by 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 caters to the growing demand for premium tobacco products in the country. Cigars and cigarillos are known for their rich flavor profiles and are often associated with luxury and indulgence. These products are favored by individuals who appreciate the art of smoking and seek a sophisticated and exclusive experience. The market offers a wide range of cigars and cigarillos, including hand-rolled and machine-made varieties, with different flavors and sizes to suit individual preferences.
B) Market Dynamics:
1. Driver: Increasing Disposable Income
With a growing economy and rising disposable income, consumers in India are increasingly willing to spend on premium products, including cigars and cigarillos. The rising affluence of the middle class has led to a higher demand for luxury goods, and cigars are no exception. As individuals have more disposable income, they are able to indulge in the cigar culture and appreciate the finer things in life.
2. Opportunity: Expanding Customer Base
The customer base for cigars and cigarillos is expanding in India. Traditionally, cigar smoking was seen as a masculine activity, but there is a growing trend of women indulging in cigar smoking as well. The changing social dynamics and the breaking of gender stereotypes have opened up a new market segment for cigars and cigarillos. Additionally, the younger generation is showing an interest in the cigar culture, further expanding the customer base.
C) Segment Analysis:
The hand-rolled segment dominates the India Cigar and Cigarillos market. Hand-rolled cigars are known for their premium quality and craftsmanship. These cigars are carefully rolled by skilled artisans, ensuring a superior smoking experience. The hand-rolled segment commands a larger market share due to its exclusivity and the perception of higher quality among consumers.
D) PEST Analysis:
Political: The Indian government has regulations in place governing the sale and distribution of tobacco products, including cigars and cigarillos. These regulations include health warnings, advertising restrictions, and age restrictions for purchasing tobacco products.
Economic: India’s growing economy and increasing disposable income contribute to the growth of the cigar and cigarillos market. As individuals have more purchasing power, they are willing to spend on luxury goods and experiences, including premium cigars.
Social: The social perception of cigars and cigarillos is changing in India. Previously associated with a niche and elite group, cigar smoking is becoming more socially acceptable and accessible to a broader audience. The changing social dynamics and breaking of stereotypes have contributed to the growth of the market.
Technological: The technology used in the manufacturing process of cigars and cigarillos has evolved over the years, allowing for improved quality and consistency. Advanced machinery and techniques enable manufacturers to produce cigars with precise flavors and aromas, enhancing the smoking experience.
E) Key Takeaways:
– The India Cigar and Cigarillos Market is expected to witness high growth, exhibiting a CAGR of 4.5% over the forecast period, due to increasing disposable income and expanding customer base.
– The hand-rolled segment dominates the market, offering premium quality and craftsmanship.
– Regionally, India is the fastest-growing and dominating region in the market, driven by the rising affluence of the middle class and changing social dynamics.
– 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.
In conclusion, the India Cigar and Cigarillos market is experiencing significant growth due to increasing disposable income and a growing customer base. The market offers a variety of premium tobacco products, catering to individuals who appreciate the art of smoking and seek a luxurious experience. With favorable market dynamics and evolving social perceptions, the market is poised for continued growth in the coming years.
