India Cigar and Cigarillos Market: Emerging Trends and Growth Opportunities

 

The Indian cigar and cigarillos market is expected to grow at a CAGR of 4.5% during the forecast period 2021-2028. The growth of the market is attributed to the rising disposable income of the Indian population, increasing urbanization, and growing popularity of cigars as a status symbol.

The market is segmented by product type, flavor, category, size, and sales channel. Based on product type, the market is divided into cigars and cigarillos. Cigars are longer and have a wider diameter than cigarillos. Cigarillos are also known as little cigars or cigarillos. Based on flavor, the market is segmented into natural, flavored, and infused. Natural cigars are made with tobacco leaves that have not been flavored or infused with any other ingredients. Flavored cigars are made with tobacco leaves that have been flavored with a variety of ingredients, such as chocolate, vanilla, or fruit. Infused cigars are made with tobacco leaves that have been infused with a liquid, such as rum or whiskey.

Based on category, the market is segmented into premium, super-premium, and regular. Premium cigars are made with high-quality tobacco leaves and are often hand-rolled. Super-premium cigars are made with the finest tobacco leaves and are often made in small batches. Regular cigars are made with lower-quality tobacco leaves and are often machine-rolled.

Based on size, the market is segmented into 4.01-5 inches, 5.01-6 inches, 6.01-7 inches, and 7 inches and above. The 4.01-5 inches segment is the largest segment of the market. This is because these cigars are the most popular among consumers.

Based on sales channel, the market is segmented into online retail, conventional stores, and specialty stores. Online retail is the fastest-growing sales channel of the market. This is because consumers are increasingly buying cigars online.

The major players in the Indian cigar and cigarillos market are Gurkha Cigar Group, Imperial Brands, Joya De Nicaragua, Scandinavian Tobacco Group, Swedish Match AB, Swisher, and AJF Cigars. These players are focusing on expanding their product portfolio, increasing their distribution network, and launching new marketing campaigns to gain a competitive edge in the market.

Here are some of the key trends that are shaping the Indian cigar and cigarillos market:

Rising disposable income of the Indian population

Increasing urbanization

Growing popularity of cigars as a status symbol

Increasing demand for premium and super-premium cigars

Growing popularity of cigarillos

Expansion of the online retail channel

Demand - 

Increasing demand for premium tobacco products: Cigars and cigarillos are considered to be premium tobacco products and are often associated with luxury and status. The rising demand for these products among consumers who are willing to pay a premium for high-quality tobacco products is driving the growth of the market.

Rising consumer living standards: The rising disposable incomes of consumers in developed and developing countries is leading to an increase in the demand for premium tobacco products. This is also driving the growth of the cigar and cigarillos market.

Growing popularity of cigars among young adults: Cigars and cigarillos are increasingly becoming popular among young adults. This is due to the growing awareness of the health risks associated with cigarettes and the perception that cigars are a healthier alternative.

In addition to these factors, the growth of the cigar and cigarillos market is also being supported by the following factors:

Expanding hospitality sector: The expanding hospitality sector is catalyzing the introduction of cigar lounges in various luxury hotels and bars. This is providing a new platform for the sale of cigars and cigarillos.

Emergence of e-commerce platforms: The emergence of e-commerce platforms is providing a new channel for the sale of cigars and cigarillos. This is making these products more accessible to consumers around the world.