India’s Holi Economy: How India’s festival of colors powers a multi-billion-dollar industry

Holi, one of India’s most celebrated festivals, is widely recognized for its joyous spirit, vibrant colors, and cultural significance. However, beyond the revelry, Holi has evolved into a major economic event, driving substantial revenue across multiple industries. What was once a primarily religious and community-driven celebration has now transformed into a commercially lucrative occasion, contributing significantly to India’s economy.

With an estimated market value of ₹60,000 crore ($7.2 billion) in 2025, Holi has become a key driver for businesses in retail, travel, hospitality, event management, food and beverage, and digital commerce. This article explores the financial impact of Holi, the industries benefiting from its growth, emerging market trends, and the evolving consumer behaviors that make this festival one of the most profitable times of the year.

Holi’s economic impact and market size

Holi has witnessed remarkable growth in its commercial footprint over the past decade. In 2024, the total economic activity generated by Holi was valued at approximately ₹50,000 crore ($6 billion), marking a steady 20% year-on-year growth. This expansion is fueled by increasing consumer spending, greater urban participation, and the rising influence of social media and digital commerce.

A key aspect of Holi’s commercial success lies in its multi-sector impact. The sale of colors, water guns, and festive accessories alone accounts for a ₹12,000 crore market, while travel and tourism linked to Holi contributes over ₹10,000 crore annually. The food and beverage industry, another major beneficiary, sees a revenue boost of over ₹12,500 crore, driven by traditional sweets like gujiyas, thandai, and packaged snacks tailored for festive consumption.

In addition to domestic economic activity, Holi’s influence extends beyond India’s borders. Global interest in the festival, particularly in countries with a strong Indian diaspora such as the United States, United Kingdom, Australia, and the UAE, has led to increasing demand for Holi-themed products, event tickets, and cultural experiences, creating new avenues for Indian businesses in the international market.

Key industries benefiting from Holi

Holi colors and accessories market

The colors market is at the core of Holi’s economic activity. Millions of tons of gulal (powdered colors) are sold each year, with India being the leading producer and exporter of Holi colors worldwide. While traditional chemical-based colors still dominate the market, there has been a sharp rise in demand for organic, herbal, and skin-safe colors, which are growing at a rate of 15% annually.

Several brands, such as Rangeela, Phool, Organic India, Tota, Satvik, and Cock Colours, have capitalized on this trend by launching eco-friendly Holi products. These brands not only cater to environmentally conscious consumers but also target premium markets in urban India and international territories.

The production hubs for Holi colors are primarily located in Hathras, Kanpur, and Mathura in Uttar Pradesh, where thousands of small-scale manufacturers contribute to the supply chain. The rise in demand has also given rise to organized players entering the market, offering packaged, branded, and certified organic alternatives.

Holi events and festival tourism

Holi has transcended beyond being a home or community-based celebration to a large-scale public spectacle. Urban India has witnessed a surge in ticketed Holi events, where music festivals, rain dance parties, and experiential celebrations attract lakhs of attendees.

Popular Holi events such as Holi Moo Festival (Delhi), Rang Barse (Mumbai), Balam Pichkari (Bangalore), and Royal Holi (Jaipur, Udaipur) have turned into annual commercial successes, drawing large crowds willing to pay anywhere between ₹500 – ₹5,000 for an entry pass. The overall event industry linked to Holi is estimated at ₹7,000 crore in 2025.

Similarly, Holi tourism has grown exponentially. Towns such as Mathura-Vrindavan, Pushkar, Varanasi, and Jaipur are flooded with both domestic and international tourists eager to experience the festival in its traditional form. Holi-related travel packages, curated by major tour operators, have become a billion-dollar industry, boosting the local economies of these heritage cities.

Food & beverage industry

The food and beverage sector experiences a major sales spike during Holi. The demand for traditional sweets like gujiya, laddoos, and malpua, as well as festive snacks, leads to a 30-40% increase in revenue for sweet shops and packaged food brands. The sale of thandai, a popular Holi beverage, has become a ₹1,500 crore segment within the broader food market.

Large-scale manufacturers such as Haldiram’s, Bikanervala, and Paper Boat have expanded their product lines to cater to Holi-specific demand, offering pre-packaged festive treats and flavored drinks targeted at mass consumers.

The rise of online food delivery services during Holi has further transformed the industry. Platforms like Swiggy, Zomato, and Blinkit reported a 126% increase in orders during Holi week, as more consumers opted for festive meal deliveries instead of cooking at home.

E-Commerce and digital shopping

Holi shopping is increasingly shifting online, with e-commerce sales estimated to cross ₹8,000 crore ($1 billion) in 2025. Platforms such as Amazon, Flipkart, Myntra, Ferns & Petals, and IGP have leveraged Holi’s commercial appeal by offering curated product categories, ranging from festive outfits to customized Holi gift hampers.

Social media platforms, particularly Instagram and YouTube, have played a crucial role in promoting Holi-related products. Brands are increasingly relying on influencer marketing and digital campaigns to reach younger consumers who prefer online shopping over traditional retail stores.

Emerging trends in Holi commerce

• Rise of Eco-Friendly & Sustainable Holi: As environmental awareness grows, more consumers are shifting to biodegradable pichkaris, waterless celebrations, and herbal colors. Brands offering sustainable Holi products are expected to capture 50% of the market by 2030.
• Luxury & Experiential Holi Celebrations: High-end Holi retreats in Jaipur, Udaipur, and Rishikesh are being marketed as premium experiences, with resorts charging ₹25,000+ per night for an exclusive Holi vacation.
• Corporate Holi Celebrations: Increasingly, corporates are organizing in-house Holi events, contributing an estimated ₹1,000+ crore to the festival economy.

Conclusion: Holi as a commercial powerhouse

Holi is no longer just a cultural or religious festival; it has become an economic force driving multi-billion-dollar revenues across industries. The festival’s expanding influence in retail, tourism, digital commerce, and event management makes it one of India’s most profitable seasonal opportunities.

With each passing year, new innovations and trends redefine the festival’s commercial landscape, ensuring that Holi remains not only a symbol of joy and togetherness but also a key economic driver for businesses.

Wishing everyone a very Happy Holi! May your life be filled with colors of joy, success, and prosperity!