Cigar and cigarillos are one of the premium tobacco products containing tobacco rolled in leaf tobacco or contains an inner filler of chopped, reconstituted tobacco wrapped in leaf tobacco. Cigars and cigarillos are traditionally associated with relaxation, social status and celebrations. The growing trend of luxurious lifestyle and rapid urbanization, especially in metro cities are increasing the demand for premium products like cigars and cigarillos in India.
The global India cigar and cigarillos market is estimated to be valued at US$ 3177.01 in 2023 and is expected to exhibit a CAGR of 4.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity: Rapid Urbanization
Rapid urbanization in India has been providing lucrative growth opportunities for the cigar and cigarillos market. According to the World Bank, urbanization in India has been rising at a pace of 2% annually and is expected to reach 40% by 2030. With the growing middle-class population and disposable incomes in metro cities, the younger urban population is getting inclined towards adopting luxurious lifestyles. This rapid urbanization has spurred the demand for premium products like premium cigarettes, cigars, and cigarillos, especially among young professionals. The growing trend of social gatherings, on-the-go snacking, and celebrations provide an impetus to the demand for cigars and cigarillos in India's urban markets. The rising affluence in cities and western influence are making cigars and cigarillos more aspirational, thereby driving the market growth.
Porter's Analysis
Threat of new entrants: Low bargaining power of buyers due to established distribution channels and brand loyalty of consumers.
Bargaining power of suppliers: Low due to the availability of substitute raw materials and established supply relationships of key players.
Threat of new substitutes: High threat from alternative nicotine products like e-cigarettes and vapour products.
Competitive rivalry: High among existing players to gain market share through product innovation, marketing campaigns and expansion of distribution networks.
SWOT Analysis
Strengths: Established brands, large production capacities of key players, and wide distribution network across the country.
Weaknesses: Rising health awareness, regulatory restrictions on advertising and promotion, and increasing preference for alternative nicotine products especially among youth.
Opportunities: Untapped rural market, product line extensions, and growing popularity of premium and flavored cigars & cigarillos.
Threats: Stringent regulations, high taxation, ban on public usage and rising anti-smoking sentiment.
Key Takeaways
The India cigar and cigarillos market is expected to grow at a CAGR of 4.5% during the forecast period owing to rising disposable incomes, increasing socialization at bars & pubs, and evolving consumer preferences.
The southern region currently dominates the market due to higher consumption in states like Karnataka, Kerala and Tamil Nadu. Key metro cities like Bengaluru, Chennai and Kochi contribute significantly to the overall demand in the region.
The adoption of alternative nicotine products is on the rise especially among young adults. Companies are launching novel product varieties targeting new consumers. For instance, Swisher launched Charcoal Filter Cigarillos infused with different flavors in 2020. AJF Cigars also offers flavored hand-rolled premium cigars in exotic flavors like vanilla, coffee and chocolate to appeal new-age consumers.
Key players operating in the India cigar and cigarillos market are 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.
Get More Insights On This Topic: https://www.ukwebwire.com/india-cigar-and-cigarillos-market-analysis/
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.
