How To Start a Candle Business in 2025 (Guide and Examples)

Eager to burn the midnight oil with a new business? Consider selling homemade candles.

Learning to make candles is a practical skill that’s accessible for beginners. If you’re interested in starting a candle business, here’s how you can make money online with this popular home fragrance product.

Ready to start your business? Create your website today or learn more about Shopify’s tools for selling online and in person.

Why start a candle business?

Fortune Business Insights reports that the luxury candle market is growing rapidly, with consumers choosing to purchase “high quality lifestyle goods” for both home décor and relaxation. Commercial use of candles continues to grow, with spas using them for aromatherapy and restaurants for ambient environments.

Starting a candle business offers several benefits:

• Low startup costs. Start with minimal upfront investment.
• Flexible selling options. Sell online, at craft fairs, or local retailers.
• Simple to learn. Straightforward for beginner crafters. 
• Customizable. Create unique products to differentiate your business.

Is a candle business profitable?

Yes, a candle business can be highly profitable when you control costs and price products strategically. The global candle market is growing, on track to reach $20 billion by 2030, which creates a ton of opportunities for independent and artisan brands to thrive. 

Strong unit economics is one reason candle businesses are profitable:

• Retail pricing. An eight-ounce scented candle typically retails for $15 to $30, with luxury and premium lines commanding even higher prices.
• Gross margins. Selling direct to consumer (DTC) keeps the cost of goods sold (COGS) at or below 30% of the retail price, which can offer a gross margin of 70% or more. 
• Wholesale margins. Retailers will expect a 50% discount off your retail price, but with a low COGS, you can still earn a profit. For example, a $20 candle sold wholesale for $10 should cost you no more than $5 to produce. 

Low startup costs are also a big help. You can launch a small-batch candle business with anywhere between $500 and $2,000. This would cover starter kits, basic gear, and an initial inventory for your first 30 to 40 candles. 

Types of homemade candles to sell

One great thing about starting a candle business is the variety of products you can create. 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. Here are the most popular varieties to consider for your product line:

Soy candles

Soy candles use wax derived from soybeans, offering an alternative to traditional oil- or paraffin-based candles. Made from a renewable resource, they burn cleanly and last longer, providing better value for customers.

Scented or aromatherapy candles

These popular candles come in a range of scents for customers looking to spruce up their homes. They serve multiple purposes, from creating pleasant atmospheres to offering aromatherapy benefits.

Aromatherapy candles incorporate essential oils chosen for specific wellness benefits. For example, lavender scents are often used to promote relaxation.

Vegan candles

As more customers seek products without animal ingredients, vegan candles offer an alternative to traditional beeswax varieties. These candles use plant-based ingredients like soy wax, natural wax, and fragrance oils.

Decorative candles

Decorative candles focus on visual appeal through unique shapes, colors, and designs. While they may not be scented, they serve as distinctive home décor pieces that add character to any space.

Don’t want to make your own candles? Find popular candles and other products to sell from top Shopify brands, using Collective.

How to start your candle business

1. Do market research
2. Build your brand identity
3. Create a candle business name
4. Write a business plan
5. Register your candle business
6. Calculate your market price
7. Make candles to sell
8. Build your online store
9. Create a marketing plan

1. Do market research

Your target market—the buyers who will be most interested in your products and most likely to convert to customers—will guide your business decisions, from product development to marketing. The candle industry has three main market segments:

1. Prestige candles ($70 to $200). A fast-growing luxury segment known for premium packaging, fragrances, and brand storytelling. 
2. Mid-market candles ($30 to $80). Broad-appeal products with unique scents like rosewater or grapefruit, often found in retail outlets like Target. 
3. Mass market candles ($10 to $40). Affordable options with standard scents like vanilla or ocean breeze, dominated by brands like Yankee Candle and Bath & Body Works. 

Choose your target market based on your goals. If you want to sell in retail stores like Home Goods or Macy’s, consider mid-market products. For online boutiques and direct sales, prestige candles might be a better fit. 

