Zongzi packed in eye-catching colors and designs (file photo)

Zongzi, the sticky rice dumplings that everyone likes to gobble during the Dragon Boat Festival are a tad pricier in 2017. The cost of packaging for Zongzi has risen, creating competition between companies selling the tasty holiday tradition.

In the last two weeks, supermarkets in China have been displaying the small mountains of zongzi by the entrance, all packed in eye-catching colors and designs.

Many companies have come up with packaging aimed at children, probably because the festival falls around Children's Day. A lot of them feature cartoon figures, which appeal to customers -- and the marketing strategy seems to be working. Many customers are spending their money on the striking packages.

However, the tactic has brought problems, too. Costs of Zongzi boxes have been going up. Since the second half of 2016, some of the smaller paper-making companies have been shut down because they failed to meet environmental protection standards. That has raised the price of low-grade packaging materials by 30 percent.

The famous bakery Daoxiangcun said the prices of their Zongzi have gone up eight percent in 2017 and another, Wufangzhai, has raised prices over 20 percent. Data from research company CTR show customers usually choose Zongzi boxes priced at about 100 yuan for themselves, and at about 130 yuan as gifts for friends. China's Zongzi market in 2017 is expected to be worth five billion yuan.