How to Start a Candle Business in 5 Steps [2025 Guide]

It usually starts with one candle. Then two. Then suddenly, you’re the person with a whole shelf dedicated to “seasonal scents.” 

If this sounds familiar, starting a candle business might just be your calling. In 2025, UK customers are hungrier than ever for handmade, sustainable, and downright gorgeous candles — and you could be the one to deliver.

This guide will cover everything you need to start a candle business in the UK – from understanding fine print to marketing tricks.

Let’s begin!

Step 1: Conduct market research

Before you start dreaming up candle names like “Moonlit Meadow” or “Sunday Morning Coffee,” you need to make sure there’s actually a market for your creations.

Good market research isn’t just for the big brands — it’s your first smart move toward making candles that people actually want to buy.

⚡ Find your target audience

Ask yourself: Who am I selling to?

• Are you aiming for luxury shoppers who’ll happily pay £30 for a candle that matches their living room decor?
• Are you targeting students who want something cute but affordable for their dorm rooms?
• Maybe you’re going after eco-conscious customers who demand vegan soy wax and plastic-free packaging.

📍 Example:

If you live near a university town, you might focus on affordable, fun-scented candles for students. If you’re based in a trendy part of London, luxe minimalistic candles could be your sweet spot.

⚡ Analyse your competition

Next up, be a little nosy (in the name of research, of course).

• Which candle brands are popular right now? (Think: NEOM, Jo Malone, Diptyque)
• What makes them stand out? Their branding, their fragrances, their packaging?
• What’s missing in your local market or online?

📍 Example:

If you notice most big brands offer floral and fruity scents, but there’s hardly anyone specializing in masculine, smoky, or spicy scents, that’s a golden opportunity to carve out your niche.

⚡ Spot the trends

Candle trends aren’t just about scents — they include materials, design, and values too.

• Eco-friendly soy and coconut waxes are booming.
• Refillable and reusable candle jars are hot.
• Scented candles that double as massage oils (yes, really) are picking up steam.
• Customers love storytelling — candles named after feelings, locations, or memories sell surprisingly well.
• Cristal-infused candles are also quite trending and fun to personalise.

📍 Fun fact:

Searches for “non-toxic candles” and “vegan candles” rose sharply in 2024 and show no signs of slowing down in 2025.

Step 2: Define your brand and develop a business plan

Now that you’ve figured out who you’re selling to, it’s time to shape how you’ll show up in the market.

⚡ Craft your Unique Selling Proposition (USP)

Ask yourself (again): What makes my candles different?

• Are they handmade with rare essential oils?
• Are you using sustainable British-grown soy wax?
• Do you offer customisable labels for weddings and birthdays?

Your USP is the story you’ll tell again and again — on your website, social media, and even the little tag tied around your candle jars.

⚡ Choose a business name that sparks interest

Pick a name that:

• Reflects your vibe (luxury, playful, eco-conscious, etc.)
• Is easy to remember and spell
• Isn’t already trademarked or heavily used

📍 Example:

• Luxury vibe: "Luna Noir Candles"
• Eco-conscious vibe: "WildWick"
• Playful vibe: "Melt My Heart Co."

(And yes, it’s worth checking Instagram handles and domain name availability early — you don’t want to fall in love with a name that’s already taken.)

⚡ Design your brand identity

Your brand visuals should match your market positioning.

• Luxury brands: minimalist logos, neutral palettes, elegant packaging
• Eco-friendly brands: earthy tones, recycled materials, handwritten fonts
• Fun and youthful brands: bright colors, playful typography, bold imagery

📍  Example:

If your candles are all about relaxation and self-care, soft pastel colors, flowing fonts, and natural textures (like linen or kraft paper) can visually reinforce that feeling.

⚡ Write a business plan (Yes, you really need one)

A business plan isn’t just for impressing banks. It’s for you — to map out what you’re doing, why, and how you’re going to pull it off.

Your business plan should cover:

• Business overview: What’s your brand about?
• Target audience: Who’s buying your candles?
• Marketing plan: How will you find and reach customers?
• Financial plan: What will it cost to start? How much will you charge?
• Growth goals: Where do you want your business to be in 1 year? 5 years?

