Quick export snapshot
India is one of the world’s largest exporters of incense sticks (agarbatti). Export value for incense products under HS 3307 is estimated at roughly US $140–150 million for 2023. Shipments reach well over 140 countries, with tens of thousands of consignments each year.
Market size and growth trends
The domestic agarbatti and dhoop market is valued at about US $1.2 billion in 2024 and is projected to grow steadily, nearly doubling by the early 2030s. Growth is driven by traditional rituals, gifting, wellness and meditation use, and wider availability through modern retail and direct-to-consumer channels.
Top markets and trade activity
Major destinations include the United States, Malaysia, United Arab Emirates, and a wide range of European, Middle Eastern, and Asian countries. India exports to more than 140 nations, with particularly strong demand from diaspora markets.
Product types and quality attributes
Key export formats are stick agarbatti (perfumed and unperfumed), dhoop cones, powder-based dhoop, and premium hand-rolled varieties such as the famous Mysore agarbathi. Buyers look for consistent burn time, clean ash, stable fragrance, attractive packaging, hygienic production, and reliable shelf life. Premium lines emphasize natural ingredients, higher-grade fragrances, and eco-friendly packaging.
India’s regional strengths
Traditional production clusters are concentrated in Karnataka (especially Bengaluru and Mysuru) and Tamil Nadu. Karnataka alone accounts for a large share of both national production and exports. Skills in hand-rolling, fragrance blending, and innovative packaging give Indian suppliers strong customization capability for private-label and premium orders. Mysore agarbathi also enjoys Geographical Indication status, adding to its premium appeal.
Supply chain and manufacturing
Core materials such as bamboo sticks, charcoal, binding powders, and essential oils are sourced locally and regionally. Large mechanized facilities handle high-volume uniform production, while small and medium enterprises supply hand-rolled or specialty products for the premium segment. Export packaging typically includes moisture-resistant cartons and palletization for long-distance shipping.
Regulatory and quality considerations
Exporters should maintain fragrance documentation and clear ingredient disclosures for sensitive markets. Although incense sticks are classified as household fragrance products, many buyers request tests for emissions, microbial hygiene, and burn characteristics. Safety Data Sheets for fragrance oils, batch traceability, and compliant labeling help meet importer and retailer requirements.
Challenges and risks
Price competition from other Asian producers can pressure margins, especially in the economy segment. Exporters must watch for fluctuations in raw-material costs and ensure strong packaging to prevent moisture damage. Consistency in fragrance and hygiene standards is critical to avoid shipment rejections.
Practical export details
Incense sticks generally ship under HS code 3307 (specific sub-codes such as 330741 may apply). Large orders typically move by sea freight; air is used for samples or high-value premium consignments.
Opportunities for Indian exporters
Three clear positioning strategies work well: economy lines for mass retail, premium natural or therapeutic ranges for wellness markets, and seasonal or gift collections for private-label buyers. Preparing small pilot batches with documented quality and safety data helps open doors in established markets such as the United States, UAE, UK, and Malaysia.
