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Keeping Candles Lit

By: Jeff Falk
Posted: August 26, 2008, from the October 2007 issue of GCI Magazine.

page 3 of 6

In its report on global air care, Euromonitor reports consumers’ changing attitudes toward the home environment are a factor in the growth of the air care market, noting a movement toward creating a more relaxing and welcoming home environment, with candles playing a supporting role and riding on waves of larger trends. Within the air care category, products are impacted by several consumer categories, including fine fragrance and home decor trends.

“These trends are becoming increasingly more important to consumers, as they are interested in more than just a traditional scented candle, but also a product that can help create a pleasing environment in which they can relax,” said Martin Hettich, marketing director, global air care, P&G/Febreze.

Major players in the market have either felt directly the impact of the surge in consumer interest or have taken serious note.

The Yankee Candle Company posted total sales of $277.8 million for 2006’s fourth quarter, a 17.3% increase over the prior year quarter, and total sales for fiscal 2006 of $687.6, a 14.4% increase over fiscal 2005. Total revenue for its first quarter 2007 was $143 million, a 7% increase, and the company continues to grow its distribution channels—including approximately 17,400 store locations and more than 420 company owned and operated retail stores.

After an 87-year absence, Procter & Gamble re-entered the candle market by launching the Febreze Candle throughout the U.S. in July 2007—counting on leveraging the Febreze brand, consumer desire for improved odor elimination and the health of the candle market.