Once upon a time, incense sticks and agarbattis were mostly reserved for temples, including the mini-temples in our homes. Nowadays, though, these aromatic wonders have gone mainstream, evolving from mere purifiers to style statements. People opt for charcoal-free, complex fragrances, sustainable options, and new incense formats to show off their sophistication. ITC’s Mangaldeep brand is riding this wave too, claiming to be the household favourite in India. Infact, they say one in every four households is a Mangaldeep fan – talk about lighting up the nation, one stick at a time! “As part of the overarching ITC Next strategy, we have been driving innovation and premiumisation at Mangaldeep to offer our consumers differentiated and unique value propositions. We are the most penetrated brand by volume and the most recalled brand across the country, with a 30% top-of-mind recall in major markets,” Gaurav Tayal, divisional chief executive – agarbatti and matches business, ITC Ltd, told BrandWagon Online.
India’s incense sticks market which is currently valued at $1234.5 million, is expected to reach $1950.59 million in FY2032, with a CAGR of 5.89% for the forecast period between FY2025 and FY2032 reveals data from Markets & Data, a market research firm. “Premiumisation sure is the name of the game today. For instance, people today in the agarbatti market are drawing from the commodity into quasi-brands. Quasi-brands are respected and locally made and possibly bear the name of the individual who created them and from those quasi-brands, we move into brands and brands such as Mangaldeep and Cycle which dominated the market. Therefore, in the pooja items market including shoop, and agarbatti, there is a yearning to look for the better option. Now let’s take a look at the ghee market, which is fragmented into ghee which is used for pooja and ghee used for cooking purposes,” Harish Bijoor, business and brand strategy expert, explained.
The premium game
India’s incense sticks market is expected to witness a surge in demand for eco-friendly and natural products, driving innovation towards bamboo-less, charcoal-free, and organic variants to meet consumer preferences for sustainability. “Our strategy involves leveraging Mangaldeep’s brand equity to enter the premium segment. We are agile in spotting trends and bringing new products to the market. We benefit from ITC’s deep competencies in insight and data analytics, allowing us to quickly identify consumer trends,” Tayal, added.
Tayal from ITC thinks one of the reasons premiumisation is on the rise is because consumers are finally saying, “No thanks, charcoal. We’re upgrading!”, “Not to mention, consumers are now willing to pay a premium for charcoal-free agarbattis made from pure wooden dust, which we call brown bati,” he noted.
It is believed that consumers’ movement towards complex fragrances, is yet another reason behind the growth. Traditionally, the industry used simple scents like rose, lavender, mogra, and sandalwood. “However, as consumers are exposed to different environments such as shopping malls and airports and as they travel more, their appreciation for complex, perfumistic fragrances has increased. Manufacturers who can introduce unique fragrances can drive premiumisation,” he noted.
Yet another reason behind the entry of direct-to-consumer brands including Phool, which has managed to position itself as a wellness brand. “This is the category where consumers have a more emotional connection, unlike other categories such as facewash, and deodorant among others. If you observe brands like Phool – its story is not about devotion rather the positioning is about wellness and a better lifestyle. The premiumisation of the category is influenced by the consumption of such products at home, besides the fact that digital and e-commerce has helped in driving distribution,” Soumitra Karnik, an independent creative consultant said.
Spreading the fragrance to all!
As premiumisation is the name of the game across all channels, ITC claims that general trade still accounts for 80% of its business while modern trade and digital channels account for the remaining 20%. Though still small, the digital channel is growing the fastest, Tayal stated. “To give some context, the total monthly household spend in this category is barely Rs 40. If we look ahead to the next 10 years, can this number increase to Rs 200? I believe the answer is yes. This would mean that an Rs 11,000 crore category could become a Rs 50,000 crore category, indicating a large opportunity for growth,” he explained.
