The India cigar and cigarillos market comprises hand-rolled and machine-made cigars or cigarillos that provide flavor and aroma. Cigars are made entirely from carefully fermented and aged tobacco and rolled in tobacco leaves, whereas cigarillos are smaller in size and produce less smoke. Growing social acceptance toward consuming luxury items and rising disposable income have boosted the demand for premium cigars and cigarillos in India. The market offers a diverse range of cigars, including domestic variants and imported brands to suit varied consumer preferences.
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.
Key Takeaways
Key players operating in the India Cigar and Cigarillos Market Growth are ITC, Godfrey Phillips, Karnataka Silk Industry, and Scandinavian Tobacco Group. ITC leads the domestic cigar segment with brands like Classique and Flake. Godfrey Phillips offers Dutch Masters cigarillos at affordable prices.
Growing disposable income, coupled with changing lifestyle habits, has fueled the demand for premium cigars and cigarillos in urban India. The market is witnessing strong growth in metros like Delhi, Mumbai, Kolkata, Bengaluru, and Hyderabad due to high spends by young population on luxury products.
Leading cigar companies are expanding their footprint in India via strategic partnerships with local distributors. Global players are introducing popular international cigar brands to attract new customers. Domestic manufacturers are ramping up production capacity and enhancing product offerings to strengthen their market position.
Market Drivers
Rising affluence in the middle-income group is a key driver for the India cigar and cigarillos market. High salaried professionals and young executives spend discretionary income on luxury cigars and cigarillos for socializing and brand experience. Growing popularity of smoking as a stress buster and leisure activity also spurs market growth. Cigars are increasingly consumed on special occasions like business meets, festivals, and weddings. Improving geographical availability through retail expansion further propels product demand.
The current geopolitical tensions and conflicts are impacting the growth of India Cigar And Cigarillos Market Size and Trends. With rising nationalism and protectionist trade policies being adopted by many countries, international trade barriers are increasing. This is negatively impacting the import and export of cigar and cigarillos between countries. The rising tensions between India and neighboring countries like China, Pakistan and Bangladesh have increased non-tariff barriers and inspection norms on imported goods. Moreover, the fluctuating currency exchange rates due to global economic uncertainties are adding to the business challenges.
To mitigate the effects of changing global trade dynamics on the market growth, companies must focus on strengthening their domestic supply chains and establishing strategic local partnerships. There is also a need to optimize production and logistics to improve cost efficiencies. Companies should explore new growth opportunities in emerging markets within the region that have stronger economic and trade relations with India. Adopting a diversified geographical footprint will help mitigate political and economic risks. Furthermore, leveraging new technologies like blockchain for supply chain traceability and visibility can aid transparent trade compliance.
Value wise, India Cigar and Cigarillos market is highly concentrated in metros and tier 1 cities of western and southern regions like Mumbai, Delhi, Bangalore, Chennai, Hyderabad etc. These urban centers account for over 60% of the total market value due to higher per capita incomes and spending power. However, in terms of volume growth, eastern states like West Bengal,Bihar,Jharkhand and north-eastern regions are emerging as the fastest growing markets. The young population in these areas is increasing adopting new lifestyle habits including cigars. Aggressive branding campaigns by companies and availability of cheaper local variants is driving the higher uptake of cigars consumption in the east.
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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)
