June 22, 2024

The India Cigar And Cigarillos Market Is Expected To Be Flourished By The Growing Demand For Premium Tobacco Products

The India cigar and cigarillos market has witnessed substantial growth in the past few years on account of the rising demand for premium tobacco products in the country. Cigars and cigarillos are mostly consumed by high-income individuals as luxury goods and have gained popularity as a status symbol. Various brands in India offer a variety of wrapper and filler tobacco blend options for cigars and cigarillos catering to different tastes and preferences. The market players are also introducing innovative packaging solutions and premium cigarillos and cigars with interesting flavors to appeal to a younger demographic.

The global India Cigar And Cigarillos Market is estimated to be valued at Us$ 3659.92 Bn in 2024 and is expected to exhibit a CAGR Of 10.% over the forecast period 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The “India Cigar and Cigarillos Market is Expected to be Flourished by the Growing Demand for Premium Tobacco Products”. One of the major drivers for the growth of the India cigar and cigarillos market is the increasing disposable income of consumers, especially in metropolitan cities. As the standard of living is improving in India, more people are able to afford luxury and premium products. Cigars and cigarillos have become coveted items symbolizing wealth and status. Additionally, the growing young adult population with high spend capacity and exposure to global trends is driving the demand for new premium tobacco varieties in the country. The market players are expected to launch innovative offerings and aggressive marketing campaigns to capture this consumer base and boost the India cigar and cigarillos market over the forecast period.

 

Segment Analysis

The India cigar and cigarillos market is dominated by the machine-rolled cigarillo segment. This segment holds around 60% of the overall market share due to higher consumption of cheap and affordable cigarillos in the country. Cigarillo’s are relatively cheaper than cigars and preferred by cost-conscious consumers as well as young consumers. Rising disposable income has increased spending on cigarillos among lower and middle-income groups in India.

PEST Analysis

Political: The government has imposed several regulations regarding the packaging, advertising and consumption of cigars and cigarillos. This includes graphic health warnings, prohibition of ads in print and electronic media. However, the tax structure remains relatively lower versus other tobacco products.

Economic: Rising incomes have increased the affordability of cigarillos, benefiting volume growth. However, inflationary pressures may negatively impact volumes if prices are raised significantly. The market also remains susceptible to changes in taxes/GST rates.

Social: Cigar and cigarillos consumption is currently more prevalent among males. However, changing social norms are slowly increasing adoption among some youth and female demographics as well. Greater social acceptance and exposure through social media also supports future growth.

Technological: Technological advancements have allowed manufacturers to develop novel machines for faster rolling of cigarillos. Automation improves productivity while maintaining consistent quality. Packaging technology is also evolving with tamper-proof, anti-counterfeit solutions.

Key Takeaways

The Global India Cigar And Cigarillos Market Demand is expected to witness high growth over the forecast period. Rising income levels are augmenting consumer spending on luxury/premium products such as cigars.

The North Indian states of Delhi, Uttar Pradesh, Punjab and Haryana account for the highest consumption of cigarillos currently due to high population densities. These states are expected to remain the key markets over the coming years.

Key players operating in the India cigar and cigarillos market are Acuity Brands Lighting Inc.,Cree Lighting,Dialight,Digital Lumens Inc.,Hubbell,LSI Industries Inc.,LumiGrow,Panasonic Corporation,Siteco GmbH,Signify Holding,Semiconductor Co. Ltd.,Zumtobel Group Ag. Among these, companies such as ITC, VST Industries, and Godfrey Phillips hold major market share. ITC dominates with its major cigarillo brands such as Gold Flake, Candyman, and Bristol. The company has established widespread distribution and production facilities across the country.

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