It is encouraging to note that Pakistan is witnessing a remarkable surge in women-led startups, marking a significant shift in the traditionally male-dominated business landscape. The country is experiencing a positive transformation as more women break barriers and establish successful startups. This growth can be attributed to changing societal attitudes, increased access to education, and a growing awareness of women's economic empowerment.
In Pakistan, the scented candles industry is predominantly led by women entrepreneurs, which is an encouraging sign. This trend indicates that women are formalizing their unpaid passions and hobbies into formal business models, resulting in a delightful array of quality products made with special care, without contributing to the toxic fast fashion/fast food consumer culture.
If you walk into any of Karachi’s popular malls, you will certainly encounter a scented candle store or stall. Recently, these candles have grown in popularity as essential home care products, particularly among the upper middle class. Consequently, over the last few years, numerous local brands have launched their lines of scented candles, which are affordable even for middle-class households.
With the new trend of using scented candles to create a cozy and romantic environment at home, the scented candle market in Pakistan is experiencing a surge in preference for locally produced products, which is an encouraging sign. This shift is likely due to the high cost of imported candles. According to a report, homeowners aged 25-45, who are interested in home decor, sustainability, and wellness, are the primary customers of these candles.
Scented candles revenue is expected to show a Compound Annual Growth Rate (CAGR) of 3.65% from 2024 to 2029, resulting in a projected market volume of $3.78 million by 2029, up from a projected $3.16 million in 2024. The number of users is expected to reach 1,011,000 by 2029, while user penetration will be 0.9% in both 2024 and 2029. Additionally, the Average Revenue Per User (ARPU) is expected to amount to $5.22.
Women entrepreneurs face numerous challenges, from legal barriers preventing them from establishing businesses to the lack of access to loans and financial know-how
Market analysts attribute the recent surge in scented candles to the discovery that these can improve mood, reduce stress and anxiety, promote relaxation, and even improve sleep. Though scented candles have been used for centuries for their pleasant fragrances, the significant increase in their consumer base is due to the mental health benefits their aromas provide.
For the Pakistani exporters of candles, the US appears to be the most attractive market in terms of export potential by 2028; followed by the United Kingdom (UK), Germany, the United Arab Emirates (UAE), and Belgium. However, in terms of total import demand across all countries, Germany holds the top position. Thus, while Germany leads in the overall import demand, the US offers high unmet demand potential for Pakistan as a trading partner.
According to a report, in 2022, Pakistan exported $109k in candles. The main destinations were Germany ($55.6k), the United Kingdom ($20.3k), Australia ($7.01k), Guatemala ($3.69k), and the United Arab Emirates ($3.49k). The global Scented Candles market size was valued at USD 604.99 million in 2021 and is expected to expand at a CAGR of 3.6% during the forecast period, reaching USD 748.07 million by 2027.
Domestically, many brands are available in the market, from Karachi Candle Company to Honey! I Am Home Candles, and the latest entrant, Litt & Co. All these ventures are run by women. With a wide range of fragrances offering soothing and refreshing aromas, there are many options to choose from. Nowadays, rose and lychee scented candles, which make your house smell like summer, are the favourites.
According to a survey, purchasers view candles as appropriate gifts for various occasions: holidays (76%), housewarming (74%), hostess/dinner parties (66%), thank you gifts (61%), and adult birthdays (58%). The rise in candle sales in malls during Mother’s and Father’s Days also indicates growth in the scented candle market.
Anna Bokhari of Honey! I’m Home Candles guarantees that she uses 100% pure beeswax and soy wax — something no other brand in Pakistan does due to its expense and time-consuming production process. Rimsha Kamal Taherani of Litt & Co. has introduced Pakistan’s first wood wick-based scented candles produced and manufactured entirely in Pakistan. The wood wick, unlike a cotton string wick, minimizes carbon buildup and soothing, ensuring cleaner burning.
As the low carbon products are uniquely poised to unlock growth by driving exports, particularly in fast-growing emerging markets, low-carbon SMEs are more than twice as likely to export (45%) than SMEs in other sectors and 67% of them are already selling to emerging economies, Rimsha expects at least 40 percent growth in wood wick-based scented candles.
Although only one percent of entrepreneurs in Pakistan are women, it is encouraging to note that the scented candles market is entirely owned by businesswomen. However, it is concerning that women entrepreneurs face numerous challenges, from legal barriers preventing them from establishing businesses to the lack of access to loans and financial know-how. There is no doubt that women’s entrepreneurship is crucial to empower women economically and boost economic growth.