Report Overview

Increasing significance of incense sticks in religious rituals and cultural festivals, and the products’ aromatic and therapeutic properties are projected to propel the expansion of the India agarbatti and dhoop (incense stick) market during the forecast period between 2023 and 2029.

India Agarbatti and Dhoop (Incense Stick) Market - Industry Trends & Forecast Report, 2029

India agarbatti and dhoop (incense stick) market size is expected to grow at a CAGR of 8.63% during the forecast period between 2023 and 2029. Major growth drivers for the India agarbatti and dhoop (incense stick) market include an increasing demand for agarbatti and dhoop both in domestic and international markets due to the availability of a wider range of products and improved quality. Incense sticks are an essential part of religious ceremonies and rituals in various faiths practiced in India, including Hinduism, Buddhism, and Jainism. Notably, there is a growing trend among consumers to choose natural and herbal products due to health and environmental concerns. This has led to a shift towards agarbatti made from natural ingredients and free from harmful chemicals. Also, agarbatti manufacturers offer a wide range of fragrances and packaging options to cater to different consumer preferences. This includes traditional fragrances like sandalwood, rose, and jasmine, as well as modern and exotic scents. Hence, such aspects are expected to boost the expansion of India agarbatti and dhoop market during the forecast period.

India Agarbatti and Dhoop (Incense Stick) Market – Overview

The India agarbatti and dhoop (incense stick) market refers to the industry involved in the production, distribution, and sale of agarbatti and dhoop products in India. Agarbatti, also known as incense sticks, are thin wooden sticks coated with a mixture of aromatic materials, such as natural resins, herbs, spices, and essential oils, which release a pleasant fragrance when burned. Dhoop, on the other hand, refers to thicker incense sticks or cones that have a longer burning time. These products have deep cultural and religious significance in India and are used for various purposes, including religious rituals, meditation, aromatherapy, and creating a soothing atmosphere. The market encompasses various manufacturers, suppliers, distributors, wholesalers, and retailers who cater to the demand for agarbatti and dhoop products, offering a wide range of fragrances, packaging options, and variations to meet consumer preferences. The market size and growth of the India agarbatti and dhoop market are influenced by factors such as consumer preferences, religious practices, market trends, product innovation, and regulatory frameworks.

India Agarbatti and Dhoop (Incense Stick) Market

Growth Drivers

Religious and Cultural Significance

The India agarbatti and dhoop (incense stick) market experiences significant growth due to the religious and cultural significance attached to these products. Agarbatti and dhoop hold a crucial role in religious ceremonies, rituals, and spiritual practices across diverse faiths, including Hinduism, Buddhism, and Jainism, practiced in India. The demand for these products remains constant as they are considered an integral part of worship, meditation, and creating a serene ambiance. The enduring cultural traditions and the deeply rooted spiritual connection drive the market's growth, making the India Agarbatti and Dhoop Market thrive and expand continuously.

Aromatic and Therapeutic Properties

The India agarbatti and dhoop (incense stick) market continues to witness substantial growth due to the aromatic and therapeutic properties associated with these products. Agarbatti and dhoop are not only used for religious purposes but also valued for their soothing and relaxing qualities. The aromatic fragrances released by these incense sticks create a pleasant atmosphere, promoting a sense of tranquility and well-being. The increasing awareness of aromatherapy and wellness practices among consumers contributes to the growing demand for agarbatti and dhoop in India. As a result, the market witness continuous expansion, driven by the desire for a peaceful environment and the therapeutic benefits offered by these products.

Restraints

Rising Raw Material Costs

The India agarbatti and dhoop (incense stick) market faces challenges due to the rising costs of raw materials, which restrain its growth. The production of agarbatti and dhoop requires various ingredients such as natural resins, herbs, spices, and essential oils. The escalating prices of these raw materials increase the overall manufacturing costs for agarbatti and dhoop products. This, in turn, leads to higher prices for consumers, impacting their purchasing decisions. The market's growth potential may be limited as the rising raw material costs pose challenges for manufacturers to maintain competitive pricing and profitability. Managing the impact of these cost pressures becomes crucial for sustaining the India agarbatti and dhoop market.

