Date : April 23, 2020
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Never ending Indian festivals and consumer rituals driving the demand of agarbatti and dhoop products

Never ending Indian festivals and consumer rituals driving the demand of agarbatti and dhoop products

India is the land of festivals and innumerable rituals which is not complete without the use of agarbatti and dhoop which makes the atmosphere filled with positive essence.

Burning agarbatti also known as incense stick is common in most of the Indian festivals. Agarbatti does not serve or relate to any one religion but is used in most of the religions during various rituals and prayers. While agarbatti is an ancient invention, it is commonly used to spread a pleasing aroma. India is the largest agarbatti and dhoop market in terms of both consumption as well as production. It is believed that India accounts for more than 2/3rd of the world agarbatti and dhoop consumption market. Apart from this, India is also one of the largest exporters of dhoop and agarbatti. In India no Puja is performed without agarbatti in case of Hindus, Muslims too light Agarbattis during their prayers or at the shrines of their great saints. The consumption varies in different regions of India depending on their choice and importance of agarbatti and dhoop in those regions. In modern days, agarbatti and dhoop are also used in houses and in other public places as air-freshener. The never-ending demand for agarbatti and dhoop is increasing in both domestic as well as foreign markets because of the improvement in quality and increase in availability of varied products.

Market Insight
As per the report “India Agarbatti & Dhoop Market, By Value & Volume, By Segment (Agarbatti, Dhoop), By Fragrance (Mogra, Jashmin, Sandal, Rose, Lavender etc.), By Packing Type (Box, Pouch), By Packing Size (0 – 25g, 26 – 50g, 51 – 100g, 101-150g etc), By Region (East, West, North, South), By Demographics (Urban, Rural), By Sales Channel (Retail stores, Departmental Stores, Specialized & Online), Overview, 2022-2028” published by Bonafide Research the findings show that agarbatti segment of the market have  been enjoying prominent position in the market with its largest presence.  Agarbatti products have been the pick of products for performing ritual which is growing at a CAGR of above 8% in last couple of years. Whereas the adaption of dhoop has picked up pace in last couple of years, as the companies had launched many new products with number of fragrances that have attracted the consumers. People in India have the habit of performing daily ritual at home or at temples or at any other place for that agarbatti and dhoop are the much needed items which are easily available in all regional stores. Retail segment of the market is considered as the prominent network for the distribution of these products as these stores are available in each locality with varied range of products. It was found with our observation that the retail trade network generates around 50% of the overall revenue generated in the market. This mode of trade have derived the market with its positive which by all mean will be reflecting in coming years when the growth is expected to be around 4% CAGR.  These are the stores that keeps consumer centric products which can be in small pack size and of lower value. The products provided in the market have large number of variants in term of pack size, shape, fragrance, length, etc. which provide more option to a customer and the customer can have their pack of agarbatti and dhoop according to their requirement and preferences.

Innovations in the market
The dhoop and agarbatti market has always been affected by the innovations. From the traditional ways of making them with essential oils to the modern era of using synthetic perfumes, the product has always been developed with respect to the time. Moreover, many companies are making innovative incense holders which reflect an antique master piece. For example, recently, a fountain shaped incense holder is developed with the Cold smoke incense. The Smoke of Incense cools down giving an effect of the Smoke fountain. Such incense was developed early by the Tibetans as a part of their daily prayer accessories. Soon, the companies caught the idea and also started developing such holders with incense and idols such as buddha, Ganesh, etc. with them.

Effective reuse of the waste
In India, every year, lakhs of tones of flowers and garlands are thrown in the water bodies after performing the pooja inside the temple. All these flowers decay and generate foul smell which in turn pollutes the river. An Up based start-up name PHOOL has found out a solution for it. The companies collect the floral garbage from the temples of the Uttar Pradesh and dry them in sunlight. The dried flowers are then powdered and Incense sticks are made by them. In this way, recycling the flowers and making profits by making incense.


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Never ending Indian festivals and consumer rituals driving the demand of agarbatti and dhoop products

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