India Cigar And Cigarillos Market

India Cigar and Cigarillos Market Soars on Surging Youth Consumption


The India cigar and cigarillos market comprises a wide range of specialty tobacco products used for burning at one end and are characterized by their appearance, taste and aroma. Cigars and cigarillos contain processed tobacco wrapped inside a tobacco or tobacco-containing leaf. They offer an easy and subtle way of enjoying tobacco and is preferred in social and celebratory settings.

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 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. The increasing youth population and rising social acceptance of cigar consumption has boosted the demand for premium cigars in the country. Furthermore, the market players are expanding their footprint in tier-2 and tier-3 cities to tap the untapped rural market.

The growing trend of premiumization and new product launches catering to evolving flavors and formats has propelled the demand for cigars in India. Furthermore, increasing socializing opportunities and growing influence of western culture have driven the consumption of specialty cigars such as infused and flavored cigars especially among the youth. The market players are also focusing on innovations and introducing organic, natural and low nicotine cigars to target health-conscious young adults.

Riding on the success in domestic markets, leading cigar companies are expanding globally by setting up manufacturing units, enhancing distribution networks and promoting Indian cigar brands overseas especially in Asia Pacific and Middle Eastern countries. Players are also investing in promoting Indian cigar culture and heritage through global events and cultural exchanges to strengthen export base.

Market Key Trends

One of the major trends witnessed in the India Cigar And Cigarillos Market Demand is the surge in young adult consumption of specialty infused and flavored cigars. The increasing youth population inclined towards experiencing novelty and unique flavors has encouraged cigar companies to incorporate indulgent infusion and natural flavors in their products. This has boosted the young consumer base of cigars. Flavors like chocolate, cinnamon, coffee, rum and bourbon are immensely popular among youth cigar smokers in India.

Porter’s Analysis

Threat of new entrants: High capital requirements and government regulations make the entry of new players difficult in this market.

Bargaining power of buyers: Smokers have low bargaining power in this market due to lack of substitutes and addiction levels.

Bargaining power of suppliers: A few large international tobacco companies dominate the supply in this market increasing their bargaining power.

Threat of new substitutes: Alternatives like e-cigarettes pose a limited threat due to differing experiences provided.

Competitive rivalry: Fierce competition exists between existing players to increase their market share.

Geographical Regions

Value concentrated in geographical regions

More than half the market value in the India cigar and cigarillos market is concentrated in urban areas of Southern India like Karnataka, Tamil Nadu and Kerala where smoking rates are relatively higher.

Fastest growing region

Northern India is expected to be the fastest growing region for the India cigar and cigarillos market during the forecast period. States like Haryana, Punjab and Delhi NCR are likely to see rising disposable incomes and experimentation with cigars, driving double digit growth.

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