Impact of COVID-19 on India Agarbatti and Dhoop (Incense Stick) Market

The COVID-19 pandemic had a dual impact on the India agarbatti and dhoop (incense stick) market. Initially, the market experienced a surge in demand as people turned to these products for spiritual solace and to create a calming atmosphere at home during lockdowns. However, the market also faced challenges such as disruptions in the supply chain, raw material shortages, and labor issues. The closure of places of worship and restrictions on gatherings further affected the demand for agarbatti and dhoop. As the situation evolved, the market gradually recovered, with a renewed focus on health and wellness driving future growth in the post-pandemic era.

India Agarbatti and Dhoop (Incense Stick) Market

Segmental Coverage

India Agarbatti and Dhoop (Incense Stick) Market – By Product Type

By product type, the India agarbatti and dhoop (incense stick) market is bifurcated into Agarbatti and Dhoop segments. The agarbatti segment holds a higher share in the India agarbatti and dhoop (incense stick) market by product type. The agarbatti has a long-standing cultural and religious significance in India, making it an essential part of various rituals and ceremonies across different faiths. The agarbatti offers a wide variety of fragrances, ranging from traditional to modern and exotic scents, catering to diverse consumer preferences. Also, the demand for agarbatti has expanded beyond religious usage, with its adoption in aromatherapy, meditation, and creating a pleasant ambiance. These factors, combined with its widespread availability, have propelled the agarbatti segment to dominate the market.

India Agarbatti and Dhoop (Incense Stick) Market – By Demographics

Based on demographics, the India agarbatti and dhoop (incense stick) market is split into Urban and Rural segments. The urban segment held a higher market share in the India agarbatti and dhoop (incense stick) market. Urban areas typically have a higher population density, greater disposable income, and greater exposure to modern retail channels, which contribute to increased consumption of agarbatti and dhoop products. Additionally, urban dwellers may have a greater inclination towards lifestyle and wellness trends, including the use of incense sticks for aromatherapy and creating a pleasant home environment.

India Agarbatti and Dhoop (Incense Stick) Market – By Distribution Channel

Based on distribution channel, the India agarbatti and dhoop (incense stick) market is divided into Retail Stores, Departmental Stores, Specialized Stores, and Online Stores segments. The retail stores segment holds the highest share in the India agarbatti and dhoop (incense stick) market. The retail stores segment holds the highest market share in the India agarbatti and dhoop (incense stick) market due to factors such as convenience, accessibility, and variety. Retail stores provide a physical presence where consumers can easily purchase agarbatti and dhoop products. They offer a wide range of brands, fragrances, and packaging options, allowing consumers to choose according to their preferences. Additionally, retail stores cater to both urban and rural areas, ensuring wider reach and availability of these products. The convenience and diverse offerings provided by retail stores contribute to their dominance in capturing the highest market share. Meanwhile, the departmental store segment holds the second highest market share. Departmental stores offer a one-stop shopping experience, providing a diverse range of products, including agarbatti and dhoop, making them a preferred choice for consumers seeking convenience and variety in their purchases.

India Agarbatti and Dhoop (Incense Stick) Market – By Region

By region, the India agarbatti and dhoop (incense stick) market is segmented as North India, South India, East India, and West India.

Competitive Landscape

Major players operating in the India agarbatti and dhoop (incense stick) market include B. V. Aswathiah & Bros, Hari Darshan Sevashram Private Limited, Hem Corporation Private Limited, ITC Limited, Moksh Agarbattis Company, Mysore Deep Perfumery House (MDPH), N. Ranga Rao & Sons Private Limited, Patanjali Ayurved Limited, and Shree Kalpana Perfumery Works Private Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Product Type

• Agarbatti

• Dhoop

By Demographics

• Urban

• Rural

By Distribution Channel

• Retail Stores

• Departmental Stores

• Specialized Stores

• Online Stores

By Region

• North India

• South India

• East India

• West India