

Candles are an essential decor item and candles are one of the most lucrative industries in the world.

According to recent market research, the global candle industry was valued at $7.15 billion in 2020 and is expected to grow significantly, reaching an estimated $13.38 billion by 2028.

Commercial use of clean and non-toxic candles continues to grow, with spas using them for aromatherapy and restaurants creating ambient environments. The National Candle Association reports that most consumers purchase candles primarily for home décor and to create a relaxing atmosphere.

The candle industry is thriving. The global candle market is projected to reach a valuation of approximately USD 14.94 billion in 2024, with an expected compound annual growth rate (CAGR) of 5.2% from 2024 to 2033.

According to Google Trends, there’s a steady global demand for homemade and clean-burning candles, with notable interest coming from regions like North America, New Zealand, Ireland, and South Africa—making these key markets worth exploring for new candle makers.

Starting a candle business offers several benefits:

• Low startup costs: Candle-making doesn’t require a lot of tools or equipment to start. With minimal startup capital, you can easily visit your local craft store and begin today (though as your business grows, investing in higher-quality materials may be a worthwhile upgrade.) This isn’t generally the case when it comes to how much it costs to start a business. Consider candle dropshipping also.
• Simple to learn: The candle-making process is simple for both beginners and pros, with plenty of free guides and tutorials (like those from the National Candle Association). You can easily experiment with scents, waxes, wicks, and containers to create your own custom candles.
• Customizable products: Create unique products to differentiate your business.

Types of homemade candles to sell

One of the major advantages of starting a candle business is the versatility it offers — from scents and shapes to colors and packaging, there’s a wide range of products you can craft to suit different tastes and market segments. Once you’ve learned the basic candle-making process, you can explore different types to find what appeals to your target customers and matches your business goals. When developing your product line, consider including some of the most in-demand candle varieties that appeal to a broad range of customers:

Scented or Aromatherapy candles

These the most common and popular candles come in a range of scents offer customers looking to spruce up their homes. Candles serve a variety of purposes — from enhancing ambiance and setting a mood to delivering therapeutic benefits through aromatherapy.

Aromatherapy candles are often promoted for their targeted benefits, with specific scents designed to support relaxation, focus, stress relief, and overall well-being. These candles incorporate essential oils that promote physical or mental health. For example, lavender aromas, for instance, are often associated with sleep and relaxation.

Soy candles

Soy candles have become a favorite among modern candle enthusiasts — and for good reason. Crafted from soybean-derived wax, they offer a natural and eco-friendly alternative to traditional paraffin or petroleum-based options. Their clean burn, extended burn time, and renewable source make them a sustainable choice that delivers both quality and value to customers.

Vegan candles

Today’s consumers are more mindful than ever about the materials companies use in their products, placing a growing emphasis on sustainability and ethical sourcing. Some customers don’t want candles that contain animal ingredients byproducts like beeswax. Vegan candles address this concern using alternative ingredients such as plant-based ingredients like soy wax, natural wax, and fragrance oils.

Decorative candles

Decorative candles are commonly found in homeware stores and are designed primarily to enhance visual aesthetics. Crafted in a variety of shapes, colors, and artistic designs, these candles serve more as stylish accents than functional sources of light or fragrance. While they often lack scents or specialty ingredients, their true purpose lies in elevating the ambiance of residential and commercial interiors.

How to Start a Candle Business:

• Identify your niche
• Develop your branding
• Create a business plan
• Register your candle business
• Get small business funding
• Make candles to sell
• Calculate your market price
• Refine your marketing strategy
• Select how and where you sell candles
• Build your online store

01. Identify your niche

The candle market might seem saturated, but there’s still plenty of opportunity for new brands to thrive. The secret? Brand differentiation—finding and owning your unique niche in this billion-dollar space.

Did you know around 35% of candle sales happen during the holiday season, while 65% are non-seasonal? That means there’s strong demand year-round, not just during Christmas—making it a great industry to break into with the right approach.