Regarding price points, the industry is currently divided into two broad segments. The first segment is where the price per stick is less than 50 paise. For example, a Rs 10- box might contain 20-26 sticks. Within this segment, there are various price configurations, such as Rs 10 for 26 sticks or Rs 20 for 50 sticks, etc, while the second segment, which drives higher profitability, typically has a price range between 70 paise to Rs 1.5 per stick. This segment accounts for about 40% of the industry, while the first segment, with sticks priced at less than 50 paise, represents around 60%. Meanwhile, there is also a small but fast-growing segment within the industry, driven by D2C players, where prices per stick can be much higher, around Rs 5-7. This segment, although growing, currently makes up less than 3-4% of the overall industry, according to industry estimates. Tayal claimed that the strategy at Mangaldeep has been to lead this growth, leveraging the macroeconomic tailwinds and changes in household consumption. “For instance, we have launched multiple new products, such as scented products. Another innovation is a premium product under theMangaldeep Temple sub-brand, which we call Flora Batti. Traditional agarbattis are made of charcoal and wood dust and dipped in fragrances. However, Flora Batti is made purely of resins and natural gums from trees, that have their fragrance. This product is positioned at a higher price point, around Rs five per stick, reflecting its value to consumers,” he said.
As per ITC Mangaldeep covers 80% of the ground in the North, East, and South of India. While the West remains relatively untapped, we are continuously working on strengthening our presence there. Tayal noted.
Acing the marketing
Industry experts compare interestingly, the premiumisation of the incense and agarbatti market to that of salt. Salt is a low-involvement category. No one thought consumers would one day shift from basic salt to Himalayan pink salt. Agarbatti is a highly fragmented industry with over 2000 manufacturers. The low capital expenditure required has led to a proliferation of unorganised players, which has raised concerns related to trust and quality, including the usage of harsh chemicals. Experts believe that it is here that Mangaldeep has a chance to play. “Mangaldeep is an effort of passion and from the house of ITC, it is one of the earlier brands that have identified and seized the opportunity in the pooja market. Mangaldeep can be much more than the brand that it is today. Pooja consumables versus pooja brands is a very big market, and ITC is one of the first few ones to capitalise on it,” Bijoor added.
Meanwhile, ITC claims to have implemented unique marketing strategies under the Temple sub-brand. For instance, Mangaldeep has formed associations with major temples in India, such as Kedarnath, Badrinath, the Jagannath temple in Orissa, and the Kashi Vishwanath temple in Varanasi. This initiative includes a social contribution, as the brand engages women from the districts where these temples are located, supporting livelihoods among SHG groups. “We collect flowers from these temples, dry them, and incorporate them into our agarbattis, promoting them as carrying the blessings of these sacred sites. We call this product line ‘Fragrance of Gods,’ and it has been well-received in the market,” Tayal said.
For the conglomerate, the brand strategy for Mangaldeep involves several key elements that have contributed to its top-of-mind recall of over 30%. “Firstly, among various players, we continue to be one of the largest participants in mass media, primarily television. While we selectively use print and radio, our main focus remains television,” he added. Additionally, 25-30% of its marketing spend is across digital platforms, the company said. ITC further stated that Mangaldeep has three lakh followers on Instagram and five lakh on Facebook, showcasing its digital presence and consumer engagement.
In terms of campaign strategy, the company claims to have experimented with different approaches, primarily focusing on what Mangaldeep and the agarbatti category have to offer to consumers. Recently, it launched a brand campaign aimed at establishing Mangaldeep’s viewpoint on devotion and creating lasting brand love among both current and future consumers. This campaign celebrates the diverse ways people pray across the country, emphasising different times, emotions, and methods of praying. “We aim to position Mangaldeep as an enabler of devotion, highlighting that prayers can be personal and varied, not confined to traditional settings or times. Our new campaign, with the tagline ‘Dilse karo baat bhagwan ke saath’ seeks to break the clutter by focusing on the brand’s purpose rather than just variant communication. Historically, most communications in this category have centred around product variants, but we aim to differentiate Mangaldeep by celebrating all ways of praying and presenting God as a confidant, someone you can have an honest conversation with, he said.