💸 Exploring India's INR 12,000 Cr Incense Stick Industry

This Diwali, join us on a journey through India's incense stick industry, a truly 'Made-in-India' industry. Read on.

Diwali: that time of the year when streets are alive with lights, and the air is filled with delightful scents. As the days grow shorter and the nights longer, there's a certain magic in the air, a feeling that warms the heart. 

In the midst of this cozy and serene atmosphere, there's something else that adds to the enchantment of Diwali:

💸 Incense Sticks: An INR 12,000 Cr Industry 

Agarbatti (incense stick) and dhoop have a deep cultural and religious significance in India, and are widely used for religious and spirituality rituals, meditation, and aromatherapy. 

The fragrant scents are believed to purify the air, cleanse the soul, and connect us spiritually. 

But how big is this market?

INR 12,000 Crores! 

Yes, and it is expected to grow at a 8.17% CAGR during 2024 - 2032. 

The party's not limited to the locals. The world is queuing up for a taste of Indian incense, craving its mystique. Yes, India is the largest exporter of incense sticks, exporting to over 150 countries, with the US, the UK, Malaysia and Nigeria being the top markets.  

📈 Key Trends and Growth Drivers

When the world hit the pause button in 2020 (yes, the year that none of us want to remember), the incense stick industry saw a mixed demand. As temples and other places of worship were shut during lockdown, sales declined. But, just after a few months, industry sales grew by over 35%. Why? As people found solace at home, they turned to using agarbattis and dhoop indoors. 

In this twist of fate, traditional businesses found themselves at digital crossroads: seasoned craftsmen, who had once thrived in their physical workshops, were now suddenly navigating the realms of websites and online marketplaces.

This shift wasn’t just survival; it was the dawn of the D2C wave, where organized players in this predominantly unorganized market could flex their branding muscles and increase their margins. 

The pandemic also came with another silver lining: rise of health and wellness.

The health and wellness industry in India is set to grow at a 5.55% CAGR during 2023 - 2028. With health and wellness taking center stage in people's lives, the demand for these aromatic wonders skyrocketed. 

In this wellness revolution, meditation, yoga, fragrance and aromatherapy are key players. 

As people seek moments of peace in their hectic lives, incense sticks become integral to the experience. The aroma of rose, sandalwood, camphor and tulsi become the trusted companions for meditation and yoga.

Aromatherapy is an alternative medicinal therapy that helps recover from various disorders, including pain, cardiovascular disorders, respiratory disorders, skin-related problems, digestion problems, insomnia, and anxiety. The global aromatherapy market was worth US$ 1.9 Bn in 2022, and is expected to grow at a 11.9% CAGR during 2023 - 2030. 

💡 Key Players and Innovation

Most of the incense stick industry in India is unorganized, with the top 10 organized players contributing to only 35% of the industry. 

1. Cycle Pure Agarbathies, NR Group: 

Capturing 18% market share in 2022, Cycle Pure Agarbathies is a 75 year old business that was started at home, and is now selling over 12 billion agarbattis every year (on average) across 75 countries. The company has recently launched a patented Pure Fragrance Infusion System (PFIS), which infuses two fragrances into one incense stick. It is also one of the first agarbatti companies to be certified as a Carbon Neutral agarbatti manufacturer in the world. 

2. Mangaldeep, ITC:

Mangaldeep currently ranks 2nd in the agarbatti market in India, growing almost twice as the industry growth. With a strong focus on premiumisation and digital channels, it is adding new sustainable products to its portfolio.

3. Hem Corporation:

Founded in 1983, HEM is a manufacturer and exporter of fragrances (including agarbattis) to 80+ countries across the globe. It has developed 400 fragrances in-house, and uses 100% recyclable materials for packaging. 

4. Phool:

Phool collects over 8.4 tons of floral waste from temples in Uttar Pradesh daily and handcrafts it into charcoal-free therapeutic incense, organic and biodegradable packaging material through its ‘Flowercycling’ technology. Its products are handcrafted by women from marginalized sections of the society, providing them with better livelihoods. 

In this blend of tradition and transformation, these brands are not just crafting incense sticks; they're crafting stories. Stories of innovation that harmonize with tradition, and sustainability practices that echo a commitment to a better, greener world. 

🇮🇳 The Incense Stick Industry: A Make in India Affair 

The incense stick industry is also a powerful driver of the 'Make in India' mission, embodying the essence of cultural prominence and self-sufficiency.

Deeply rooted in cultural significance, it is a low cost, 100% made-in-India industry as most of the raw materials are sourced locally. India is the second largest producer of bamboo in the world, a primary raw material for incense sticks, with an annual bamboo production of 3.23 million tonnes.

This isn't just a manufacturing tale; it's a narrative of empowerment. 

The incense stick industry offers employment to over 4 lakh people, with 80% being women. It's a story of economic mobilization, creating employment opportunities and shifting the focus towards semi-mechanization to boost efficiency.

A truly 'Make in India, Make for the World' industry that not only captures scents but also the spirit of a nation on the rise.

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