• The retail price for a candle ranges from $1.99, while large jar or pillar candles usually go for around $25 to $35. Premium or luxury candles? Those can easily reach $200 or more.
• The National Candle Association reports that candles are a favorite gift choice: 76% buy them for holidays, 74% for housewarmings, 66% for dinner parties, 61% as thank-you gifts, and 58% for adult birthdays.
• Most U.S. consumers light their candles within a week of buying them, and with over 10,000 unique scents available, it’s no surprise. There’s a fragrance out there for every mood and moment.
• According to a report by Global Industry Analysts, the global scented candle market was valued at approximately USD 354.1 million in 2020 and is expected to reach USD 542.4 million by 2026.
• Container and jar candles are currently the most popular types of candles in the U.S. market.
• In the coming years, soy wax is expected to gain significant popularity, thanks to its eco-friendly nature, slower burn rate, and ability to retain fragrance for extended periods.

The candle industry continues to grow, driven by strong consumer demand and a loyal, expanding customer base. It represents a highly profitable and sustainable market opportunity.

To differentiate, you must determine the following factors:

Your target audience

Knowing who you’re selling to is everything. Your target market—the people most likely to be genuinely interested in your product and actually make a purchase—will shape every major decision in your business. From what you create, to how you promote it, their needs are your compass.

When determining your target audience, consider the demographics of your intended market, such as How old are they? Where do they live? What do they care about? What do they spend time and money on? All these details help you speak their language and meet their needs.

Also, don’t just stop at basic info—explore different segments within your market. Understanding these groups helps you fine-tune your branding, choose the right platforms to show up on, set prices that make sense, and build a strategy that actually works.

There are three main market segments in the candle industry:

Mass market Candles ($5–$8). Mass market candles are among the affordable options in the market with standard scents like vanilla or ocean breeze, and sell for $5 to $8. This market segment is largely led by established brands such as Yankee Candle and Bed Bath & Beyond.

Prestige Candles ($30–$100). The luxury candle market is rapidly growing, with prices ranging from $30 to $200. These candles stand out with premium packaging, captivating fragrances, and strong brand storytelling, offering customers an exclusive experience.

Mid-market Candles ($10). Candles in this range attract a wider audience and are typically sold at retail outlets like Macy’s or Target. Most of these come with unique and natural scents like rosewater, coconut, grapefruit, or basil and cost at least $10 apiece.

Choose your target market based on your goals. If your dream is to get your candles on the shelves of places like Macy’s or HomeGoods, then focus on creating mid-range products that appeal to a broad crowd. But if you’re aiming for online boutiques or want to sell directly through Instagram or your own site, then go premium—prestige candles with that high-end feel could be the way to go.

The audience you choose will shape everything—from the type of wax and jars you buy, to how your brand looks, feels, and speaks to the world.

What makes your candles different

Are your candles non-toxic? Are your scents extra delicious? Do you support a cause? It’s important to establish your unique selling proposition (USP) in order to differentiate yourself from competitors.

02. Develop your branding

In the candle biz, where the market’s been booming, a strong brand isn’t optional—it’s essential. It helps you attract the right people, shape your marketing, and create products that truly resonate.

Tell a Story People Can Feel: Your brand story is what makes people care. It’s your “why,” your mission, and your voice—wrapped in one. A good story sparks emotion and action, whether it’s a sign-up or a sale.

Look at Keap Candles. Founders Harry Doull and Stephen Tracy left unfulfilling tech jobs to create something more meaningful—candles that inspire calm and intention. Their story became their brand’s heart.

To find your story, ask yourself:

• Why do I make candles?
• Who are they for?
• What change do I want to create—for people and the world?

Design That Speaks Volumes: Your visual identity—logo, website, packaging, social media—sets the mood. Since candles are both décor and scent, your design should align with your audience’s style.

As Erica Werber of Literie Candles puts it, “I just wanted the brand to feel fun.” Her packaging perfectly captures that spirit, evoking joyful moments like brunches and birthdays.

03. Create a business plan

A business plan outlines your strategy, identifies potential challenges, specifies required resources, and allows you to analyze your business idea before launching.

Think of it as your business’s GPS. It tells everything while running your candle making business from home. More than that, it helps you test your idea before you spend a single rupee (or dollar).

Here are some key questions to ask yourself early on:

• What’s the long-term vision for your candle brand?
• Who are the top competitors in your niche — and what makes you different?
• Are you aiming to sell through big-name retailers like Target or Nordstrom?
• Or will you go fully online with your own ecommerce store and sell directly to customers?

