• The overall Holi business in India has grown from ₹20,000 crore to ₹60,000 crore between 2022 to 2025 

• Sectors such as Retail, tourism, hospitality, textiles, FMCG, and e-commerce witness a surge during this festival of colors 

• MSMEs can leverage this opportunity to fuel their growth by considering key aspects such as demand forecasting, financial planning, digital marketing, logistics optimization, and sustainability initiatives. 

Holi isn’t just a festival of colors or a cultural celebration. From 2022, Holi-related sales have surged by 200% and are poised to reach an estimated ₹60,000 crore in 2025¹. The booming festive economy has evolved into a massive business opportunity, especially for local vendors and small businesses across multiple industries: 

• Retail & Consumer Spending: Significant uptick in market footfall as shoppers buy colors and herbal gulaals, water balloons, sweets, traditional attire, and festive merchandise. In fact, India stands as the largest producer and exporter of Holi colors globally, especially to the United States, the Middle East, Southeast Asia, and Europe.
  

• Tourism & Hospitality: Hotels, guesthouses, and travel operators offer Holi-special packages to domestic and international tourists, thereby creating a higher demand for accommodation, food, and transportation services.

• Textile & Fashion: There’s a seasonal spike in demand for white and pastel-colored attire, a popular choice for Holi celebrations. Local boutiques, textile shops, and online retailers stock up on Holi-themed clothing, catering to both traditional and contemporary styles. 

• FMCG: The demand for festive sweets, snacks, and Holi-special beverages like gujiyas, malpua, laddoos, and thandai lead to a hike in the business of sweet shops, bakeries, and restaurants. 

• Entertainment & Event Management: The rise of large-scale Holi parties and events has created a booming market for event organizers. These events also generate opportunities across venue management, security, catering, and entertainment services. 

• E-Commerce & Online Retail: The digital shift in festival shopping leads to a surge in online sales for festive apparel, organic colors, gift hampers, and home decor. E-commerce platforms experience higher traffic and conversion rates.

The new and vigorous revenue stream for MSMEs across industries can be attributed to the boycott of Chinese goods and an increasing preference for locally made products, which has fueled a projected 20% rise in Holi-related business this year compared to 2024.

Source: CAIT 

Festive Fervor Across India

The festival season is a highly profitable period for small businesses across India, with certain regions experiencing a substantial economic boost due to large-scale celebrations. For example: 

• In Delhi NCR, business activity is projected to exceed ₹8,000 crore, driven by the demand for festive goods and over 3,000 Holi Milan events that bring communities together.

• Uttar Pradesh, particularly Mathura and Vrindavan, is renowned for its grand cultural and religious Holi festivities, including Lathmar Holi in Barsana. These events attract thousands of tourists, leading to a sharp rise in local trade, benefitting street vendors, small shop owners, and artisans selling traditional Holi merchandise.

• Rajasthan’s Jaipur, Udaipur, and Pushkar see a spike in event management services, festive décor sales, and hospitality bookings, as the state hosts royal Holi processions and vibrant public celebrations, drawing tourists from across India and abroad. 

• In Maharashtra, cities like Mumbai and Pune witness a surge in demand for premium festive gift hampers, organic colors, and traditional sweets as urban consumers increasingly opt for eco-friendly and high-quality Holi products.

• Kolkata and West Bengal celebrate Dol Jatra, a Holi variant marked by processions, devotional songs, and cultural performances. The festival creates a spike in demand for sweets, festive wear, and Holi-specific events, benefiting local confectioners, textile sellers, and event organizers. 

• Ujjain in Madhya Pradesh, home to the famous Mahakaleshwar Temple, experiences a massive influx of devotees and festival-goers, boosting sales for local businesses selling pooja items, colors, and festive foods.

Preparing MSMEs for the Holi Demand Surge 

With demand surging across industries, MSMEs must be festival-ready to capitalize on sales opportunities and handle the increased rush efficiently. By implementing strategic planning, financial preparedness, and marketing efforts, businesses can maximize their growth potential during Holi.  

1. Demand Forecasting and Inventory Management: 

• Analyze historical Holi sales data to accurately predict demand.

• Proactively stock up on high-demand products, securing bulk purchase discounts.

• Establish strong vendor relationships to ensure a reliable supply chain.

2. Financial Planning and Funding:

• Secure necessary funding through business loans or credit lines to cover increased inventory costs.

• Maintain a sufficient working capital buffer to manage day-to-day operational expenses.

• Offer pre-order or advance booking options to improve cash flow.

3. Digital Marketing and Promotion:

• Implement targeted digital marketing campaigns on social media platforms (Facebook, Instagram, WhatsApp).

• Create engaging, visually appealing content (videos, graphics) that captures the festive spirit.

• Offer attractive Holi-specific discounts, festive deals, and limited-time promotions.

• Optimize online content for search engines (SEO) to increase visibility.

• Collaborate with influencers for product promotion.

4. Logistics and Supply Chain Optimization: 

• Partner with reliable logistics providers to ensure timely and efficient order fulfillment.

• Expand warehousing and distribution capabilities to handle increased order volumes.

• Implement technology-driven tracking systems for real-time inventory and shipping management. 

5. Product and Service Differentiation: 

• Develop specialized Holi product offerings, such as curated gift hampers, organic colors, and festive decorations.

• Provide unique experiential services, including Holi-themed events, workshops, or personalized product options.

• Cater to specific customer segments, such as eco-conscious consumers, with sustainable product options.

6. Community Engagement and Partnerships: 

• Collaborate with local artisans and craftspeople to offer authentic, culturally relevant products. 

• Participate in or sponsor local Holi events and cultural festivals to increase brand visibility. 

• Establish partnerships with local vendors to create a collaborative network of festive offerings. 

7. Sustainability and Eco-Friendly Practices: 

• Offer eco-friendly products, such as biodegradable colors and organic gulal, and sustainable packaging. 

• Implement waste reduction and recycling initiatives. 

A strong financial foundation is essential for MSMEs to scale operations during Holi, and regulated NBFCs like Protium can provide timely financial support to manage bulk inventory purchases, operational expenses, and supply chain logistics. Additionally, with financing solutions, MSMEs can tackle delayed customer payments that disrupts cash flow.  

By tapping into the festival-driven market, MSMEs can grow their business and contribute to local economic development, tourism expansion, and cultural preservation, ensuring long-term benefits beyond the festive season.