The Sweet Aroma from the Land of Plenty.

Whether it is for religious purposes, medicinal value or simply for its pleasant fragrance, agarbatti is a product found across almost every Indian home. Today, the Indian market is flooded with agarbattis [also known as joss stick in China or incense stick in other countries] of various colours, fragrances and qualities. But, the market for agarbatti is not by any means limited to India. People across the globe, whether they be in US or UK, Malaysia or Ethiopia enjoy agarbatti as much as Indians do – opening up a global market for exporters.

Agarbatti, mostly a handmade product [in India], is exported to almost the entire known world from India. While many countries are known for selling unscented or raw incense sticks, India is known for its perfumed versions.

In India, a wide variety of agarbattis are available in different shapes, colours and fragrances at very competitive prices, from sandalwood to lavender, and rose to mogra. Buyers are practically spoilt for choice. Adding to the brag-bucket is the fact that India-made agarbattis are considered to be one of the best in the world – no wonder, we enjoy such a vast customer-base across the globe. So, how attractive is the market?

It’s in the air

The contribution of agarbatti to India’s exports business may not have attracted much attention as it accounts for a mere 0.04% of India’s total exports. But a deeper look at the numbers tells a story of a niche export product with tremendous potential. This product has seen a steady demand in overseas markets, irrespective of economic or political climate.

From India to the world

India exports most of it's Agarbatti to United States, United Kingdom and Australia and is the largest exporter of Agarbatti in the World. The top 3 exporters of Agarbatti are India with 68,487 shipments followed by China with 13,395 and Vietnam at the 3rd spot with 10,777 shipments.

Ancient practise

The practice of incense as a healing tool was assimilated into the religious practices of the time. As Hinduism matured and Buddhism was founded in India, incense became an integral part of Buddhism as well. Around 200 CE, a group of wandering Buddhist monks introduced incense stick making to China.

The oldest written source on incense is the Vedas, specifically, the Atharva-veda and the Rigveda, which set out and encouraged a uniform method of making incense. Although Vedic texts mention the use of incense for masking odors and creating a pleasurable smell, the modern system of organized incense-making was likely created by the medicinal priests of the time. Thus, modern, organized incense-making is intrinsically linked to the Ayurvedic medical system in which it is rooted.The method of incense making with a bamboo stick as a core originated in India at the end of the 19th century, largely replacing the rolled, extruded or shaped method which is still used in India for dhoop and cones, and for most shapes of incense in Nepal, Tibet and Japan. Other main forms of incense are cones and logs and benzoin resin (or ''Sambrani''), which are incense paste formed into pyramid shapes or log shapes, and then dried.

Growing trends in Indian Handmade Exports

 Handicraft is one of the most important sectors in the Indian economy employing more than seven million people. The country produces woodware, artmetal wares, handprinted textiles, embroidered goods, zari goods, imitation jewellery, sculptures, pottery, glassware, attars, agarbattis, etc. The Handcraft industry in India is dominated by female artisans with over 56% of the total artisan. The country has 744 handicraft clusters employing nearly 212,000 artisans and offering over 35,000 products. Surat, Bareilly, Varanasi, Agra, Hyderabad, Lucknow, Chennai, and Mumbai are among the major clusters. Most of the manufacturing units are in rural and small towns, and there is enormous market potential in all Indian cities and abroad.

Significant advances in the availability of handicraft products on various online portals are bolstering market growth in India. Handicrafts are becoming increasingly popular as the country's travel and tourism industry grows. Tourists spend significant money on souvenirs and other craft items, expanding the opportunity for local artisans and craftspeople to produce and sell efficient handicrafts. Furthermore, rising demand for handmade décor accessories in homes, offices, and restaurants and rising demand from the gifting industry are propelling market growth. The sector is economically viable with low capital investment, high value addition ratio and high export potential.

India is one of the largest handicrafts exporting country and a clear leader in the homemade carpet segment both in terms of volume and value. In May 2022, the total handicraft export, excluding handmade carpets from India was US$ 120.06 million, a 1.01% increase from April 2022. During 2021-22, the total exports of Indian handicrafts were valued at US$ 4.35 billion, a 25.7% increase from the previous year. Over the past three years, the export of handmade goods, especially carpets, has grown steadily. India accounts for roughly 40% of global exports of handmade carpets. Carpet exports from India totalled US$ 1.37 billion in FY20. Between April 2020-February 2021, total carpet exports totalled US$ 1.33 billion. Major goods exported by India are Handmade woolen, woodwares, embroidered & crocheted goods, art metal ware, hand printed textile & scarves, agarbatties & attars, zari & zari goods, and imitation jewellery. Handicraft export of various segments from April 2020 to January 2021 stood as follows, woodwares at US$ 611.48 million, embroidered & crocheted goods at US$ 463.13 million, art metal wares at US$ 353.92 million, handprinted textiles and scarves at US$ 239.73 million, imitation jewellery at US$ 144.19 million, miscellaneous handicrafts at US$ 714.67 million. From April 2022-September 2022, total handicrafts excluding handmade carpets stood at US$ 716.21 million.

Demand for Indian handicraft products has constantly been increasing in foreign markets due to their individuality and great beauty. The major handicraft export destination for India are USA, the UK, LAC, Australia, Canada, France, Germany, Italy, Japan, Netherlands, the UAE and Switzerland. USA is the top importer of Indian handicrafts with a share of 38% of the total exports during 2020-21. India exports carpet to over 70 countries worldwide, primarily to USA, Australia, and Europe. The largest carpet export destinations for India are USA, Germany, the UK, and Australia with a share of about 57%, 6%, 5% and 5%, respectively.

USA is a significant buyer of handprinted textiles, zari woods, embroidered goods, imitation jewellery, and shawls. Carpet export to USA stood at over US$ 1.2 billion in 2021-22. The UK is a customer of Indian handicrafts, purchasing art items, crocheted items, handmade handicrafts, wood wares, and imitation jewellery. The country has also been a major importer of Indian handmade carpets. UAE is one of the major buyers of handprinted textiles, embroidery goods and art metal ware.

Handprinted textiles, imitation jewellery, embroidery items, and art metals are popular purchases in Germany and the country purchased carpets worth US$ 116.64 million in 2021-22.