In the crowded aisles of Yiwu International Trade City, Mr. Chen, a candle trader with nearly two decades of experience, furrowed his brow. In previous years, his warehouse would have been packed with scented candles for the European and American Christmas season by now. This year, however, the space feels unsettlingly empty. “Orders have dropped by about 15% compared to the same period last year,” he said, gesturing toward sparse display shelves. “Customers are hesitating, shipping costs have soared, and their requirements have become more complicated.”
Mr. Chen’s predicament is far from unique. Once considered a stable industry, candle manufacturing is being profoundly reshaped by global geopolitical and economic shifts. From energy crises and environmental barriers to geopolitical conflicts, multiple pressures are subjecting China—the world’s largest candle producer and exporter—to unprecedented challenges and growing pains of transformation.
**Soaring Energy Prices Dim Europe’s “Candle-Warming” Boom**
The ripple effects of the Russia-Ukraine conflict hit first. Historic surges in European natural gas prices triggered by the war unexpectedly ignited demand for traditional candles—especially thick, heat-emitting varieties—during the winter of 2022–2023. “Candle-warming” became a temporary phenomenon, boosting exports of such candles from China. However, as Europe adjusted its energy supply structure and prices retreated from their peak, this “abnormal windfall” quickly faded. Since the second half of 2024, economic sluggishness and rising living costs have made European consumers more cautious about non-essential spending, leading to a noticeable decline in demand for ordinary lighting candles and mid-range scented varieties. Customs data show that China’s candle exports to the EU grew by a mere 1.2% year-on-year in Q1 2025—far below the double-digit growth of previous years—with actual sales volumes likely declining after adjusting for inflation.
**Tightening Green Regulations Raise Trade Barriers**
A tougher challenge comes from increasingly stringent international trade rules. The EU, one of China’s most important candle export markets, continues to upgrade chemical controls under its REACH regulation. In 2024, the bloc further restricted limits on harmful substances like **polycyclic aromatic hydrocarbons (PAHs)** in candles and imposed stricter traceability requirements for paraffin sources and additives. Similar regulations have been enacted in places like California, U.S.
“Every batch of candles bound for the EU—especially paraffin-based ones—now requires more detailed and complex test reports and declarations of conformity,” said Ms. Wang, a quality control manager at a mid-sized candle exporter in Ningbo. “More testing items mean longer cycles and higher costs. Sometimes, testing fees alone add nearly ¥10,000 per shipment. Some older formulas had to be scrapped or completely reformulated.” This forces Chinese manufacturers to invest heavily in R&D for greener alternatives like soy wax, palm wax, and beeswax, as well as lead-free wicks and natural fragrances that meet global standards—driving up production costs.
**Red Sea Crisis Squeezes Logistics: Costs Up, Delays Mount**
Ongoing tensions in the Red Sea since late 2023 have severely reduced transit efficiency through the Suez Canal, a critical global shipping artery. Many Asia-Europe cargo ships now detour via the Cape of Good Hope, extending voyages by 10–14 days and causing fuel and insurance costs to skyrocket. This poses acute logistical pressure on candles—a product with relatively low value but high volume and weight.
“Shipping costs now account for twice the share of our export expenses,” said Mr. Li, head of a Shenzhen-based exporter specializing in holiday candles. “Before, shipping a 40-foot container to a European base port peaked at under $3,000. Now, with the detour, it’s often $7,000–$8,000 or more. Schedules are also highly unreliable, and customer complaints about delays are increasing.” To retain orders, some companies absorb part of the extra freight costs or turn to alternatives like the China-Europe Railway Express—though its capacity is limited and costs remain high.
**Market Polarization Intensifies; Innovation Becomes Key to Survival**
Under mounting pressure, the candle export market is undergoing deep polarization. Traditional, low-value-added candles face shrinking margins and fiercer competition. Meanwhile, mid-to-high-end products aligned with consumer demand for wellness, sustainability, and emotional value show stronger resilience—even growing against the trend.
“Crisis also forces transformation,” noted Zhang Ming, Secretary-General of the Daily Use Goods Branch of the China Chamber of Commerce for Import & Export of Light Industrial Products & Arts-Crafts. “Companies that innovate ahead of the curve, specialize in niche markets, and build their own brands may gain more ground amid turbulence.” One Shandong-based wax company exemplifies this: its early investment in R&D allowed its premium line of 100% natural soy wax candles scented with plant essential oils to break into high-end Western department stores and boutiques. Its exports to North America grew by over 20% in H1 2025 despite headwinds. Other agile firms are actively exploring emerging markets like the Middle East and Southeast Asia, while leveraging cross-border e-commerce to reach overseas consumers directly—cutting out middlemen and boosting profits.
**Expert View: Adapt to the New Normal, Move Up the Value Chain**
Bai Ming, Deputy Director of the Institute of International Market Research at the Chinese Academy of International Trade and Economic Cooperation (CAITEC), argues: “Global shifts are profoundly impacting even traditional labor-intensive industries like candle-making. Future competition will focus on R&D capabilities—such as eco-materials, combustion efficiency, and safety—design innovation, brand value, and the ability to meet diverse, personalized demands. Companies must shift from pure cost competition to competing on quality, sustainability, and brand strength, climbing toward the mid-to-high end of the global value chain.”
Flickering candlelight reflects the stormy seas of global trade. To navigate the fog of international uncertainty, China’s candle industry must fuel innovation as its flame and resilience as its wick—igniting new beacons of hope to illuminate a sustainable path forward.
Zhongya candle factory
whatsapp: +86//187//3296//0113
wechat: +86//156//9035//5727
Email: Betty@kangdecandle.com
Post time: Jul-04-2025