With Diwali goods filling U.S. store shelves, Indian Americans express glee, “The days of buying American chocolates as Diwali gifts are over!”
Diwali-driven consumer spending may not yet match the levels of Black Friday or China’s Singles’ Day, but in the U.S., retailers are increasingly paying attention to the Festival of Lights, tailoring offerings to cater to over four million Hindus, Jains, Sikhs, and Buddhists who celebrate it.
Big-name retailers like Walmart, Target, and Costco have embraced Diwali with a variety of seasonal products. Costco, for instance, has expanded its range of Indian sweets, while TJ Maxx now offers Diwali-themed décor and gifts. This year, Diwali’s visibility in mainstream American retail has reached new heights.
“Diwali has truly arrived in the United States,” Nita Shah, a senior manager at a recruiting firm in the Chicago area, told The American Bazaar. “My dessert table this Diwali features all the mithais [sweets] I picked up from Costco. We have rasmalai, gulab jamun, and laddoos,” she adds, noting that she hadn’t seen diya sets or Diwali-themed paper plates at Costco until last year. “The days of buying American chocolates as Diwali gifts are over in America!”
Others share similar sentiments. Anu Ahuja, an HR professional who has lived in the U.S. for seven years, told the Bazaar she was “pleasantly surprised” to find Diwali-themed home décor at her local TJ Maxx in Illinois. “I picked up items not just for myself but also as gifts for relatives—things like table mats,” she says. “This visibility is much more apparent [now] than in earlier years.”
READ: South Asians have woven Diwali traditions into America’s fabric: Biden (November 14, 2023)
Gaithersburg, MD, resident Narayanan Kutty Menon noted the wide range of Diwali items now available in mainstream stores. “Anything one can imagine for Diwali—sweets, decorations, flowers, coloring materials, Diwali clothes, pooja items—anything you’d connect with Diwali in India is now available at major stores like Costco,” he says.
Menon, who has lived in the Washington, DC, area for more than a quarter century, recently purchased Diwali items from a Costco in Ashburn, VA, which has a large Indian American community. “They have a huge aisle exclusively for Diwali products,” he told the Bazaar. “This is the first time I’ve seen Costco with such a one-stop-shop section where you can just walk in and buy everything related to Diwali.”
What makes U.S. retail giants embrace Diwali?
Author Chhavi Arya Bhargava, who recently published A Kids Book About Diwali as part of the “A Kids Book About” series from DK-Penguin Random House, attributes the retail shift in the U.S. market to two main factors: the economic influence of the Indian American community and a broader cultural shift.
“Seeing Diwali represented in the products available at major retailers like Costco and Walmart is certainly linked to the economic prosperity within the Indian American community,” Bhargava told the Bazaar. “But it’s also a powerful reflection of how mainstream Diwali and our culture overall have become.”
Broader economic trends reflect the shift in retail and culture.
A recent Gallup survey on American holiday spending for 2024 found that consumers are expected to spend an average of $1,014 on holiday gifts, up from $923 in 2023. Similarly, the National Retail Federation projects a robust holiday season for U.S. retailers, with spending expected to grow between 2.5% and 3.5% over last year, totaling between $979.5 billion and $989 billion. Holiday sales have shown steady growth, averaging a 3.9% annual increase over nearly two decades. With inflation at its lowest since 2021, retailers are optimistic about a strong Q4 performance.
While the focus has traditionally been on American holidays like Halloween, Thanksgiving, and Christmas, 2024 has highlighted Diwali as an emerging driver in the holiday season. Celebrated by about a billion people worldwide, Diwali is fast becoming an economic indicator in the U.S. as well, especially in cities and regions where large Indian American population lives.
READ: Diwali at White House with South Asian Americans (October 29, 2024)
In Indian cities Diwali-related spending is projected to reach $22 billion this year — a figure smaller than the $75 billion expected for Black Friday or the $156 billion generated by Singles’ Day in China.
However, the growing spending power of the Indian American community, which had a median household income of $145,000 in 2022, combined with a cultural tradition of buying big-ticket items during Diwali, is expected to influence the U.S. economic outcomes in Q4.
Broader cultural significance
Beyond consumerism, sociologists note a growing awareness of Diwali’s cultural significance in the U.S. Bhargava says this expanding recognition was one reason for the timing of her book’s release.
“Diwali has never been bigger or more important in America than right now. To some degree, that made this the perfect moment to write and release a book like mine,” she explains.
Along with a diverse editorial and publishing team, Bhargava aimed to tell an inclusive tale, and not solely target the South Asian diaspora with the book.
“As we collaborated to write A Kids Book About Diwali and bring it to the American market, we challenged ourselves to think beyond a superficial description of the holiday. Instead, we aimed to tell a more inclusive story, making Diwali and its history relatable to everyone”
Bhargava’s approach emphasizes accessibility in both content and distribution. “We sought partnerships to make it available in major bookstores, online platforms, libraries, and schools. Timing was also crucial. With Diwali becoming a school holiday in more regions and educators increasingly looking for inclusive resources, there was strong demand for materials to support teachers and families in celebrating Diwali meaningfully. The decision to launch now was also driven by the growing national recognition of Diwali—there’s a readiness for more inclusive narratives, and I believe this is just the beginning.”
She further highlights the growing embrace of multiculturalism in the U.S., noting that today, when Americans say “holidays,” the term “no longer refers only to Christmas.”
“Retailers are recognizing this and tapping into a broader demographic,” Bhargava says. “As Diwali goods hit more shelves across the country, we’re seeing a holiday once thought of as ‘ethnic’ emerging as an integral part of the American cultural and economic landscape. I believe this broad acceptance will continue to create new economic opportunities for all South Asian entrepreneurs, reaching even more retailers in the future.”