Holi colours and accessories industry is pegged to touch Rs 12,000 crore this year by growing at a compounded annual growth rate (CAGR) of 20 per cent.
Spurred by rising demand for herbal and perfumed colours, the Holi colour industry is likely to reach Rs 4,500 crore, according to an analysis by the Associated Chamber of Commerce and Industry of India (Assocham).
The Holi accessory industry comprising water guns, spray cans, water balloons, cannons and toys is likely to touch Rs 7,500 crore.
Interestingly, 85 per cent of the Holi accessories market is captured by Chinese goods. “Majority of these goods lack in quality, but are popular amid kids, youngsters and are dominating the market due to innovative designs,” Assocham secretary general D S Rawat said while releasing the analysis.
A string of sustained campaigns and rise in public awareness against low quality, adulterated, synthetic and harmful chemical colours has driven the growth in demand for herbal and environment-friendly colours during Holi.
To ascertain the extent of demand and supply for herbal colours and Holi accessories, ASSOCHAM Social Development Foundation (ASDF) conducted a random survey of about 300 colour manufacturers and shopkeepers at Allahabad, Agra, Hathras, Mathura, Vrindavan), Delhi, Kanpur, Lucknow and Patna in February.
A majority of the manufacturers at Hathras, Kanpur, Mathura and Patna said the demand for herbal colours had been growing steadily by 30-35 per cent, while they were gradually reducing use of chemicals, dyes and oil paint as base. Colour manufacturers confirmed they had been receiving negative feedback from clients and consumers that synthetic colours had been causing skin allergies, asthma, eye infections and other significant health problems which triggered them to focus on making herbal colours.