Once you have clarity on the big picture, it’s time to map out the details. A well-crafted business plan typically includes:

• Executive Summary – A quick overview of your vision, goals, and how you’ll achieve them.
• Brand Basics – Your business name, brand story, and domain name.
• Market Analysis – A deep dive into the candle market and your target customers.
• Product Line – What types of candles you’ll offer and why people will love them.
• Operations Plan – From sourcing wax to packing orders, how everything will run.
• Marketing Strategy – How you’ll get your candles in front of the right eyes.
• Financial Plan – Startup costs, pricing strategy, revenue goals, and profit projections.

This isn’t just a bunch of paperwork. A well-structured business plan becomes your blueprint for success. It forces you to think through potential roadblocks and figure out how to handle them — before they happen.

Whether you’re dreaming of becoming a niche artisan brand or the next Bath & Body Works, it all starts with clarity and direction. And your business plan is the first candle you need to light.

04. Register your candle business

Registering your business is more than paperwork — it gives you legal protection, builds trust with your customers, and sets the foundation for future growth.

Choose a business structure: Before anything else, decide how you want to structure your business. This isn’t just a formality — your business entity determines how you’ll pay taxes, how much personal risk you’re exposed to, and even how investors view your brand.

You’ve got several options:

• Sole Proprietorship – simplest to set up but offers no personal liability protection.
• Partnership – shared ownership, shared responsibilities.
• Limited Liability Company (LLC) – a popular choice for small businesses as it separates personal and business assets.
• Corporation – more complex, but best for businesses planning to scale or seek investment.

Take your time here. Your business plan can help guide this decision, especially if you already have a sense of your goals, team size, and growth path.

Now that you’ve nailed down your business structure, it’s time to make it official.

You’ll typically register with your state’s Secretary of State or a regional business authority, depending on where you’re located. If your business name is different from your legal name, you may need to register a DBA (Doing Business As) name too.

Get an employer identification number (EIN): This protects your social security number and gives your business its own tax reference and is required if you plan to:

• Hire employees
• Open a business bank account
• File taxes
• Apply for licenses or permits

You can apply for an EIN directly from the IRS for free. It’s quick, and in many cases, you’ll get your number instantly.

Register for taxes: Depending on your business type and where you operate, you may need to register for:

• Sales tax
• Franchise tax
• Unemployment insurance
• Or other local taxes

Consider intellectual property (IP) protection: If your business involves a unique product, name, logo, or idea, consider protecting it with:

• Trademarks
• Copyrights
• Patents

This step isn’t mandatory for everyone, but it can be crucial if you’re building a brand or inventing something original. Better to safeguard it now than fight for it later.

Apply for insurance

Unfortunately, candles pose a fire hazard, and accidents can occur. That’s why securing insurance is one of the most crucial steps in starting your business. Insurance not only safeguards your business but also protects you and your family.

At the very least, you’ll want an insurance policy that includes general liability coverage. General liability is the most straightforward and covers third-party property damage or injury claims.

There are a lot of online resources about small business insurance. Conduct thorough research, seek advice from a professional, and select a small business insurance provider that offers the necessary coverage while aligning with your budgetary needs.

Get a business bank account

To streamline taxes and bookkeeping, it’s advisable to keep your business income and expenses distinct from your personal finances.

Each bank or credit union has its own fees, transaction limits, and minimum balance requirements for business accounts. Take the time to compare options and find a local or online bank that best suits your needs.

Note: to open a business account, most financial institutions require a copy of your business formation documents (obtained when you registered your business), licenses/permits, and either your EIN or your social security number.

05. Get small business funding

Any business endeavor requires some startup spending, and a candle business is no exception.

The costs of supplies, marketing, production, insurance, legal counsel, and more will require capital.

As reported by SmallBizTrends, startup costs for a candle business typically range from $9,500 to $78,000, with the average falling around $44,000. Here’s a breakdown of these expenses when launching a candle business:

• Production equipment – $500 to $5,000
• Supplies (wax, molds, wicks) – $3,000
• Insurance and legal fees – $500 to $3,500.
• Permits and licenses for the business – $50 to $700.
• Business software – $50 to $500.
• Small business insurance – $500 to $2,000.

