India Cigar and Cigarillos Market is Estimated to Witness High Growth Owing to Rising Consumption of Premium Cigars Among High Income Group
Cigars and cigarillos are traditionally hand-rolled from cured tobacco leaves. Premium cigars are often associated with celebrations, leisure activities or social events. An increase in high income households and rising disposable income has boosted the consumption of premium cigars and cigarillos in India. The global cigar and cigarillos market witnessed growing popularity of flavored and exotic variants. The market is also driven by innovative packaging and customization as per consumer preferences.
The global India Cigar and Cigarillos Market is estimated to be valued at US$ 3177.01 Mn 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
Rising consumption of premium cigars among high income groups has been a key driver for the India cigar and cigarillos market over the past few years. The number of high net worth individuals in India grew significantly during the last decade attributed to strong economic growth. Premium cigars are considered a luxury and status symbol among affluent consumers. This has boosted the demand for hand-rolled, premium variants in India. However, increasing health awareness and rising taxes on tobacco products may hamper the market growth over the forecast period.
SWOT Analysis
Strength: India has a large population of tobacco consumers which presents a strong customer base for the cigar and cigarillos market. There is easy availability of raw materials for cigar production within the country. The growing culture of premium smoking and rising disposable incomes offer new opportunities.
Weakness: High taxation imposed on cigars makes them relatively more expensive compared to other tobacco products. Strict regulations and policies discourage consumption. Health risks associated with cigar smoking can impact demand.
Opportunity: Potential to attract new users from the affluent demographic willing to spend on premium products. Increasing popularity of social cigar smoking occasions in bars and lounges strengthens the market. Easing of regulations over time may aid future growth prospects.
Threats: Growing health consciousness and anti-tobacco campaigns create negative consumer perception. Popularity of alternatives like e-cigarettes and heated tobacco poses threat from the substitute products. Rapid taxation changes can adversely impact revenues.
Key Takeaways
The global India cigar and cigarillos market is expected to witness high growth over the forecast period aided by rising disposable incomes and youth population. The premium segment within cigars is gaining demand supported by growth in culture of social cigar smoking. The global India cigar and cigarillos market is estimated to be valued at US$ 3177.01 in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030.
The western region currently dominates the India cigar and cigarillos market owing to high discretionary spending and presence of key urban centers. States like Maharashtra and Gujarat contribute significantly to the market revenues. The southern region demonstrates fast growth backed by increasing adoption in cities like Chennai and Bengaluru.
Key players
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. These manufacturers focus on premium cigar brands and expanding distribution across major cities.
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