Candle producers expect that the current shortage of base material supply will cause considerable supply bottlenecks of candles, specifically in the second half-year...
Candle delivery failures expected due to poor raw material supply
Brussels, 31 March 2021 – European candle producers are currently experiencing a dramatic situation – their order books are filled well, but the materials they need to meet the orders have become extremely expensive or are not available at all. The first candle producers had to cancel candle deliveries already, and the situation is expected to get worse in the second half-year 2021.
The overall candle use has increased significantly since the current crisis has started because people like to make themselves comfortable at home in these lonely and insecure times. Candle producers are therefore experiencing the strongest demand in years. But the ongoing pandemic has made global supply chains less stable over the past year, and the European candle industry is no exception unfortunately. The supply of raw materials, additives and packaging materials has become significantly more difficult and many candle producers are having serious problems to supply the requested number of candles.
Paraffin wax is the most widely used fuel for candles in Europe. Because of production downtime due to both the pandemic and maintenance and an extreme increase of the freight costs, supply has become poor and the costs for purchasing paraffin wax have increased strongly. At the moment, paraffin wax of the required grade is often not even available. Other fuels, like palm, rapeseed or other vegetable fats are no real alternative either as their prices have increased parallel to that of paraffin wax.
Shortages and price increases do not only concern fuels, however. Supply with candle containers, packaging and shipping materials has become more difficult and expensive too. Candle producers therefore expect that the current shortage of base material supply will cause considerable supply bottlenecks of candles, specifically in the second half-year when traditionally the largest volumes of candles are produced.
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