Your choice will shape everything from sourcing materials to building your brand and packaging. 

2. Build your brand identity

Building a strong brand helps you build an audience, guide marketing efforts, and create better products for your customers. A strong brand strategy is especially crucial in the candle industry, which has grown significantly over the past decade.

Create a compelling brand story: A brand story helps you connect with buyers quickly. It’s the narrative that shapes your brand and becomes the foundation for your mission, message, and voice. Brand stories in the candle business should be captivating, human, and honest. They should make people feel something, which drives them to take action—whether it’s signing up, making a purchase, or making a donation. 

Take Keap Candles’ story, for example. Its founders, Harry Doull and Stephen Tracy, started making candles after becoming unhappy with their jobs in tech. They wanted to do something more meaningful and inspiring with their work and turned to candle making. 

To find your story, ask yourself:

• Why am I making candles?
• Who am I making candles for?
• What impact do I want to have on customers?
• What impact do I want to make on the world?

Visual identity. Your visual identity—including your logo, photography, website, social media, and packaging—directly influences how people feel about your home-based candle business. Since customers use your candles for both scent and décor, design products that match your audience’s aesthetic.

“My outlook on the whole brand was just to have fun. All of these experiences we’re trying to highlight are fun experiences,” says Erica Werber, founder of Literie Candles. “Being in Central Park for someone’s birthday or going to a bottomless brunch with your best friends, it’s supposed to feel good and lighthearted, and I think that’s what we accomplish with the packaging.”

3. Create a candle business name

Keep your candle business name short and simple—this makes it memorable and easy for buyers to pronounce. If customers can’t remember your name easily, you’ll miss opportunities for word-of-mouth marketing. 

Need help brainstorming? Try Shopify’s business name generator to stir up fresh ideas. Just enter a keyword, click Generate Names, and browse thousands of auto-generated name ideas for your company.

4. Write a business plan

A business plan defines your strategy, reveals potential challenges, identifies what resources you need, and helps analyze your business idea before launch. Consider key questions like: 

• What is the end goal for your brand? 
• Who are your direct competitors? 
• Will you sell in retail outlets like Target or Nordstrom? 
• Will you start an ecommerce store and sell directly to customers?

Keep these business goals in mind as you build your candle making brand.

Startup costs breakdown

Launching a candle business is quite accessible, especially if you’re willing to put in the manual labor. A small at-home operation can get you started for well under a thousand dollars. You can save even more money by buying materials and packaging in bulk to lower per-candle cost. 

Here are the estimated candle business costs to be aware of:

Funding options

The fastest and easiest route to launching a candle business is self-funding. Since startup costs can be less than $1,000, you can save money and purchase all the materials yourself without owing anyone else money. 

Another popular option for new entrepreneurs is an SBA microloan. The Small Business Administration offers loans up to $50,000 (with an average of around $13,000) through nonprofit partners. It’s a good option if you want to launch a big operation right away—you’ll need to finance inventory, equipment, and working capital.

Once your store is established and has a sales history, you may be eligible for Shopify Capital. The program offers revenue-based funding, which means you repay through a percentage of your daily sales. Once you’re feeling confident in your candle business, you can use Shopify Capital to fund your next stage of growth.

5. Register your candle business

Registering your business provides legal protection and adds credibility with customers. Here’s how to register your business:

1. Choose a business structure. While sole proprietorship is simplest, a limited liability company (LLC) offers greater legal protection by separating business and personal assets.
2. Get an employer identification number (EIN). This protects your social security number and gives your business its own tax reference.
3. Register for taxes. Check local sales tax requirements—Shopify can help you manage online sales tax. Verify if you need a business license in your state.
4. Open a business bank account. Keep personal and business transactions separate for easier tax management.
5. Consider intellectual property (IP) protection. Protect unique ideas with trademarks, copyrights, or business name patents.

6. 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 more than $100. Find the right price for your market with these steps:

1. Calculate cost of goods. Add up the cost of candle making supplies, production time, and equipment costs.
2. Include operating expenses. Factor in office supplies, legal fees, insurance, utilities, and marketing.
3. 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.