Few entrepreneurs and small business owners have enough savings to pay cash when starting a candle business. But there are plenty of business financing options. For example, consider the following:

Business credit cards: It can be an excellent option for new business owners, as they typically require a less extensive credit history compared to traditional loans. Most credit cards offer a 0% interest rate during the introductory period, equivalent to having an interest-free loan if you pay off your balance before the introductory period expires.

Business lines of credit: A business line of credit offers greater flexibility than a traditional business loan, allowing you to borrow only what you need when you need it.

Startup funding: New business owners should explore startup financing options like SBA microloans or grants, which can provide valuable funding with favorable terms.

06. Make candles to sell

Finally, we get to the fun part! During the product development stage, your creativity, innovation, and craftsmanship take center stage, setting the foundation for your brand’s uniqueness.

Creating a high-quality product is essential, as a well-made candle can promote relaxation, enhance the decor, and set the perfect mood for any room. On the other hand, a poorly crafted candle can lead to disappointing results and a negative experience for the customer.

So before moving to the next step, take some time to learn how to make high-quality candles and develop your signature scents if you sell scented candles.

During the product development stage, it’s crucial to focus on mastering an optimal burn time, perfecting the quality of your wax, and achieving the right balance of fragrance intensity for scented products. (the scent should neither be too faint that it is barely noticeable nor too strong that it can be obtrusive).

You can experiment with different fragrance oil blends and containers until you find the perfect match.

As we’ve shown, you can create many types of candles in your own kitchen. Here’s how to make soy candles—you can adapt this basic recipe to create your own unique products.

Gather your materials: For homemade soy candles, you’ll need:

• Soy wax
• Cotton wicks
• Super glue
• Essential oil
• Spatula
• Double boiler
• Thermometer
• Mason jar
• Pen or pencil
• Candle molds

Find soy wax in bulk on wholesale candle sites like AliExpress or Bulk Apothecary for around $10 per pound. You can source glass jars and containers from platforms like AliExpress, thrift stores, or dollar stores (check out our guide on AliExpress for more details!). Most of the other ingredients you’ll need can be easily found at your local grocery store.

Essential oils can be found at your local craft store or on platforms like Etsy and Amazon. According to the National Candle Association, fragrance is the key factor customers consider when purchasing. To stand out, focus on creating unique and captivating blends. Instead of offering the usual floral or woodsy scents, craft complex combinations that evoke nostalgia or spark curiosity.

Prep your wax and container: Melt your soy wax in a double boiler over medium heat (or place a glass bowl on top of a larger pot). Stir with a spatula to break up any chunks and ensure the wax melts evenly.

As the wax melts, glue the wick to the bottom of your glass container and allow it to dry, ensuring the wick stays securely in place.

Customize your candle mixture: Once the wax has melted, add essential oil at a ratio of one ounce per pound of wax. For colored candles, stir in non-toxic crayon pieces. Allow the mixture to cool to 130°F to 140°F, checking with your thermometer to ensure the right temperature.

Prep your pour: Hold the wick upright and pour the cooled mixture into your jar, filling it three-quarters full. Tie the wick end to the pen and set it across the jar opening to keep it straight.

Finish your candle: Let the wax firm up—you may see a small sinkhole around the wick, which is normal. Pour the remaining wax to fill the jar. Once completely set, trim the excess wick. Your candle is ready to burn!

07. Calculate your market price

How much will you charge for your candles? Your pricing strategy depends on product quality, brand positioning, market, and competition. Luxury candles, for example, can sell for over $100. Find the right price for your market with these steps:

• Calculate cost of goods: Add up the cost of candle making supplies, production time, and equipment costs.
• Include operating expenses: Factor in office supplies, legal fees, insurance, utilities, and marketing.
• Set a profit margin: Use our free profit margin calculator to determine your target profit after materials and expenses.

Note: Prices for selling wholesale will be lower but offer higher transaction volumes than direct-to-customer sales.

08. Refine your marketing strategy

You can begin marketing your company by choosing a business name and developing your brand.

A well-thought-out marketing strategy is crucial to getting your products in front of your target audience.

Social media is an excellent place to begin, which is free, easy to use, and fun.

Email marketing is also an affordable option that you should also consider.

