The India cigar and cigarillos market facilitates the production and sale of tobacco rolled in leaves for smoking. Cigars and cigarillos contain tobacco that is fermented and dried. Often flavored, they are available in several sizes and shapes. Cigars generate a milder nicotine buzz and richer flavor compared to cigarettes. They are perceived as a luxurious indulgence and status symbol. Leading players in the industry roll, package, distribute and promote premium hand-rolled and machine-made cigar brands.
The Global India cigar and cigarillos Market is estimated to be valued at USD 3.0 Mn in 2024 and USD 4.2 Mn by 2031 is expected to exhibit a CAGR of 4.9% over the forecast period 2024-2031.
Rising disposable incomes and introduction of premium international brands have boosted the market. However, increasing health awareness and high taxes on tobacco products could hamper growth.
Key Takeaways
Key players operating in the India cigar and cigarillos are ITC Limited, Godfrey Phillips, Karnataka Tobacco Company, and Golden Tobacco. ITC Limited is a market leader with its Flake brand while Godfrey Phillips sells the flagship Cavendish brand.
Growing demand - Rising aspirations towards premium lifestyle products have increased the demand for hand-rolled India Cigar and Cigarillos Market Growth. Young urban professionals consume cigars and cigarillos as a symbol of affluence and success.
Global expansion - Leading players are expanding their global footprint by acquiring foreign cigar companies. They are also launching premium international brands in India to capture new customers. Export of Indian cigar brands to western nations has contributed to the global expansion of the market.
Market Key Trends
Introduction of premium brands - Leading players have focussed on launching super-premium international cigar brands such as Arturo Fuente, Macanudo, and Partagas in India. This has attracted the young HNI consumer segment. The introduction of premium brands is a key trend driving the market. Growing exposure to luxury lifestyles through global travel and internet is positively impacting the premiumization trend in the India cigar and cigarillos market.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established brand recognition create barriers for new companies.
Bargaining power of buyers: Large retailers negotiate prices with global manufacturers. Smaller retailers have less influence on pricing.
Bargaining power of suppliers: A few multinational companies dominate production and supply of tobacco leaves.
Threat of new substitutes: Products like e-cigarettes and vaporizers pose a threat, though regulated similarly to conventional cigarettes.
Competitive rivalry: Intense competition between global tobacco giants to attract customers and increase market share. Price wars can squeeze margins.
Geographical Regions
South India accounts for over 35% of the total India Cigar And Cigarillos Market Size and Trends value due to higher consumption in states like Tamil Nadu, Karnataka and Andhra Pradesh. The availability of different local varieties of cigars and cigarillos along with widespread social acceptance boosts sales volumes.
North India exhibits the fastest market growth of around 6% yearly driven by rising disposable incomes, exposure to global brands and changing social mores in urban areas. The higher population and economic growth in states like Delhi, Haryana and Punjab support the increasing demand.
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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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