📍 Example:

If you plan to sell at local artisan markets for the first 6 months, but aim to open an online store and wholesale to boutiques within 2 years, lay that out clearly.

Step 3: Register your business and meet legal requirements

Okay, it's time to swap the dreamy candle scents for some paperwork — but don't worry, this step is way less scary than it sounds. Setting up your business properly from the start saves you a world of headaches later.

⚡Choose your business structure

First, you’ll need to decide how you want to register:

• Sole trader: Quick, easy, and perfect if you’re starting small. You just need to register with HMRC.
• Limited company: Offers more legal protection (your business and personal finances are separate), but comes with extra admin like filing annual accounts.

📍 Example:

If you’re planning to sell at markets and online casually at first, sole trader status might be ideal. But if you dream of selling in Selfridges someday, a limited company could be the better fit.

⚡ Open a business account

Even if you’re a sole trader, it’s smart to open a separate account just for your candle business.

This makes it way easier to track your income, expenses, and tax obligations. (Also, it feels pretty official when you can hand over a "WildWick Ltd." bank card.)

With ANNA’s business account, you get additional perks like:

✅ Quick setup: Open a UK business account with a sort code in around 3 minutes.

✅ Virtual & physical debit cards: Start spending right away with a virtual card; physical card arrives in 5 days.

✅ Card management: Control cards and spending limits easily in the ANNA app.

✅ Payment links: Get paid online with a personal link or webpage.

✅ Cash deposits: Pay in cash at thousands of PayPoint locations.

✅ Exclusive offers: Access special deals for ANNA customers.

✅ Apple Pay & Google Pay: Pay securely with your phone or watch.

✅ Expense cards for employees: Issue cards and manage co-worker expenses.

✅ Savings pots: Set aside money automatically for taxes or other expenses.

✅ Instant notifications: Stay on top of every payment in and out.

✅ Direct debits & standing orders: Set up regular payments for free.

✅ Cashback rewards: Earn up to 40% cashback on business expenses.

✅ Business loans: Find flexible funding options with ANNA partners.

✅ Open banking: View all your accounts in one place.

⚡  Set up basic accounting

You don’t need a full-time accountant from day one, but you do need a system to:

• Track your income
• Record your expenses (wax, jars, wicks, business cards, etc.)\
• Keep receipts safe
• Plan for taxes (remember, if you earn over £1,000 in a year from self-employment, you must declare it)

Tools you can use:

• ANNA + Taxes
• Xero
• QuickBooks
• FreeAgent

Or even a well-organised spreadsheet if you’re just starting

📍 Example:

If you spend £100 on fragrance oils and make £300 from selling candles, you’ll want a clear record of that when it’s time to file your Self-Assessment tax return.

⚡Understand VAT (Even if you’re not charging it yet)

In the UK, you must register for VAT if your turnover exceeds £90,000 (as of 2025). But even if you're not close to that yet, it’s good to know.

• If you do register, you’ll need to charge 20% VAT on most sales.
• If you don’t register, you can just focus on keeping regular income and expense records.

Step 4: Comply with UK candle regulations

Making beautiful candles is great — but making safe candles that meet UK regulations is what keeps your customers happy, your reputation strong, and your business fully legal.

1. General Product Safety Regulations (GPSR) 2005

Every product sold in the UK, candles included, must be safe for consumers. That means:

• Conducting a risk assessment: Think about what could go wrong (like fires, burns, allergic reactions) and how your product design, warnings, and instructions prevent those risks.
• Providing safety information: Include guidance like "Never leave a burning candle unattended" on your labels or packaging.

📍 Example:

You could add a simple care card inside your packaging listing safety tips in a stylish, brand-consistent way.

2. Classification, Labelling and Packaging (CLP) Regulations

Candles are legally considered mixtures (because they combine wax and fragrance oils). If your candles contain any hazardous ingredients (and many fragrance oils do), you must follow CLP rules.