09. Select how and where you sell candles

Here’s how to sell your homemade candles across different channels:

Online marketing: One of the most effective ways to sell candles is online. Use multiple digital platforms to reach potential customers worldwide.

These platforms and tactics tend to work well for candle makers:

Instagram: Instagram has helped many lifestyle brands build a sizable following. Market on Instagram by curating a feed of images that showcase the best of your products and your brand. Share scroll-stopping photos of your candles to attract customers.

You can also leverage Instagram to connect with brand ambassadors and influencers who can tap into their following to expand your reach and provide valuable social proof.

Pinterest: Pinterest is one of the largest platforms people use to discover brands and products. Home decor is a significant category on Instagram, making Pinterest a great marketing tool to promote your candle line.

Invest in creating a portfolio of stylized, professionally-shot product images. If possible, incorporate lifestyle images that showcase your products in real-life settings. This adds an aspirational quality to your brand, capturing the attention of your target audience.

Tiktok: TikTok has rapidly become one of the most popular social media platforms, boasting over 1 billion monthly users. It’s a highly visual platform where creative video content is key to engaging with a wide audience.

When marketing on TikTok, focus on helping people connect with your brand on a more personal level. Share behind-the-scenes content, unboxing videos, customer testimonials, and product launches to build a deeper relationship with your audience.

Offline marketing: While online sales are undeniably important, it’s essential not to overlook the power of in-person selling. Candles, being compact and easy to transport, are ideal for craft shows and pop-up shops. Selling face-to-face provides several key advantages:

• Direct feedback: Meet customers face-to-face to understand their needs and improve your products.
• Wholesale opportunities: Looking to explore selling B2B? Connect with potential wholesale buyers at markets and fairs.
• Build your online following: Grow your social media audience and build your email list at in-person events.
• Network and learn:Connect with fellow makers and entrepreneurs for inspiration and problem-solving.

10. Build your online store

Running your own eCommerce store is more profitable and offers greater control over your brand compared to online marketplaces like Amazon, which often take a significant portion of your profits. Although setting up an online store may seem overwhelming, platforms like Shopify make it easy to launch without the need for coding skills or a large budget.

Shopify handles:

• Website design
• Product listings
• Inventory management
• Payment processing
• Marketing automation
• International shipping labels and tracking
• Multiple sales channels—including Instagram, TikTok, Amazon, and Walmart

… leaving you with more time to do what you do best: make candles.

Candle business tips

Whether you’re starting a side hustle or full-time business, keep these tips in mind:

Take amazing product photos 

Great product photography helps sell your candles. Show clear images of shapes and labels. Try staging candles in home settings so shoppers can envision them in their space. You can hire a professional photographer or take high-quality photos with a smartphone.

Create more selling opportunities 

Focus on getting repeat customers—it’s more profitable than constantly finding new ones. Try:

• Cross-selling travel-sized versions of popular candles
• Offer limited-edition scents
• Creating subscription boxes, like Frostbeard Studio’s Candle of the Month Club 

Expand your product line 

Explore a diverse range of fragrance blends to cater to a variety of customer preferences. Consider diversifying your product line by introducing other handmade goods such as soaps, shampoos, or perfumes, all infused with your signature scents, similar to the approach taken by Tofino Soap Company. Capitalize on customer buying patterns by offering scent-based upsells, creating personalized care packages, and tapping into new market segments.

Focus on holiday sales

According to the National Candle Association, 35% of candle sales occur during the Christmas season, with 76% of buyers considering candles to be great gift options. To capitalize on this, plan holiday campaigns featuring special promotions and targeted ads to attract gift shoppers.

Stay current with trends

Use resources like Meta Foresight, Think with Google, and Nielsen to stay ahead of consumer trends and identify key pain points. Use these insights to inform the development of new products and to shape more effective marketing campaigns.

Use social media effectively

Build your audience and connect with potential customers through short-form video content. Try:

• Showing your candle-making process
• Sharing your business story
• Recording evening routines featuring your candles
• Demonstrating candle comparisons
• Documenting challenges and solutions

“We’re not simply capturing static product images; we’re showing you how this candle will truly fit into your space,” says Kristen Pumphrey, owner of P.F. Candle Co. “The goal is to convey the feeling: if you bring this candle into your home, this is the atmosphere it will create.”

Candle business FAQ