Lighting the way - perspectives from artisan candle companies

Candles, wonderful candles. They make our spaces cozy and our homes inviting. They are as unique as the artisans making them.

One of my favorite rituals for writing is to pull a candle out of my candle stash, light it, and let the scent wash over me. Yes, I have a candle stash. No, that is not the important part. All my candle making friends assure me candle stashes are normal and that everyone should have one. Nope, not weird at all.

The aromatherapy of candles can be great for boosting your mood, or just relaxing. But how much do you know about these delightful products that you probably have in your home?

The Candle Market

Do you have a candle in your home? Here are some great statistics from the National Candle Association that you might find surprising:

• More than 1 billion pounds of wax are used in producing the candles sold each year in the U.S.

• U.S. retail sales of candle products are estimated at approximately $3.14 billion annually. (Note, this is an older statistic, it is likely much larger now than in 2013 when the data was last collected).

• Candles are used in 7 out of 10 U.S. households.

• Both men and women consider candles to be an always-acceptable and highly appreciated gift for a wide variety of occasions.

• Candle purchasers say they view candles as an appropriate gift for the holidays (76%), as a house warming gift (74%), a hostess/dinner party gift (66%), a thank you (61%) and as adult birthday gifts (58%).

• Two-thirds of candle purchasers say they use candles once a week or more often.

Source: National Candle Association

Want even more great information from the National Candle associate? Go here.

So let’s just put it this way. If you have not given a candle as a gift, bought one for your home, or burned one in your home recently then you are in the minority. This is another artisan industry where we are just quietly loving what this industry produces, much like the wool industry or the puzzle industries. Read those articles here:

We're gonna need more sheep 

Sorting out a puzzling problem- Part 1 

Sorting out a puzzling problem- Part 2 

In this industry, we have mass produced versus artisan candles. How are they different?

My observations on mass produced versus artisan candle markets

With such a large industry, we are naturally going to see huge variation within the products. So how are artisan candles generally different than mass produced candles in my experience?

Typically, a mass merchandised brand is going to use Paraffin wax, which is a petroleum based product. Paraffin was is generally used for the vibrantly colored candles that you may see in retail stores. There are lots of bright colors on the candles due to the dyes used in them.

In my experiences artisan candles are typically going to be from different sources of wax that are also more expensive. Soy, Coconut, and Beeswax are more common for artisan candles.

Soy wax has a slower burn time than a paraffin wax candle. It is also less likely to produce soot or blacken the insides of the container. With a paraffin wax candle there seem to be more variables that can cause the inside of your container to get blackened. Whether it is the level of refined paraffin you are using or proper wick trimming, there are a variety of sources that can cause this soot.

Generally, artisan candles are typically white. If there is coloration in the product, it is usually as part of the container. You don’t generally see vibrant colors in the candle wax itself the way you would with paraffin wax. You’ll also get into different scent profiles and more aromatherapy types of uses. You’ll see interesting wicks such as wooden wicks.

Now that we have set the stage with some of the differences, it is time to start talking about how the recent tariffs affect this industry. Let’s address the first elephant in the room: we already have ongoing trade disputes with China in the mass produced side of this industry.

Ongoing Trade Challenges with China

The candle industry also faces some unique challenges in the relationship with China. This relates to the petroleum based part of the industry, i.e. paraffin wax. There are long standing problems related to dumping. This trade dispute goes back to 1986! I was in elementary school when this dispute started. You can read that trade dispute here.

So what exactly is dumping?

“Dumping is, in general, a situation of international price discrimination, where the price of a product when sold in the importing country is less than the price of that product in the market of the exporting country. Thus, in the simplest of cases, one identifies dumping simply by comparing prices in two markets. However, the situation is rarely, if ever, that simple, and in most cases it is necessary to undertake a series of complex analytical steps in order to determine the appropriate price in the market of the exporting country (known as the “normal value”) and the appropriate price in the market of the importing country (known as the “export price”) so as to be able to undertake an appropriate comparison.” Source: World Trade Organization, Technical Information on anti-dumping

Essentially, dumping is a way to eliminate the competition in another country by so severely undercutting them on price that you put them out of business. Most of us are used to having to price competitively, but dumping is a problem because it is intended to put all of us out of business. And it has been a long standing problem for the petroleum based part of the candle industry. This agreement is reviewed every five years to determine if the anti-dumping duties should remain in place. Each time it has come up for renewal it has been renewed. Since 1986!

