Indian Cigarette Market Analysis



India holds a small share in the global Cigarette Market (~ 1.5%). Despite stringent policies by the Indian government to curb down on cigarette usage, there is no slowdown in the industry in the times ahead. Hectic lifestyle, peer pressure, and changing preferences are fueling the growth of the tobacco industry in the country.

The global cigarette retail market is nearly worth around USD 727 Billion, as per the estimates by The India Watch. It is estimated that each year slightly over 1 billion adults smoke resulting in somewhere around 5.4 trillion butts of cigarettes consumed annually. Research suggests that more than 80% of the market is dominated by six major brands €“ China Tobacco, Altria, Japan Tobacco, British American Tobacco, Reynolds American, Imperial Tobacco & Phillip Morris. Almost half of the market is ruled by China Tobacco. Interestingly, only 1% of China Tobacco, which is a state-run company, is exported. The rest is consumed in the domestic market.

Indian Cigarette Market Analysis

With 81 billion butts consumed yearly, India still has a relatively small share in the global market (1.5%). The retail market size of cigarettes in India is around USD 3.2 billion (0.45% of the global retail market), as per the estimates by The India Watch. It is relatively much smaller when compared to China, wherein nearly 2.6 trillion butts are consumed yearly.

However, India alongside China constitutes a major portion of the growth in cigarette consumption worldwide. Smoking is increasingly becoming popular amongst Indian youth, including both men and women.

Despite stringent policies by the Indian government to curb down on cigarette usage, there is no slowdown in the industry in the times ahead. Hectic lifestyle, peer pressure, and changing preferences are fueling the growth of the tobacco industry in the country.

Like global trends, the Indian cigarette industry is also a consolidated market. Around 78% of the market is dominated by ITC. Other major players involved, Godfrey Philip & VST.

The Rise of Menthol

Along with regular cigarettes, there are numerous other subcategories such as mild cigarettes, light cigarettes, and menthols, which are gaining popularity amongst Indian consumers. Menthol based cigarettes constitute near around 16% of the overall Indian market, with an estimated retail market size of around USD 510 million.

Numerous menthol based brands such as Marlboro Black Menthol, Marlboro Slim Ice Bust, Marlboro Double Bust, Classic Ice Bust, etc. could be widely seen in tobacco shops (including pan shops), grocery shops, supermarkets, etc. These brands are becoming hugely popular among youths, women, and first-time smokers. It is also believed that such cigarettes are more addictive; thereby further adding to their rising growth.



About The India Watch

The India Watch is an India focused market research & business intelligence platform. Our cutting edge research can offer domestic and international retail companies actionable insights to enter, grow, & expand in India. Our research includes but is not limited to investment strategy analysis, consumer behavior, market segmentation, distribution network, competitive landscape, regulatory framework, etc.

Also, we will like to put a disclaimer that the Cigarette study is just for reference.  We do not engage in harmful products such as Cigarettes. Consumption of tobacco is harmful to health and should be avoided.

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