Festive highs & operational lows: Holi’s impact on packaged mithai & snacks

Holi—the festival of colors, chaos, and, most importantly, confections—has long been a golden opportunity for sweet brands. As families gather to drench each other in hues of pink and yellow, their hands instinctively reach for a plate of piping-hot jalebis or a bite of flaky mawa gujiya. This is a season where nostalgia meets indulgence, and brands know better than to let it pass without a marketing spectacle.

But Holi 2025 isn’t business as usual. Consumer preferences are shifting faster than colours in a Holi water balloon fight. The digital-first era, regional migration trends, and a growing demand for quality and innovation are reshaping how sweet brands approach the festival. 

The sweet (and spicy) sentiment of 2025

Festivals are barometers of consumer sentiment, and this year, the outlook is brighter than ever. Sanket S., Co-founder of Scandalous Foods, observes, “For Holi 2025, we’re seeing a significant shift towards good-quality sweet offerings with a twist. Consumers are more conscious of ingredients and willing to invest in quality.”

This shift is driven by two parallel forces: a growing health-conscious demographic that scrutinises every ingredient and a thriving nostalgia-driven market that craves authentic flavors. As Rishabh Aggarwal, Head of Marketing at Bikanervala, points out, “Consumers look forward to indulging in traditional sweets, but there’s also a rising preference for healthier and innovative offerings.”

Interestingly, the demand isn’t confined to North India—the traditional stronghold of Holi celebrations. Due to migration patterns, sweets like mawa gujiya and jalebi are enjoying newfound love in southern cities like Bengaluru and Hyderabad. Sanket notes, “Earlier, gujiya wouldn't sell in the South, but now it's welcomed with open arms. We’re even innovating with products like Mysore Pak Gujiya to cater to local tastes.”

This expanded demand means brands are battling fiercer competition than ever. Everyone—from legacy mithaiwalas to new-age cloud kitchens—is jostling for consumer attention. With so many players in the game, storytelling and engagement have become the holy grail of differentiation.

Storytelling gets a digital makeover

Gone are the days when a simple TV ad with a joyous family savoring gujiya would suffice. Today’s storytelling is fast-paced, interactive, and deeply personal. Holi 2025 is witnessing an explosion of snackable content, immersive experiences, and influencer-driven narratives.

Sanket highlights the dominance of short-form video, “Instagram Reels is leading the way, with influencer marketing playing a huge role. Food bloggers and lifestyle creators are helping brands build authentic connections.”

Augmented reality (AR) filters, gamified ads, and live shopping events are also spicing up campaigns. Bikanervala, for instance, is blending nostalgia with modernity through interactive content and experiential marketing. Aggarwal shares, “Storytelling is more immersive than ever. We’re focusing on blending nostalgia with contemporary celebrations, making every bite of our sweets feel like a story.”

Live commerce—a phenomenon once limited to fashion and beauty—is making its way into the food industry. Imagine a food influencer hosting a live-streamed Holi party, showcasing a brand’s special gujiya while viewers place instant orders. This blend of entertainment and commerce is shaping up to be a propulsive strategy.

A media mix as diverse as India’s Holi celebrations

The way Holi is celebrated varies from city to city, and so does the way brands approach their marketing. North India, with its riotous gulal fights and bhang-fueled revelry, demands vibrant, high-energy campaigns. Meanwhile, in South India, where Holi is more about close-knit family gatherings, brands take a softer, more personalised approach.

Beyond being a festival of colours and confections, Holi is a major driver of tourism in India. Cities like Mathura, Vrindavan, Barsana, Jaipur, and Varanasi witness an influx of both domestic and international tourists eager to experience the vibrant celebrations firsthand. Mathura and Vrindavan, known for their week-long Holi festivities, attract thousands who revel in the cultural and spiritual essence of the festival. Jaipur’s grand royal processions and Udaipur’s regal celebrations also draw high-spending tourists, boosting local businesses. This surge in visitors spells a golden opportunity for the hospitality and F&B industries, as restaurants, sweet shops, and quick-commerce platforms see a sharp rise in demand. Many sweet brands collaborate with hotels, resorts, and event organisers to create exclusive Holi-themed menus and experiences.

Neha Rao, VP - Marketing at Bikaji, sheds light on this hyper-localised strategy: “We craft Gujiya exclusively for this season, ensuring an authentic experience. Quick commerce has transformed how people interact with brands, allowing us to reach a wider and newer audience with greater convenience.”

Experiential marketing remains a key play, with in-store sampling and festive pop-ups keeping the traditional touch alive. However, the biggest shift is happening in digital-first activations. Brands are prioritising influencer partnerships, short-form content, and regionalised messaging across platforms.

Sanket emphasises the power of quick-commerce platforms: “We’re leveraging the 10-minute food delivery surge to target maximum communities across India during Holi.” This aligns with the broader trend of impulse-driven online food orders, which see a massive spike during festive periods.

In terms of budget allocation, digital is eating into traditional media’s pie at an unprecedented rate. Television still holds sway for mass appeal, but digital activations, including live commerce and AR campaigns, are demanding bigger slices of the budget.

Price surges, innovation pressures, and keeping up with trends

Festivals aren’t just about colours and celebrations for brands—they’re also about navigating a maze of logistical and operational challenges.

One of the biggest hurdles is pricing pressure. The cost of raw materials—ghee, mawa, and dry fruits—fluctuates wildly, impacting margins. Sanket shares how Scandalous Foods is tackling this:

“We’re securing long-term contracts with suppliers and diversifying sourcing to mitigate price volatility. We’re also investing in advanced quality control and flexible production schedules to handle demand surges.”

Maintaining product innovation while ensuring consistency is another tightrope walk. The challenge lies in reinventing classic sweets without alienating traditionalists. Bikanervala is tackling this through packaging innovations and omnichannel retailing, ensuring the brand stays fresh in consumers’ minds.

Heightened competition is also a growing concern. With both heritage brands and nimble new-age players vying for attention, the need to stand out has never been greater. This is why brands are focusing on deep consumer engagement rather than just mass-market messaging. As Rao puts it, “It’s not just about the product anymore; it’s about the entire experience—how the consumer discovers, orders, and enjoys it.”

The final bite

Holi 2025 isn’t just about selling sweets—it’s about selling experiences. Brands that are merely pushing products will struggle to keep up. This year, success belongs to those who master three things: digital agility, hyper-local relevance, and product innovation.

The sweet spot lies in understanding that while gujiya, jalebi, and mithai are timeless, their marketing needs constant reinvention. Traditional players like Bikanervala and Bikaji are leaning into nostalgia while modernising their approach through experiential and digital-first strategies. Meanwhile, agile players like Scandalous Foods are leveraging quick commerce and influencer-led engagement to capture impulse-driven demand.

The market is competitive, margins are tight, and consumer expectations remain high as always. But the brands that can balance heritage with novel storytelling, innovation with authenticity, and scale with personalisation will be the real winners of Holi 2025.