Clove cigarettes, commonly known as Kreteks, are cigarettes made with tobacco, cloves, and additional substances—the intensity of the spice flavor varies from brand to brand. Compared to conventional plain tobacco cigarettes, these smokes are reported to contain more carbon monoxide, nicotine, and tar. The rising popularity of clove cigarettes, particularly among Indonesia's youth, is likely to provide profitable prospects for market players. Furthermore, the market is growing due to an increase in demand for machine-made cigarettes and an increase in the number of new product launches.
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Market Dynamics
Clove cigarettes are popular among the younger population, newbies, and women smokers due to their mild flavor. Furthermore, this cigarette has less nicotine and provides smokers with less control. This characteristic has attracted casual smokers, resulting in market expansion. Clove cigarettes typically contain 60 to 80 percent tobacco, 20 to 40 percent crushed clove buds, and 20 to 40 percent clove oil. One of the primary elements fueling the expansion of the clove cigarettes industry is its great appeal among occasional smokers worldwide. Furthermore, the clove cigarettes market benefits from increased e-commerce sales channels, increased prevalence of health-related problems, smart strategic marketing activities by manufacturers, increased disposable income, and increased consumer preference for lighter cigarettes.
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Segment Analysis
The three types available are machine-rolled full-flavored, hand-rolled, and machine-rolled low-tar nicotine clove cigarettes. In the base year 2021, machine-rolled full-flavored accounted for XX percent of the market. In 2021, due to increased demand for machine-rolled full-flavored clove cigarettes, the machine-rolled clove cigarettes segment was predicted to account for the majority of revenue share during the next ten years. This is because this product type has reduced tar and nicotine levels.
Competitive Landscape
The key market players include Philip Morris International Inc., Gudang Garam, Nojorono Tobacco Indonesia, Japan Tobacco, British American Tobacco, and Wismilak Group among others. Mergers and acquisitions and investments in research and development help large market participants achieve a competitive advantage. Sampoerna, a Philip Morris International Management subsidiary, launched Platinum A in September 2017. Cherry, vanilla, strawberry, pineapple, grape, orange, menthol, cocoa, and licorice are usual tastes, coupled with cloves and tobacco to add originality to the product.
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