Burning agarbatti and dhoop at residence or at any religious place have been have been a traditional practice in India which have shown strong adaption and a competitive market.
Since thousands of years it has been a regular practice for almost every Indians to burn agarbatti or dhoop at home or at any ritual function such as “Havan” or at any temples. This practice have been carried out with a thinking to create environment for doing worship cleanse subtler energies, attract positive energies and repel negative ones. 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 leaders. Burning agarbatti 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. These practices are not just prevalent in India but throughout the world the smoke of these products are looked forward as a worshiping practice as well as medicinal practice. These practice have been proven scientifically through modern research and have the benefits like sanitize the environment naturally and provides an efficient aroma therapy.
India is the largest agarbatti and dhoop market in terms of consumption as well as production market. According to the report “India Agarbatti & Dhoop Market, By Value & Volume, By Segment (Agarbatti, Dhoop), By Fragrance ( Mogra, Jasmine, Sandal, Rose, Lavender etc.), By Packing Type (Box, Pouch), By Packing Size (0 -25gm, 26-50 gm, 51 – 100 gm, 101-150 gm, 151 – 200 gm etc.), By Region ( East, West, North, South), By Sales Channel (Retail Stores, Departmental Stores, Specialized store & Online), By Demographics (Urban, Rural), (challenges & Trends) Outlook, 2025” published by Bonafide Research the market have been growing leaps and bounds with various range of products of agarbatti and dhoop. The market has been widely derived by the largest presence of agarbatti products which have grown with over 10% CAGR in last couple of years. However the adaption towards the dhoop products by the consumer has surged in last couple of years with the products heaving wide range of fragrance and long lasting capability. It is expected that the market of dhoop products will grow at a CAGR of above 8% In coming years. The Indian agarbatti and dhoop market provides 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. These are such type of products that are easily found in retail stored with the packs of box or pouch of smaller size and are very convenient in price for consumers. Whereas on the other hand the products are sold through some companies owned store, agarbatti wholesale, Puja store, pan shops, shops near temple, mosque, etc. gathers large number of consumers.
Difficulties observed in the market
India being the largest producer of agarbatti and dhoop, a large amount of raw material is imported due to high prices of Indian raw materials. Agarbattis sticks are made from bamboo, a key input which is imported from China or Vietnam. This is because of the stringent Indian forest regulations creating a deficit of the raw material in the country, forcing manufacturers to turn to imports. However this was due to the free trade agreement which have now been revised to restricted trade where the importers have to acquire license from the government for import purpose. The low import rate led to closure of many Indian agarbatti manufacturing plants and number of job losses. This is because the Indian bamboo sticks were found to be costlier that have allowed manufacturers to import the products and sell into the market by easing the task. To tackle this situation KVIC came up with a solution to plant certain variety of bamboo called Bamboosa Tulda which has intermodal length of 22 inches. This organisation aims to plant around 20,000 saplings of variety every year. The import duty which was brought down to 5% in 2018 have now increased to 15.5% with GST.
Few growth drivers
The demand of agarbatti and dhoop is never ending in India as well as foreign markets. Though the demand fluctuates in regions according to occasions or festivals, but the demand never goes down from a certain level due to high presence of religious people who generally never miss their prayers and poojas. The business is always on with no holidays, infact on national holidays the business is more compared to the normal days. The never-ending demand of agarbatti and dhoop provides a competitive advantage to this industry over many other industries.