Report: Candles - US - August 2009 TOC

Scope and Themes
What you need to know
Definition
Data sources
Sales data
Consumer survey data
Advertising Creative
Abbreviations and terms
Executive Summary
Overview
Insights and opportunities
Competing with non-candle air care
Insect-repelling candles can do more
Marketing in a recession
FDM brands have potential to expand into other retail channels
Market sales hurt by souring economy, increasing materials costs, poor 2008 holiday season
FDMx channels dwarfed by other channels, but hurt less in recession
Candle sales down as home sales fall; trend for candles as air care can help
New/existing home sales down
Other air freshener products impinge potential for candles as air care
SCJ leads FDMx market; Yankee tops sales through all other channels
Brand qualities
Candle décor
Eco-candles
Candles that aid relaxation
Glade' s appeal to tightening household budgets
The candle consumer
Usage
Frequency of use
Candle spend
Purchasing habits and trends
Candle purchase locations
Brands purchased
Attitudes and motivations
Race and Hispanic origin
Market Size and Forecast
Key points
Ongoing recession causes sales loss
Crude oil prices impact materials costs
Seasonal sales account for 35% of all sales
Sales of candles
- Figure 1: Total U.S. sales and forecast of candles, at current prices, 2004-14
- Figure 2: Total U.S. sales and forecast of candles, at inflation-adjusted prices, 2004-14
Walmart sales
Competitive Context
Air care heats up, within and outside the market
The new competitive front: green candles
Ongoing recession hits the candle market
- Figure 3: Usage of candles compared to other types of air fresheners, January 2008 and May-June 2009
Retail Channels--Overview
Key points
Non-FDMx stores account for majority of the market
FDMx channels and all other retailers sales of candles
- Figure 4: U.S. sales of candles, segmented by channel, 2008-09
FDMx Retailers
Key points
FDMx must find further merchandising opportunities
Sales of candles through food, drug, and mass stores
- Figure 5: Total U.S. sales and forecast of FDMx candles, at current prices, 2004-14
- Figure 6: Total U.S. sales and forecast of FDMx candles, at inflation-adjusted prices, 2004-14
All Other Retailers
Key points
"Other" retailers comprise a wide range of channels
Candle specialty stores
Internet sellers
Catalogs
Direct-sellers
Sales of candles through all other retailers
- Figure 7: Total U.S. sales and forecast of all other retailers candles (non-FDMx), at current prices, 2004-14
- Figure 8: Total U.S. sales and forecast of all other retailers candles (non-FDMx), at inflation-adjusted prices, 2004-14
Market Drivers
Key points
New/existing home sales, home building down, negatively impact the candles market
- Figure 9: Sales of new single-family homes, 2006-09
- Figure 10: Sales of existing single-family homes, 2006-09
- Figure 11: Housing starts, 2006-09
Rising unemployment also means less candle buying
- Figure 12: U.S. unemployment rate, 2006-09
Scented candles face competition from other types of air fresheners
- Figure 13: Usage of candles compared to other types of air fresheners, by gender, January 2008 and May-June 2009
Women represent primary candle buyers, but men participate
- Figure 14: Frequency of buying candles, by gender, 2005-09
Leading FDMx Companies
Key points
SC Johnson still leads, but loses sales
- Figure 15: FDMx sales of leading candle companies, 2008-09
Brand Share--FDMx Brands
Key points
Leading brands feel the recessionary downturn
SC Johnson
Lancaster
Procter & Gamble
Reed
Signature Brands
- Figure 16: FDM brand sales of candles, 2008-09
Brand Share--Specialty Brands
Key points
Overview
Yankee Candle
Hanna' s Candle Co.
Chesapeake Bay Candle
PartyLite
Village Candle
Aromatique, Inc.
