Why a candle business is a strong small business
A candle making business is one of the cheapest product businesses in Britain. You need no shop, no staff and no expensive machinery — a kitchen table, a melting jug and a few kilos of wax will do. Brits spend over £400 million a year on scented candles, and the market is expected to keep growing at around 5.2% a year through to 2033.
Choose your niche first — generalists compete on price
A candle maker who sells “candles” competes with every supermarket and homeware chain. One known for a single style gets recommended for it. Pick a niche you enjoy making and that customers near you will pay for.
Luxury jar candles pay the most per unit, but wax melts are the easiest way to start — one batch makes dozens of saleable units. Keep your range small at first: three scents in two sizes will outsell ten scents nobody can choose between.
How much does it cost to start?
A genuine first batch of 20 quality soy wax candles costs about £80 to £130 in materials, and the basic equipment costs £30 to £60. A realistic startup total before your first sale is £150 to £250.
| Cost | Lean setup (kitchen table) | Equipped setup (scaling up) |
|---|---|---|
| Wax melter or pouring jug | £10 – £20 | £40 – £70 |
| Thermometer, scales, wick tools | £15 – £25 | £25 – £50 |
| Soy wax (5kg) | £25 – £35 | £50 – £100 |
| Fragrance oils | £30 – £60 | £60 – £150 |
| Jars, tins and wicks | £25 – £50 | £50 – £120 |
| Labels and packaging | £25 – £55 | £55 – £130 |
| Craft insurance | £69/year | £69 – £100/year |
| Website and hosting | £0 – £60/year | £60 – £150/year |
| Realistic total | £150 – £250 | £300 – £600+ |
One experienced maker worked out a conservative setup at £303 in total, including a £70 wax melter, £30 for 5kg of soy wax, £51 of fragrance oil and £27 of jars. Start with one wax type — soy is the safest market choice — and one proven fragrance such as vanilla, amber or fresh linen.
What to charge
Price from your costs, not from supermarket candles. Materials should be 30 to 40% of your sale price, and successful candle businesses aim for a minimum 50% profit margin. Value your own hours at the National Living Wage — £12.71 an hour from April 2026.
| Product | Typical UK price (2026) |
|---|---|
| Tealights and votives | £5 – £10 |
| Wax melt snap bar | £5 – £8 |
| Travel tin candle | £8 – £12 |
| 20cl soy jar candle | £10 – £18 |
| 30cl luxury jar candle | £18 – £28 |
Take a 20cl soy jar candle selling for £14: about £3.50 in production costs — roughly £1.50 wax, £1.00 fragrance oil, £0.50 jar and wick, £0.50 label and packaging — leaves £10.50 before your time, platform fees and tax. The same cost-plus logic applies to every service business; see our guide on how to price a cleaning business in the UK.
The legal checklist, in the right order
No licence is needed to sell handmade candles from home in the UK, but several rules still apply — and candle labelling is stricter than beginners expect.
1. Understand CLP labelling — the rule that catches beginners
Most scented candles are classified as hazardous under CLP (Classification, Labelling and Packaging) because of the fragrance oils in them. If your candle is classified, the label must carry hazard pictograms, hazard and precautionary statements, the product identifier, your business name, address and telephone number, and the nominal quantity. Candle fragrance load is typically 6 to 10%, and a 10% CLP label covers everything under 10% — you may overestimate your fragrance load, but never underestimate it. Your fragrance supplier provides a Safety Data Sheet and usually the CLP wording for your fragrance load, so buy from reputable UK suppliers such as Cosy Owl, Candle Shack or NI Candle Supplies. For the full detail, read our guide to candle safety and labelling rules in the UK.
2. Get a Toxicological Risk Assessment — and make the product safe
Candles and wax melts are not cosmetics, so they do not need a CPSR. What you do need is a Toxicological Risk Assessment proving your product is safe as sold and burned, built from your fragrance supplier’s IFRA certificate, allergen statement and Safety Data Sheet — never exceed the IFRA limit for your fragrance. Under the General Product Safety Regulations 2005, anything you sell must be safe in normal use: tested wicks that do not soot or flare, jars that do not crack with heat, and a cure time of one to two weeks so the fragrance binds properly. Add standard safety warnings to every product: never leave a burning candle unattended, keep it away from children and pets, and trim the wick before lighting. GB CLP applies in Great Britain while EU CLP applies in Northern Ireland and the EU — a UFI code is not mandatory in Great Britain but is required for EU and Northern Ireland sales.
