July 19, 2024
India Cigar and Cigarillos Market

The India Cigar and Cigarillos Market is Expected to be Flourished by Growing Popularity among Young Adults

Cigars and cigarillos are short cylindrical rolls of finely cut and fermented tobacco that are ignited so that their smoke may be drawn into the mouth. Cigar and cigarillos are derived from tobacco plants. The Indian cigar and cigarillos market is growing due to the rising popularity and consumption among young adults and growing socializing trends. Cigars and cigarillos are considered as a symbol of prestige and status. ‘

The global India Cigar and Cigarillos Market is estimated to be valued at US$ 3177.01  thousand in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics

Growing Popularity: The growing popularity of cigars and cigarillos among young adults is expected to drive the India cigar and cigarillos market growth over the forecast period. Cigars and cigarillos are considered prestigious, bold, and masculine. Moreover, cigar lounges and bars are becoming common avenues for social gatherings and business networks. This further fuels the adoption of cigars and cigarillos among young professionals in India.

Changing Social Trends: Evolving social trends and growing acceptability of cigar smoking in public places is boosting the market growth. Emerging trends such as cigars pairing with various spirits and involvement of women in cigar culture is encouraging new consumers to try cigars. The changing perception of cigars from being unfashionable to a symbol of prestige and luxury is propelling the market growth.

Segment Analysis
The India Cigar and Cigarillos market segments are Premium, Medium, and Low. The premium segment dominates the market with around 45% share led by hand-rolled cigars from AJF Cigars and Gurkha Cigar Group. Premium segment cigars are pricier but deliver better taste and aroma owing to high-quality tobaccos used in manufacturing.

PEST Analysis
Political: The government has put regulations on cigar advertising and promotions. However, taxes on cigars are relatively lower compared to cigarettes.
Economic: Rising disposable incomes and increasing consumption of luxury goods are fueling the growth of premium cigars segment. However, high unemployment during COVID-19 impacted the overall market.
Social: Cigars are generally consumed by high income groups in social settings like parties. However, increasing health awareness is lowering their social acceptance.
Technological: Manufacturers are using innovative packaging solutions to improve product visibility on shelves. Some companies offer tracking technologies to consumers for product authenticity.

Key Takeaways
The India cigar and cigarillos market size was valued at US$ 3,177.01 million in 2023 and is expected to grow at a CAGR of 4.5% during 2023-2030.

Western Region dominates with over 35% market share led by states of Maharashtra and Gujarat. The high disposable income levels and influece of pop culture in cities like Mumbai and Ahmedabad drive the regional market.

Key players operating in the India Cigar and Cigarillos market are AJF Cigars, Boutique Blends Cigars, Fenn Thompson & Co. Royal Cigar Works, Gurkha Cigar Group, Imperial Brands, Joya De Nicaragua, S.A., Scandinavian Tobacco Group, Swedish Match AB, and Swisher. AJF Cigars leads the domestic production with hand-rolled premium cigars, while Gurkha Cigar Group and Joya De Nicaragua lead imports.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it