“In July 2021, the Commerce Department indicated that revocation of the tariffs would likely lead to continuation or recurrence of dumping. Commerce determined to keep the anti-dumping duty order in place, and in September 2021, ITC ruled in favor to continue the antidumping duty order for another five years.” Source: National Candle Association, Sunset Review

Did you know that artisan candle makers often support the agricultural industry?

Let’s pause here for a moment. There is a direct line between the soy wax used in artisan candles and support for our domestic farmers. Most never consider that this part of the ecosystem is working and is intact.

Why is this important? Because US farmers are forced to compete an a large international market of commodities. Brazil has overtaken the US in terms of being the largest soybean producer, and Brazil continues to increase its soy production.

According to Forbes: “The global soybean balance sheet is loosening, that is to say production and supplies are increasing faster than demand. This is creating ever larger projections for global soybean ending stocks. Ending stocks are a measure the amount of soybeans that remain at the end of a growing season after harvest and after all demand is satisfied.” Brazil’s Increasing Soybean Output Keeps Markets Well Supplied

We manufacture soy wax here using our agricultural products. We even export these products to other countries. There is much up for debate in what’s better, Paraffin, soy, or other waxes. They certainly have different price points and qualities to the products.

I could write entire articles about the challenges going on in the agriculture industry, and how input costs have been higher than the commodity prices for several years now. This has put a real strain on farmers. How long could you withstand having your costs higher than your revenue?

The use of soy wax from our artisan candle makers is something we can all smile about. That soy candle has its tie right back to supporting our Ag industry. Just something to keep in mind next time you buy a candle. If you are choosing between paraffin and soy- just ask yourself. Big oil, or small farmers: which do you like more?

Now, let’s shift gears a little bit and talk about the impacts of the tariffs on our artisan candle makers.

Getting context from ‘Sota Cracklers

I interviewed Laura of 'Sota Cracklers to understand how the tariffs are impacting her small business. Her candle fragrances are uniquely Minnesotan. The Lemon Sunrise candle pictured above has a bright lemon cream + bergamot + mint scent. It’s like a party for your nose! So what’s happening Laura’s business since the introduction of the tariffs? She shared:

“By the time the tariffs were announced, I had already gone through what I use for my supplies to think about what is going to be affected. However, I didn’t think that they would be as high or as expansive to all the countries as they have been proposed.

I am fortunate in that I used a soy wax that is made here in the US. In this regard, we are lucky. We even export our soy wax for candles to other countries.

I am primarily affected by two things- first, the wick clips are steel. I am expecting a price increase on these. Second, the jars are not manufactured in the US. In my experience, most of the jars are manufactured in China or Indonesia.

I use a straight sided jar, and there are not many produced in the sizes that I use. It’s not just a matter of swapping out suppliers. I have to redesign and get new labels if I have to adjust the jar. I have a stock of 15,000 labels already. You invest in the components that are working together but then you have to change one item, will that work with the other items? And will that work with the price points? Can you change the price point to work for wholesale or retail customers? There is actually a lot to consider.”

Laura and I also talked about the challenges in planning given the broader economy. This is something I have heard from many artisan businesses. She shared:

“First quarter is always a little slower- but this has been exceptionally slow. By April normally we are in the flow of things but this has not returned yet. Some of my large accounts are with airport stores. Those stores are seeing less foot traffic. Safety issues on travel have hit airport stores. So they are seeing a decrease. Because they have not gotten the spring break travel traffic they normally see. 

There is also the financial concern of do I want to take a leisure trip right now? People are just very nervous and holding on to their wallets. Consumer discretionary spending is down and many consumers are scared. 

This is different than the pandemic. The lipstick effect was present during the pandemic but is not there right now. This is a different fear. We are waiting to see how it plays out.”

I have often heard that people stocked up on supplies to get out in front of the tariffs and soften the impact. I asked Laura how she approached the stocking up issue:

“For candle makers, we only have so much capital. We also only have so much space. Jars is the our biggest challenge. Even if we have the capital to purchase more jars, having somewhere to store them becomes a challenge. Adding storage then means I have to absorb the cost of all that storage.”

I wanted to understand from Laura’s perspective what she hoped would come out of this broader discussion on manufacturing. She shared:

“I would love to see more glass factories. But I know this is probably not a quick fix. We would have to get the systems and infrastructure in place. And then we would also need the labor supply. We are also used to the overseas pricing on materials and are used to that cost profile. We aren’t all set up to just rapidly change this supply chain.

I also wonder how this will affect our farmers? If they face reciprocal tariffs, what happens to our soy wax industry? We do export a lot of soy wax. It feels like this is going to affect our farmers.”

