June 25, 2024

The Growing Popularity Of Premium Tobacco Products Propels Development In The India Cigar And Cigarillos Market India Cigar And Cigarillos Market Driven By Rising Disposable Incomes

Cigar and cigarillos are increasingly being perceived as premium tobacco products with their hand-rolled craftsmanship and distinctive flavours. The products are gaining traction among young urban consumers as a symbol of leisure and luxury lifestyle. Various flavours such as aromatic, fruity and woody blends are being introduced to appeal to newer customer segments. Meanwhile, the growing popularity of flavoured cigarillos especially among young female consumers is encouraging product innovation in the market.

The global 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 2024 To 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the key trends spurring growth in the India cigar and cigarillos market is the rising disposable incomes of India’s burgeoning middle class. As economic prosperity increases, consumers are allocating greater budgets towards premium indulgences and experiences. This is encouraging the uptake of hand-rolled cigars and cigarillos as an emblem of luxury, leisure and affluence. Another notable trend is the advent of flavoured options that are helping recruit new users, especially younger consumers who find interesting infused varieties more appealing compared to traditional cigar profiles. Brands are extensively marketing these products through social media platforms that are highly influential among the target demographics. The social acceptability of cigar usage especially in urban social circles is also contributing to increased trial and habitual usage of cigars and cigarillos.


Porter’s Analysis

Threat of new entrants: Entry barriers for new companies are moderate as the industry requires huge investment for production facilities and distribution networks. However new companies can enter the market by partnering with existing small manufacturers.

Bargaining power of buyers: Buyers have moderate bargaining power as there are many established cigar and cigarillos manufacturers in the market. However brand loyalty and product differentiation provides some pricing power to companies.

Bargaining power of suppliers: Tobacco farmers and other key input suppliers have moderate-to-high bargaining power due to limited availability of quality tobacco. This impacts companies procurement cost.

Threat of new substitutes: Threat from substitutes is low as cigar/cigarillos have established market and are not easily substitutable. Also regulations curb use of alternatives like e-cigarettes.

Competitive rivalry: Market is dominated by few large multinational companies. However there is competition from local and regional players offering low cost products.

Key Takeaways

The Global India Cigar And Cigarillos Market Demand is expected to witness high growth driven by rising disposable incomes, influence of western culture and increasing social acceptability of smoking.

Regional analysis:


Western and Southern regions dominate the market due to higher consumption in states like Maharashtra and Gujarat. However North India is witnessing faster growth led by Delhi NCR due to rapid urbanization and changing consumer trends.

Key players:


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 and Signify Holding. Major players are focusing on expanding retail networks and leveraging digital platforms to target younger consumers.

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