Brand Qualities
Companies vie for design-conscious consumers
Eco-friendly candles are heating up competition
Candles as stress relievers
Glade appeals to the thrifty consumer
Innovation and Innovators
Seasonal candles still biggest trend; botanical, green candles on the rise
- Figure 17: Trends in candle claims in new U.S. candle product launches, 2003-09
Body care candles takes the pampering trend a step further
Eco-friendly candles
Specialty candles for fun, uniqueness
Advertising and Promotion
Overview
Web marketing
Yankee
Glade
Febreze
TV spots--marketing Glade candles in a recession
Glade
- Figure 18: Glade Scented Oil Candles, 2008
- Figure 19: Glade Scented Oil Candles, 2008
- Figure 20: Glade Scented Oil Candles, 2008
Usage
Key points
Usage of candles as air fresheners slips more than other fresheners
- Figure 21: Usage of candles compared to other types of air fresheners, by gender, January 2008 and May-June 2009
- Figure 22: Usage of candles compared to other types of air fresheners, by age, May-June 2009
Frequency of Use
Key points
Purchase frequency is down significantly
- Figure 23: Frequency of buying candles and air fresheners, by gender, May-June 2009
- Figure 24: Frequency of buying candles and air fresheners, by age, May-June 2009
Candle Spend
Key points
Full-time employment, higher income, mean higher candle spending
- Figure 25: Spending per purchase on candles, May-June 2009
- Figure 26: Change from last year in spending on candles, May-June 2009
Purchasing Habits and Trends
Key points
More people are not buying candles
- Figure 27: Types of candles purchased in the last three months, by gender, January 2008 and May-June 2009
- Figure 28: Types of candles purchased in the last three months, by age, May-June 2009
Candle Purchase Locations
Key points
Mass stores most used, but all channels down from 2008
- Figure 29: Typical retail location for candle purchases, by age, May-June 2009
- Figure 30: Typical retail location for candle purchases, by household income, May-June 2009
Brands Purchased
Key points
Leading brands continue as candles of choice
- Figure 31: Candle brands purchased in past two years, January 2008 and May-June 2009
- Figure 32: Candle brands purchased in past two years, by age, May-June 2009
- Figure 33: Candle brands purchased in past two years, by household income, May-June 2009
Attitudes and Motivations
Key points
Most still use candles for air care; interest in soy candles grows
- Figure 34: Attitudes towards candle products, January 2008 and May-June 2009
- Figure 35: Attitudes towards candle products, by age, May-June 2009
Race and Ethnicity
Key points
Blacks most likely to use non-candle air care products
- Figure 36: Usage of candles compared to other types of air fresheners, by race/ethnicity, May-June 2009
Whites report fewer purchases of most types of candles
- Figure 37: Types of candles purchased in the last three months, by race/ethnicity, May-June 2009
All races buy non-candle air fresheners more than candle air fresheners
- Figure 38: Frequency of buying candles and air fresheners, by race/ethnicity, May-June 2009
Ethnicities follow the norm for brand preference
- Figure 39: Candle brands purchased in past two years, by race/ethnicity, May-June 2009
Blacks buy at dollar stores much more than other ethnicities; Asians prefer department stores
- Figure 40: Typical retail location for candle purchases, by race/ethnicity, May-June 2009
Whites appear less engaged in the candle market than other ethnicities
- Figure 41: Attitudes towards candle products, by race/ethnicity, May-June 2009
Appendix: Other Useful Consumer Tables
Usage
- Figure 61: Usage of candles compared to other types of air fresheners, by household income, May-June 2009
Frequency of use
- Figure 62: Frequency of buying candles and air fresheners, by household income, May-June 2009
Candle spend
- Figure 63: Spending on candles compared to a year ago, by gender, age hh income, race/ethnicity, employment, religion, May-June 2009
Purchasing habits and trends
- Figure 64: Types of candles purchased in the last three months, by hh income, May-June 2009
Attitudes and motivations
- Figure 65: Attitudes towards candle products, by hh income, May-June 2009
Appendix: Trade Associations