Your candle label must include:

• Product name and type (e.g., "Lavender Fields Soy Candle")
• Hazard pictograms (those red diamond symbols)
• Signal words ("Warning" or "Danger")
• Hazard statements (e.g., "May cause an allergic skin reaction")
• Precautionary statements (e.g., "Keep out of reach of children")
• Allergens (like "Contains Linalool")
• Your business name and address
• Nominal quantity (how much product is inside)

👉 Important: If your fragrance oils are below a certain concentration (e.g., 1%), some CLP requirements may be relaxed — always check your suppliers’ Safety Data Sheets (SDS) for guidance.

3. Safety Data Sheets (SDS)

If you’re using fragrance oils or dyes that require CLP labels, you’ll also need to keep an SDS for each one.

This document explains all the hazards in detail.

You need it on hand for inspectors, and if you wholesale your candles to shops, they’ll often ask for it.

4. British Standards for Candle Safety (BS EN 15494)

While not a legal requirement, following British standards for candle warnings is considered best practice.

Use clear pictograms (like "Keep away from curtains" or "Do not leave unattended") and simple, easy-to-understand safety warnings.

5. Traceability

• You must be able to trace your products back to their batch.
• Label your candles (or their boxes) with a batch number or production date.
• Keep basic records of what you made and when, and where your materials came from. If there’s ever an issue with a faulty wick or fragrance batch, you’ll know exactly which products are affected.

6. Watch out: Food imitation risks

Under UK law, you can’t sell candles that could be mistaken for food, especially by children.

No candles that look too much like cupcakes, lollipops, or chocolate bars.

Even if they just smell like food (think "Vanilla Cake Batter"), you must make it very clear it’s not edible.

For example, a candle shaped like a scoop of ice cream needs packaging that clearly says "Do not eat" and looks distinctly non-food-like.

7. E-commerce and distance selling compliance

Selling online? Then you have a few extra rules to follow:

• Display your business name, address, email address, and VAT number (if applicable) on your website.
• Offer a 14-day return period under consumer law.
• Be clear about delivery times, prices, and terms and conditions.

Step 5: Source materials and set up production

Now that you’re all official and compliant, it’s time to roll up your sleeves and start gathering the magic ingredients.

⚡Find reliable suppliers

You’re going to need a few essentials:

• Wax: Soy wax, beeswax, paraffin, coconut wax — each has different burn qualities and vibes. Soy wax is a top choice if you want eco-friendly points.
• Wicks: Cotton, wood, or even hemp. Wick size matters depending on the diameter of your candle container.
• Fragrance oils or essential oils: Choose high-quality oils made specifically for candles (not all essential oils behave nicely in hot wax!).
• Dyes (optional): For colorful creations.
• Containers or molds: Jars, tins, ceramic vessels, or silicone molds for pillar candles.

⚡ Choose a production space

You don't need a massive workshop at the start. A spare bedroom, garage, or even a corner of your kitchen can work if you set it up safely.

Minimum setup needs:

• Flat, heat-resistant work surfaces
• Good ventilation (especially when pouring fragranced wax)
• Fire safety equipment (like a small fire extinguisher, just in case)

⚡ Start testing your recipes

This is where it gets exciting and slightly frustrating — but that’s normal.

You’ll need to test:

• Fragrance load: How much scent your wax can handle before it gets oily or unstable (common load is 6–10%).
• Burn time: Does your candle burn evenly and last as long as expected?
• Wick size: Too small and the flame will drown. Too big and your candle will tunnel or soot up the container.

How ANNA can help you start your candle business

When you’re busy designing scents and perfecting your packaging, the last thing you need is a pile of confusing paperwork. ANNA takes the stress out of setting up your business — and keeps it running smoothly.

✅ Register your business easily — no confusing forms, no second-guessing yourself.

✅ Open a business account to keep your candle income separate and organised.

✅ Get help managing your invoices, expenses, and taxes so you can stay focused on growing.

✅ Enjoy real human support whenever you need advice (because Google doesn’t always have the right answers)

Think of ANNA as the wick to your business candle — steady, reliable, and quietly working to keep your business burning bright.

Ready to light the first spark?

Set up your business with ANNA today and take the first real step toward turning your candle-making passion into a brand you’re proud of.