The India cigar and cigarillos market has seen significant growth over the past decade owing to changing lifestyles and increasing disposable income of consumers. Cigars and cigarillos are becoming popular luxury indulgence items among the young working population as well as a status symbol. Various cigar types such as hand-rolled cigars, machine-made cigars and cigarillos are available at a wide range of price points, allowing users from diverse economic backgrounds to access these products. Premium hand-rolled cigars are gaining demand from high-income individuals seeking uniqueness and quality in their smoking experience.

The global cigar and cigarillos market is estimated to be valued at US$ 3659.92 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period from 2024 to 2031.

Key Takeaways

Key players operating in the India cigar and cigarillos market are Acuity Brands Lighting Inc.,Cree Lighting,Dialight,Digital Lumens Inc.,Hubbell,LSI Industries Inc.,LumiGrow,Panasonic Corporation,Siteco GmbH,Signify Holding,Semiconductor Co. Ltd.,Zumtobel Group Ag. These players are focusing on expanding their premium cigar product lines as well as venturing into machine-made and cigarillo segments to tap the demand from various income groups.

The demand for cigars and cigarillos is growing rapidly owing to increasing purchasing power, changing social attitudes toward smoking, and growth of socializing occasions like parties and get-togethers. The COVID-19 pandemic did not dent the demand significantly as consumers continued indulgences with modified formats such as outdoor meets, home parties etc. Various new flavors are also being introduced to attract new customers.

Globally, many companies are eyeing opportunities in the India market considering its large population and rapid urbanization. Local as well international players are investing in branding, distribution and retail infrastructure to grab market share. E-commerce is also opening new avenues for product discovery and purchases. The market is expected to witness heightened competition owing to the high growth prospects.

Market drivers

Rapid urbanization in India has been a key driver for the growth of the India Cigar And Cigarillos Market Size. According to estimates, over 500 million people will be living in urban centers by 2031. People in cities typically have more exposure to global trends and indulge in western luxuries more readily. Cities also offer more places for socializing such as bars, lounges, and clubs where cigars facilitate interaction in a pleasurable ambient setting. This changing urban millennial lifestyle has spurred the demand for premium smoking experiences offered by cigars.