3. Register the business with HMRC
Self-employment income up to £1,000 a year is tax-free under the trading allowance. Above £1,000, register as a sole trader with HMRC and file a Self Assessment return each year. A limited company protects your personal assets, but online incorporation costs £100 since 1 February 2026, the annual confirmation statement is £50 online, and identity verification has been mandatory for new directors since 18 November 2025. Register for VAT only if turnover passes £90,000. For the wider picture, read our guide on how to do a business in the United Kingdom.
4. Sort insurance before your first paid order
A candle is a product that burns in someone’s home, so product liability cover matters more here than in most craft businesses. Craft public and products liability insurance costs from £69 a year for £5 million of cover, or from £4.92 a month for candle-specific cover, and most UK markets require at least £5 million before they will allocate you a pitch. Read our guide to insurance for the self-employed for the main cover types.
Where to sell: Etsy, markets or your own website
Etsy is where most UK candle makers start, because buyers already search there for handmade candles. Know the fees before you price: in 2026 a UK seller pays a $0.20 listing fee (about £0.15), a 6.5% transaction fee on the item price plus postage, 4% plus £0.20 payment processing, and a 0.48% Regulatory Operating Fee, with 20% VAT added to those fees if you are not VAT registered. Realistically, Etsy takes 11 to 14% of a typical sale — and the transaction fee applies to your postage charge too, which catches beginners out.
Finding your first customers
Your first paying customers will come from people who already like your candles. Give samples to friends and family and ask for honest reviews, then list your three best scents on Etsy with clear photos and scent descriptions. Post your making process on Instagram and TikTok — pouring videos get shared far more than product photos. Partner with businesses that meet your customers first: gift shops, florists, wedding venues and cafés all stock or refer candle makers, so visit them with samples and a wholesale price list.
Common mistakes to avoid
The most expensive mistake is under-pricing: a £10 candle sounds like easy money until you count the fragrance, the jar, the Etsy fees and your hours. Second, skipping CLP labelling — a scented candle without the right hazard label cannot legally be sold, and market organisers will turn you away. Third, launching ten scents at once: untested stock ties up your money and most of it will not sell. Fourth, lighting candles before they have cured — a candle lit within days of pouring smells far weaker than one left for two weeks.
Your first 30 days, step by step
Days 1–7: Pick your niche and three scents, and order wax, fragrance oils, jars and wicks from a reputable UK supplier. Price your range from real costs, register as a sole trader with HMRC if you expect to pass £1,000 of income, and get insurance quotes.
Days 8–14: Make your first test batch — one wax, one fragrance, three vessel sizes. Check the burn, the scent throw and the wick size, and let the candles cure. Get your CLP labels and Safety Data Sheets in order for each scent.
Days 15–21: Photograph your candles in daylight, list them on Etsy, and set up a separate business bank account. Tell your network you have launched and open orders for one weekend.
Days 22–30: Deliver on time, collect reviews, and check what each candle cost in hours and materials. Adjust prices and drop the slowest scent.
Frequently asked questions
How much money do I need to start a candle making business in the UK?
A realistic startup total is £150 to £250, covering a first batch of 20 quality soy candles (£80–£130 in materials) and basic equipment (£30–£60).
Do I need a licence to sell candles in the UK?
No licence is needed, but scented candles usually need CLP hazard labelling, a Toxicological Risk Assessment, candle safety warnings and your contact details on the label.
How much can a candle maker earn?
A 20cl soy jar candle retails at £10–£18 with about £2.50–£4.50 in production costs, a gross margin on materials of 60–75%. A 20-candle-a-month operation works out at roughly £10–£16 an hour net once your time, fees and packaging are counted.
Related reading
candle safety and labelling rules in the UK
how to price a cleaning business in the UK