The India cigar and cigarillos market is primarily driven by improving economic conditions and rising disposable incomes. Cigars and cigarillos are gradually becoming aspirational items, especially among young working professionals and elite smokers. Premium hand-rolled cigars are gaining traction as a symbol of luxury and affluence. Rising cafes and lounges that offer cigar experiences are further exposing new audiences to these tobacco products.
The Global India cigar and cigarillos Market is estimated to be valued at USD 3.0 Mn in 2024 and USD 4.2 Mn by 2031 is expected to exhibit a CAGR of 4.9% over the forecast period 2024-2031. Key Takeaways Key players operating in the India cigar and cigarillos market are ITC Ltd, Godfrey Phillips, and Ajanta Cigar. Some of the key opportunities in the market include growing experimentation with infused and flavored cigars, burgeoning online retail platforms, and sponsorship of lifestyle events. The introduction of machine-made cigars at lower price points is also expanding the consumer base. Technological advancements such as the development of hybrid tobacco incorporating fillers like cloves are creating new product experiences. Blockchain tracking solutions are being implemented to curb counterfeiting and smuggling. Market Drivers The India Cigar and Cigarillos Market Growth is expected to grow owing to rising disposable income levels across major cities. As affordability increases, more consumers are exhibiting luxury spending behaviors and experimenting with premium smoking alternatives. The urban professional demographic is driving significant demand. Furthermore, the proliferation of high-end restaurants, bars and lounges provide conducive environments for cigar exploration and consumption. Improving organization of lifestyle events centered on cigars, spirits and craft beers is also boosting awareness and trial.
Current challenges in India Cigar And Cigarillos Market The India cigar and cigarillos market faces few key challenges currently. Most of the population in India does not consume tobacco products. The awareness and acceptance of cigar and cigarillos as a luxury product is still limited. The government has imposed high taxes on tobacco products to discourage consumption. Strict regulations and extensive health warnings on packaging further impact the growth potential. High price of quality imported cigar brands also restricts mass adoption in India. Illicit trade of cheap foreign cigars is another concern for the legitimate players in this market. SWOT Analysis Strength: Strong distribution network of major players; Lucrative opportunity considering low existing penetration rates. Weakness: Lack of popularity and social acceptability among most Indians; High dependence on tourism and duty-free sales currently. Opportunity: Growing affluent population and exposure to global luxury brands; Potential to drive trial through premium brand marketing. Threats: Strict regulatory challenges; Continuous tax hikes can stall volume growth. The India Cigar And Cigarillos Market Size and Trends is currently concentrated in metropolitan cities and specific tourist destinations in terms of value sales. Major cities like Mumbai, Delhi, Bengaluru and Chennai account for around 60% of the domestic demand due to higher discretionary spending ability of urban consumers. Tourist hotspots like Goa and Kerala also contribute as cigar shops rely on foreign tourist footfalls. The Western region of India especially states of Maharashtra and Goa is emerging as the fastest growing regional market for cigars and cigarillos. Exposure to global travellers and wealthy non-resident Indians are driving the higher acceptance levels in cities like Mumbai and Pune. Duty-free shops at international airports in this region further boost volumes from inbound tourism.
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The global Cigar And Cigarillos Market is projected to reach USD 21.02 billion by 2025, according to a new report by Million Insights.
Cigars are considered to have a better reputation than cigarettes and available in different flavors.
Request a Sample PDF Copy of This Report @ https://www.millioninsights.com/industry-reports/global-cigar-cigarillos-market/request-sample Market Synopsis of Cigar & Cigarillos Market: The mass segment held the largest market share owing to its rising popularity among younger generations.
Additionally, a rise in the number of female consumers in developed countries is supplementing the demand for mass products.
However, the premium segment is expected to register the highest CAGR during forecast years.
The growing popularity of hand-rolled premium cigar and the introduction of innovative flavors are driving the demand for this segment.