Profit margin examples

So, how much can you really make selling candles? Let’s look at two examples.

Scenario 1: The standard eight-ounce candle

• Retail price: $24
• COGS: $7.50
• Gross profit: $16.50
• Gross margin: 68.8%

After subtracting variable costs like payment processing fees ($1) and a modest customer acquisition cost for ads ($3), your margin per candle is approximately $12.50, or 52.1%.

Scenario 2: The premium 10-ounce candle

A higher-end vessel and premium fragrances allows you to charge a higher price.

• Retail price: $38
• COGS: $11.10
• Gross profit: $26.90
• Gross margin: 70.8%

Even if you spend more on ads, your margin is still strong at around $20 or $21 per candle. Premium positioning also makes the product a good fit for wholesale, and can return a 41.6% margin at a wholesale price of $19. 

7. Make candles to sell

You can create 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 Bulk Apothecary for around $10 per pound. Source glass jars from thrift stores or dollar stores. The remainder of the ingredients can be found at almost any grocery store.

Fragrance is the most important factor for customers, according to the National Candle Association, so spend time finding the right essential oils at your local craft or wellness store. Rather than offering standard floral and woodsy scents, create complex combinations that evoke nostalgic memories or intrigue.

Prep your wax and container: Take your soy wax and melt it in a double boiler on medium heat (or use a glass bowl on top of a larger pot). Stir with your spatula to break up chunks.

While the wax melts, glue the wick to the bottom of your glass container and let it dry to keep the wick in place.

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

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!

8. Build your online store

Selling candles in your own store is more profitable and gives you better brand control than online marketplaces like Amazon, which take a large cut of your profits.

While creating an online store might seem daunting, Shopify makes it simple to start without coding or a huge 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

9. Create a marketing plan 

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 work well for candle makers:

• Instagram. Many lifestyle brands find success through Instagram marketing. Curate beautiful product images, show behind-the-scenes content, and connect with micro-influencers.
• Pinterest. Home décor is a major category for Pinterest users looking for brands and products. Make Pinterest marketing a key part of your strategy.
• Snapchat. As another visual platform with more than 200 million users, you can use Snapchat marketing to reach a growing audience.
• Email marketing. Deliver promotions and brand updates directly to customers’ inboxes. Use apps like Shopify Forms to collect visitor emails for future marketing.
• Giveaways. Use product giveaways and contests to build brand awareness and demonstrate your products.
• Offline marketing. While selling online is valuable, don’t overlook in-person sales. Candles are compact and travel well—perfect for craft shows and pop-up shops. Selling in-person offers several benefits:

• 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.

Physical sales require more effort than sitting at your desk, but the right tools simplify sales. A mobile point-of-sale system like Shopify POS helps to handle transactions smoothly at markets, fairs, and pop-up shops.

Candle business tips

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

Take excellent 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
• Offering limited-edition scents
• Creating subscription boxes, like Frostbeard Studio’s Candle of the Month Club 

Expand your product line 

Experiment with different fragrance blends for varied preferences. Consider expanding into other handmade goods like soaps, shampoos, or perfumes using your signature scents, like Tofino Soap Company. You can upsell customers based on scents they buy often, create scent-centric care packages, and reach new audiences.

Focus on holiday sales

The National Candle Association reports that 35% of candle sales happen during Christmas, with 76% of buyers seeing candles as good gifts. Prepare holiday campaigns with special promotions and targeted ads.

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 just taking static product photography—we’re really showing you how it’s gonna live in your space,” says Kristen Pumphrey, P.F. Candle Co. owner. “It’s kind of sending the message: If you get this candle, this is how your space is gonna feel.”

Start your candle making business today

With the right tools, recipes, and marketing strategies, you have everything you need to turn your candle-making passion into a thriving business. Whether you start with simple soy candles or develop unique fragrance blends, your journey from DIY enthusiast to successful business owner starts here.