Yankee Candle: we are not what we make

Table of content

To understand how a company is perceived, we need to analyse how changing consumer habits and the consideration of certain products and services can impact how companies are perceived in the market. This is why companies no longer limit themselves to simply doing something, but rather tell a story that hopefully leads consumers to have a certain idea about their products. In short, it is a vicious circle that leads to changes over time, and today we will do this with Yankee Candle.

This vicious circle leads to changes that are as inevitable as they are necessary for the company to question itself more and more about its consumers and to offer them what interests them based on their habits, needs and preferences.

All this helps us understand that reducing a company to a mere “we want contacts” or “we want them to buy” is too simplistic and harmful in the long run, making us believe that we cannot do anything because “that's the way it is”, when in reality it is us who do not have the guts to change our perspective.

Let's start by understanding the cause-and-effect sequence that led to certain events and outcomes, which now seem natural to us and have led us to believe that things could not have turned out differently, but which in reality were by no means a foregone conclusion in the candle market at the time.

The NY Times (1) explains this well in an article from the mid-1980s, which attempted to analyse the scenario that was emerging at that time. When utility candle companies collapsed from 275 to just 100 (a 64% reduction), while decorative fragrance candles began their ascent.

A new concept was born, promoted by a few, very few companies that were riding the wave that had just risen:

Candles are no longer seen as a useful object for lighting, but as a decorative object for the home

Times change, habits remain

After all, it was worth it for companies, given that on the one hand there was a market in free fall, and on the other a market where people spend on average more on home furnishings, to create atmosphere and to be able to perfume the room in a new and aesthetically appealing way. This trend continues to grow after forty years (2), with 75% of consumers prioritising fragrance, validating this transformation (3) which is now a success, but during its ten-year transition period, it was unclear whether the idea would be a winning one or not.

All this is due to the idea we associate with an object. If a company conveys the same idea we have, then we will feel an affinity with what they produce because it becomes interesting to us.

If you are lucky enough to have a friend who knows the best Roman restaurant while you are there, I would not rely on online research but on their opinion, unless it is an emergency and there is no time to ask. Word of mouth remains the most effective method, and the trust we place in certain people can be applied to certain brands.

The ideal company

Yankee Candle defines itself as a company that stands out for its fragrances and premium candle production (4).

Let's start with some data on consumers, the company's potential target market, and try to understand how, based on their habits, we can use different products to find an idea that will lead them to embrace what the brand is trying to convey, regardless of its products/services:

• Consumers now explicitly value comfort, wellness, and emotional benefits over pure utility: Post-pandemic research shows 61% of women invested in more casual apparel, with 44% reduction in formal attire in wardrobes (23). This extends beyond clothing to fragrance preferences (58% appreciate scents more post-pandemic) and wellness spending (45% of employers expanding wellness budgets) (24);

• Focus on premiumization within growth categories. The strongest opportunities exist in premium segments: niche fragrances (14.5% CAGR), luxury spa services (54% market share) (10), and high-end loungewear (25). Premium positioning commands higher margins while building brand equity for future expansion;

• Build omnichannel distribution with digital emphasis. Every category shows accelerating online adoption, but physical experiences remain important for premium positioning (16). Successful strategies combine digital marketing and transactions with experiential retail and customer service.

This information gives us more insight into the industry in which Yankee Candle operates. Please note that we are not talking about the product itself, but rather the consumers who are attracted to what the company offers in terms of marketing. So we are not talking about candles or fragrances, but rather comfort. As always, we start with the data and then develop three different options for an industry (the comfort one) that is undergoing change:

The loungewear market has exploded from $16,19 billion globally in 2019 to $63-67 billion in 2024, driven by fundamental changes in work culture and the prioritisation of comfort (5, 6)

• Sales of homewear in the UK increased by 1.303% during lockdowns, marking an underlying trend that reflects permanent behavioral changes;

• In the US, where approximately 22,5 million people work from home (7), compound annual growth rates (CAGR) of between 5.5% and 10.4% are forecast for homewear by 2032, depending on the category, from underwear to casual wear (6).

It would be interesting to explore further the correlation between how comfortable homewear is and how much its fragrance and scent can influence consumer choice. The idea that “if what I'm wearing smells good, then it's comfortable.”

We have already seen that those who buy candles consider fragrances to be highly relevant in their choice (3). Would these people also be willing to expand their wardrobe by wearing Yankee Candle brand homewear? Or a detergent/fabric softener with the same fragrance they prefer for their favorite clothes?

Loungewear based on houseworkers

Spa and wellness centers demonstrate resilience and expansion.

• The USA market reached $22.5 billion in 2024 (8);

• While Europe commands $36.32 billion (36% global market share) (9).

