The chemical which they use for making fake snow is sodium polyacrylate, a polymer that can absorb 200-300 times water than its own mass.
Its working is quite simple, As it can absorb large quantities of water, it will take in as much water as possible, once its absorbing capactiy is over, it will not hold any more water, and then drip off and you will see snow like particles. You will also feel its cold, as there is practically a large amount of water present.
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