April 24, 2024
India Cigar And Cigarillos Market

India Cigar and Cigarillos Market to Witness Rapid Growth Owing to High Disposable Income

The cigar and cigarillos market in India has witnessed steady growth over the past decade with the increasing spending power and high disposable incomes of consumers. Cigars and cigarillos are increasingly becoming popular premium products among urban consumers in India. Leading players in the market are introducing new product variants made from high-quality wrapper and binder tobacco to appeal to discerning smokers.

The India 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 2024 to 2031.

Key Takeaways

Key players operating in the India Cigar And Cigarillos Market Growth 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 distribution channels in smaller cities and towns to benefit from growing rural affluence.

The increasing number of luxury smokers club and cigar lounges in India present lucrative opportunities for market players to promote new products. Major players are exploring partnerships with such establishments to showcase their brands. Rising disposable incomes are also driving the growth of premium self-consumption in India.

The global leaders see immense potential for cigars and cigarillos in India and are making focused investments in manufacturing units and brand building to strengthen their foothold. Local production helps players offer competitive prices and overcome import restrictions. Many companies are also exploring exports to other Asian and African countries from their Indian facilities.

Market Drivers

The high disposable income of the rising affluent population is one of the key drivers of the India cigar and cigarillos market. As incomes rise, consumers are spending more on luxury and leisure products for self-indulgence. Cigars and cigarillos are gaining demand among young professionals and business owners as a symbol of success and means to relax. Companies expect this trend to continue driving market revenues over the forecast period.

PEST Analysis

Political: The Indian government introduced higher taxes on cigarettes and cigars to discourage consumption and improve public health. This impacted the market.

Economic: Rising disposable incomes have led to increased discretionary spending on luxury items like cigars and cigarillos in India. The economy is also growing at a rapid pace.

Social: Cigars and cigarillos are perceived as symbols of success and wealth by some individuals and social groups in India. Their social acceptability has increased consumption in urban social gatherings.

Technological: Companies are using technological innovations like internet, smartphone apps for online sales and product advertisements targeting tech savvy consumers. Advanced humidification techniques are also being used for premium varieties.

The Indian cigar and cigarillos market is concentrated mainly in the metropolitan cities like Delhi, Mumbai, Chennai, Kolkata and Bengaluru where a significant portion of high income individuals and social gatherers reside. These urban regions account for over 60% of the total market value.

The southern Indian state of Karnataka has emerged as the fastest growing regional market for cigars and cigarillos in India. Cities like Bengaluru and Mysuru have experienced rapid economic growth and witnessed rising affluence among the population in recent years. This has boosted the trend of luxury consumption including premium cigars and cigarillos for social and business gatherings, driving higher demand growth than any other Indian state. The market value in Karnataka has increased at a CAGR of over 15% during the past 5 years.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it