So as consumers, what does Laura think you should expect in the coming months?

“We are still very much figuring out how to deal with this. We have to hear from our suppliers first on their pricing. I am expecting to see price increases and potentially even shortages on jars. I am going to have to get creative with jars. I am adjusting my selling strategy given the softer economy. I will be doing more in person markets.

Mother’s Day is our next big data point on what’s happening. I have been in business for over 8 years, and I am taking it one day at a time right now.

For consumers: be aware that you might be buying something that is locally made, but there are components of those items affected by the tariffs due to imported materials. This has been hard for all of us, and we may have to increase prices. I will know a lot more by July as it relates to how the year is shaping up and how pricing will be affected.”

Refining product strategies with Effing Candle

I talked with Birdie from Effing Candle Co. as the company has a wide range of candle products. Candles, travel candles, room sprays, wax melts, and candle refill kits are all part of their offerings. The company is based in Kansas City.

Their mission is to create affordable luxury candles that elevate the ambiance of your home with the strike of a match. How great is that?

When I asked her for her experiences with the tariffs, she shared “So far, we've seen a price increase from our jar supplier. Anything we order from China - room spray bottles, paper tube packaging, travel candle tins, and matches) will be subject to the tariffs. Many of our materials are sent from China to a US supplier who resells it to smaller businesses, like us.”

Like other candle makers, she has tried unsuccessfully to source materials here.

“I have tried to source here, and some products just aren't made here. Our jars, for example, come from China. Everyone making a product in a 9oz straight-sided clear glass jar is getting them from China (hi, if you're a US-based company that makes these, you need to fire your digital marketing team because I couldn't find you on Google, but would love to chat!)

The other issue is that Minimum Order Quantities are prohibitive when we can source items.

Our travel candle tins, for example, can be ordered from our supplier in China, with an MOQ of 3,000 units, which is roughly a $2,000 spend, including shipping. Domestic tin manufacturers typically require a $25,000 spend, (usually around 45,000 units). I would love it if we needed that many travel candle tins at once, but we're not there yet.”

This is a recurring theme I have seen across multiple industries. In cases where we do have domestic manufacturing, it is often prohibitively expensive due to the order quantities. It also feels like there could be some creative solutions to address this.

When I asked Birdie how she is planning and making adjustments to her strategy in light of the tariffs, she shared:

“We're planning on simplifying our offerings:

• More fragrances will become seasonal, reducing the amount of inventory we need to manufacture and have on hand; some fragrances will be discontinued entirely

• Room sprays will be discontinued until the tariffs lift. They aren't an entry point for our customers

• We're going to encourage and incentivize candle refill kit orders. Knowing that our jars and lid prices are going to more than double, getting people to reuse the jars will be a huge cost-savings to us and they're significantly less expensive for our customers (full-price jars are $28; refills are $19)

• Messaging around wax melts will ramp up. Going to toot my own horn and say that our wax melts are exceptional. They're super fragrant (a 3oz box gives you ~150 hours of fragrance) and they're $10. Oh, and our packaging is plastic-free/curbside recyclable/globally compostable.

• Not taking on more expenses. This year we were planning on moving into a larger warehouse space to give us more room to grow. Instead, we found a space comparable in size to our current studio, but in a better business district, so we can build relationships. We're not taking on any additional overhead in the process.

Luckily, we've grown so much since 2020 that we've done good work in forecasting/planning, which allows us to order materials in bulk. We've strengthened relationships with existing suppliers, and found new suppliers. If we're back to our 2022 margins, I can live with that. Raising our prices would be an absolute last resort.”

Where does this leave us?

I think this is a key point for consumers. If the tariffs continue, expect to see your artisans focus on on their best sellers to manage inventory costs. Some products may need to go away in the short term. Some products simply can’t bear the price increases. Consumers should also seek out candle re-fills. I am increasingly seeing these as this part of the industry slowly ramps up.

One of the more fascinating parts of the artisan craft industry is how different it is from one area to another. Artisan candles tend to have decent profit margin. I’ve been consistently hearing from candle companies for several months that they are trying to hold the line the best they can on pricing. Most I talked with are trying to avoid price increases as long as they can.

It also strikes me that in my conversation with candle companies: these problems are solvable more easily than some other industries. We just have to decide we want to solve them.

If you loved this content on the artisan business world, head on over here and sign up to receive our free emails or for a subscription to our magazine and subscriber only content. We love being independent media, and are glad you are here reading along!