Under the dual pressures of fluctuating global trade dynamics and the transition to a green economy, China’s candle manufacturing sector is grappling with three major challenges: rising costs, design innovation gaps, and carbon tariff barriers. According to recent information from the China Chamber of Commerce for Import and Export of Light Industrial Products and Arts-Crafts, industry players are actively responding through innovative transaction models, cross-border design collaboration, and supply chain upgrades.
Shipping Costs and Exchange Rate Volatility Drive Transaction Model Shifts
Amid tensions in the Red Sea and fluctuating global oil prices, international shipping costs in 2023 remained significantly higher than pre-pandemic levels. Coupled with increased two-way volatility in the RMB exchange rate, exporters relying on U.S. dollar settlements face sustained profit pressures. “Over 60% of current orders now use FOB (Free On Board) terms, transferring shipping costs and exchange rate risks to overseas buyers.” Industry experts estimate this model could boost profit margins by 3-5 percentage points.
Cross-Border Design Partnerships Address “Creativity Shortfalls”
As demand grows for personalized scented candles in European and U.S. markets, Chinese manufacturers are rapidly addressing design weaknesses. At this year’s Canton Fair, a “City Memory” candle series—featuring hand-drawn Parisian illustrations and Asian botanical essential oils—secured over $5 million in orders. “We’re establishing a design studio in Milan to leverage local talent for trend forecasting,” stated the company’s global trade director.
**Carbon Tariffs Accelerate Green Supply Chain Overhauls**
With the EU proposing to include candles under its Carbon Border Adjustment Mechanism (CBAM), Chinese exporters face new compliance hurdles. Starting in 2026, draft regulations will require full lifecycle carbon emission disclosures, covering processes from palm oil cultivation and paraffin refining to transportation. A leading Jiangsu-based manufacturer has invested 20 million yuan to build a carbon tracking system and signed long-term agreements with Yunnan biomass suppliers. “We’re pursuing EPD (Environmental Product Declaration) certification from France’s Bureau Veritas, which will serve as a passport to Europe’s premium markets,” the firm’s CTO explained.
The Secretary-General of the China Chamber of Commerce emphasized that the industry’s transformation has reached a critical phase, urging companies to leverage cross-border e-commerce tools for precise demand matching and utilize the “Belt and Road” green standards mutual recognition framework to explore emerging markets. Customs data shows China’s candle exports reached $2.37 billion from January-May 2024, up 8.3% year-on-year, with high-value-added products now accounting for 34% of total exports—signaling initial success in structural upgrades.
Zhongya candle factory
whatsapp: +86//187//3296//0113
wechat: +86//156//9035//5727
Email: Betty@kangdecandle.com
Post time: May-23-2025