India Cigar and Cigarillos Market Is Estimated To Witness High Growth Owing To Rising Disposable Income and Changing Consumer Preferences
The India Cigar and Cigarillos Market is estimated to be valued at US$ 2,784.0 Th in 2020 and is expected to exhibit a CAGR of 4.5% over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
The India Cigar and Cigarillos market refers to the market for various types of cigars and cigarillos in India. Cigars are a type of rolled tobacco product, while cigarillos are smaller cigars. These products are primarily used for relaxation and socializing purposes. With the increasing disposable income and changing consumer preferences, the market is witnessing significant growth. Additionally, the rise in the number of cigar lounges and clubs has also contributed to the market growth.
B) Market Dynamics:
The India Cigar and Cigarillos market is driven by two main factors. Firstly, the rising disposable income among the middle-class population has led to an increased demand for luxury products, such as cigars and cigarillos. As people have more money to spend on leisure activities, they are willing to explore and indulge in premium tobacco products. This trend is expected to drive the market growth in the coming years.
Secondly, there has been a shift in consumer preferences towards premium and high-quality tobacco products. Consumers are becoming more conscious of the quality and origin of the tobacco they consume. They are willing to pay a premium for products that offer a unique and satisfying smoking experience. This demand for premium cigars and cigarillos from discerning consumers is expected to fuel market growth.
C) SWOT Analysis:
Strength:
1. Growing disposable income: Rising disposable income in India is driving the demand for luxury tobacco products like cigars and cigarillos.
2. Increasing number of cigar lounges: The establishment of cigar lounges and clubs provides a dedicated space for enthusiasts to indulge in their passion.
Weakness:
1. High taxes: The government imposes high taxes on tobacco products, making cigars and cigarillos expensive for some consumers.
2. Health concerns: The increasing awareness of the health risks associated with smoking may deter some potential consumers.
Opportunity:
1. Untapped potential: The Indian market for cigars and cigarillos is relatively untapped, presenting an opportunity for market players to expand their presence.
2. Growing trend of luxury experiences: The luxury experiences trend in India opens doors for premium tobacco products like cigars and cigarillos.
Threats:
1. Stringent regulations: The government regulations on tobacco products can impact the availability and marketing of cigars and cigarillos.
2. Competition from alternatives: Other tobacco products, such as cigarettes and e-cigarettes, pose a threat to the market.
D) Key Takeaways:
- The India Cigar and Cigarillos Market is expected to witness high growth, exhibiting a CAGR of 4.5% over the forecast period. The rising disposable income and changing consumer preferences are the primary drivers of this growth.
- In terms of regional analysis, the urban areas in India dominate the market, owing to the higher concentration of cigar lounges and clubs. However, rural areas are also witnessing steady growth, driven by the increasing popularity of premium tobacco products.
- Key players operating in the India Cigar and Cigarillos market include 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. These players have a strong presence in the market and offer a diverse range of premium cigar and cigarillo products.
Overall, the India Cigar and Cigarillos market is poised for significant growth in the coming years, driven by the increasing disposable income and changing consumer preferences for premium tobacco products. Market players need to capitalize on these opportunities and navigate through the challenges to establish a strong foothold in the market.
Arabic
Français
Español
Português
Deutsch
Türkçe
Dutch
Italiano
Russian
Romaian