Despite severe COVID-19 disruption (general -36.4% revenue decline in 2020), the industry has exceeded pre-pandemic levels, driven by wellness tourism growth (27% faster than general tourism) (10) and medical spa expansion (13-15% CAGR) (11). This sector benefits from demographic tailwinds: aging populations seeking preventive healthcare and millennials prioritizing self-care experiences.

How cool would it be to build a spa and try to attract people looking to relax among the fragrances of Yankee Candle?You could work on two levels:

• For workers who are increasingly looking for company benefits, having a space where they can relax, instead of having to find it on their own, perhaps with several spas scattered around the world's major business and tourist centers, would be a strong incentive to stay with/choose that company;

• For older people who can use their sense of smell as their main one, capable of evoking memories much further back in time than other senses, it would be easy not to create a luxury spa, but to create real sensory experiences with their fragrances.

I can already imagine the apricot corner with armchairs as soft as the fruit, while I sip a juice and let myself be carried away by the fragrances and someone scratching my arms. I wish I were there already...

Spa based on health-seeker

Personalized fragrances demonstrate significant potential for premiumization and segmentation:

• The combined US-Europe market reached $28.1 billion in 2024 (12,13);

• With particularly strong growth in niche segments (11.5-14.5% CAGR) (14,15) and men's fragrances (8.94% CAGR) (16).

Although COVID-19 reduced the global market from $53 billion (2019) to $43.6 billion (2020) (17,18), the recovery has been robust, driven by the influence of social media, celebrity collaborations (19), and “fragrance wardrobes” among younger consumers (20). The shift towards handmade and sustainable products (21) reflects the evolution of the candle industry from a commodity category to a premium lifestyle sector.

Here we see a pattern: people are returning to their luxuries and spending even more than before the pandemic. For example, in the tourism sector, from 2020 to 2024, there has been the same growth as from 1990 to 2020 (22), a comeback with a boom that suggests that luxury is a necessity for those who have tried it or regret not having tried it before.

This growth has been made possible by the new needs emerging during this period, new means and modes of communication, and the niches that are popping up that didn't even seem possible before (like fragrances for men, which seemed irrelevant years ago). A brand stays relevant if it can pick up on these changes.

Customised fragrances based on younger generations

The bottom line

There are other possibilities and ideas, but since each article takes time, we have decided to publish this article now and there will be updates later. Duobu was not created as yet another company ready to revolutionize the market everyday overnight, but we told ourselves that we want to do what we like, do it well, and improve little by little. As proof of this, we try to provide content that can be useful to:

1. Companies to encourage them to improve their advertising and think beyond simple “discounts” or “budget increases” to attract new customers;

2. Advertisers who are currently paralyzed by the constant changes in the marketing sector, and give them a moment to breathe where they can find inspiration to improve their work and ideas.

The conclusion we want to draw is that companies are not the product or service they offer, but are the result of a story that the brand tells and that the public perceives, with various final results:

• If the idea is inconsistent, the public understands that what they do is not valid, and you can offer the best product on the market, but no one can ignore the image you convey;

• If the idea is in line with my values, then regardless of the product, I will have a certain interest in what you do, because if you do something following a principle consistent with mine, then we will get along, even if the product has flaws.

There are many examples, but there is already a lot of information here and it would risk becoming confusing if we added more. We hope we have given some ideas to those who were looking for them, and we will update this in the future. See you!

Sources

1. NY Times - A WHIFF OF HIGH TECH COMES TO CANDLMAKING

2. Chron - How Big Is the Candle Industry?

3. Verified Market Research (2024) - Global Candle Market Size And Forecast

4. Yankee Candle - About us

5. Verified Market Research (2024) - Global Sleepwear And Loungewear Market Size

6. Market Research Future (2025) - Loungewear Market Research Report

7. NY Times (2024) - Where Are People Working Remotely?

8. ISPA Foundation (2025) - ISPA report

9. Market US - Spa Industry Statistics 2025

10. GVR - Spa Services Market Size

11. Persistence (2025) - Medical Spa Market Size

12. Markets and Data - United States Fragrance Market Share

13. Expert Market Research - Europe Fragrances Market

14. Cognitive Market Research - Luxury Niche Perfume Market Report 2025 (Global Edition)

15. Business Research Insights (2025) - Luxury Niche Perfume forecast by 2033

16. Mordor Intelligence - Fragrances Market

17. Oberlo - Fragrances Market Size 2025

18. PR Newswire - Worldwide Fragrances and Perfumes Industry to 2027 - Impact of COVID-19 on the Market

19. U.S. Chamber of Commerce - Generation Z and Men Drive Fragrance Boom

20. Euromonitor International - Revamping Digital Engagement in Fragrances

21. McKinsey - Consumers care about sustainability

22. Freetour - Tourism recovery after the COVID-19 pandemic

23. Reports and Data - Loungewear Market By Material and forecast to 2034

24. Mordor Intelligence - Spa market size trend (2025 - 2030)

25. BR Insights - Luxury Niche Perfume Market Size (2024 - 2033)