India Cigars and Cigarillos Market Research Report, 2028

Tobacco consumption in India has been a longstanding and complex issue with far-reaching implications for public health, economics, and social well-being. India is one of the largest consumers of tobacco in the world, with millions of its citizens using tobacco products regularly. The primary sources of tobacco consumption in India are in the form of cigarettes, cigars, cigarillos, bidis (hand-rolled, unfiltered cigarettes), chewing tobacco, and gutka (a chewable tobacco product mixed with areca nut and slaked lime). This widespread usage has serious health consequences, as tobacco is a leading cause of preventable diseases, including cancer, heart diseases, respiratory ailments, and oral health issues. One of the major problems related to tobacco consumption in India is its impact on youth. The easy accessibility and affordability of tobacco products, especially in rural areas, make it tempting for young people to start using tobacco at an early age. This not only endangers their health but also perpetuates the cycle of addiction, causing long-term harm to individuals and society as a whole. India’s cigar market is growing rapidly, with a surge in demand for premium cigars among cigar aficionados. With this rise in demand, there has been a significant increase in the availability of premium cigar brands in India. From classic favorites to hidden gems, there is a vast array of premium cigars to choose from in India. Cigar enthusiasts in India, while being a relatively small community, have played a crucial role in promoting and appreciating the art of cigar smoking. They are often well-informed about various cigar brands, origins, and the complexities of cigar flavor profiles. The market for premium cigars, often imported from countries such as Cuba, the Dominican Republic, Nicaragua, and Honduras, has been growing steadily, as more Indians explore the world of fine tobacco. According to the research report "India Cigars and Cigarillos Market Overview, 2028," published by Actual Research, the market is anticipated to grow with more than 9% CAGR from 2023-2028. In recent years, the market for cigars and cigarillos in India has shown notable growth and evolving dynamics. This growth can be attributed to several factors, including changing consumer preferences, increasing disposable income, a growing culture of leisure and luxury, and the expanding influence of globalization on India's tobacco industry. Cigars and cigarillos, once considered niche and reserved for the elite, are gradually gaining popularity among a wider demographic, including urban professionals and young adults. The market has responded to this shift by offering a more diverse range of products, catering to different tastes and preferences. Furthermore, the growing number of upscale lounges, bars, and clubs that offer cigar-related experiences has also contributed to the rise in popularity. International cigar brands are establishing a presence in India, and local manufacturing is increasing, providing a wider selection to consumers. While challenges such as high taxes and stringent government regulations persist, the growth of the cigar and cigarillo market in India appears to be a reflection of the changing lifestyles and tastes of the country's population, with the industry poised to continue expanding in the coming years as more Indians explore the world of premium cigars and cigarillos.

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The tobacco market is segmented into product categories, with the majority of sales going to cigars, cigarillos, and little cigars. In these categories, cigars remain at the top, indicating the enduring popularity of this classic tobacco product. Cigars continue to captivate a diverse variety of consumers despite having a lengthy and distinguished history spanning decades. They are alluring for more reasons than just the chance to smoke quality tobacco; they offer a cultural and even ritualistic experience. Wearing them is a great way to celebrate special occasions or just to unwind because they are often viewed as a mark of sophistication, relaxation, and even celebration. Cigarillos and Little Cigars have also managed to capture a sizeable portion of the market, even though cigars unquestionably dominate it. For example, cigarillos serve a certain market segment that prefers a lighter flavor or a faster smoke. They are becoming popular among customers seeking a more delightful, yet less time-consuming, smoking experience. They are frequently offered in a range of sweet or flavored alternatives. Conversely, Little Cigars has made a name for itself by offering a portable and practical substitute for people who are always on the go. When it comes to cigar and cigarillo usage, flavor type is a key differentiator. This market can be broadly divided into two categories: tobacco (no taste) and flavored. Surprisingly, despite the market's abundance of enticing taste options, the Tobacco (No Taste) category is currently in charge. The long-standing cultural significance and rich history of cigars and cigarillos often fuel this need for traditional, flavorless tobacco products. Customers searching for a more interesting and varied smoking experience have been more and more interested in flavor-infused cigarillos. A new wave of cigar lovers has been drawn in by the tastes that span from exotic and fiery to fruity and sweet. Consequently, the market is anticipated to witness a notable surge in the demand for flavored cigar and cigarillo products, representing an exciting evolution within the industry. In addition, the cost of cigars and cigarillo products falls into two primary categories: mass-priced and premium-priced. This makes pricing an important factor in market segmentation. There's a tendency that's worth mentioning that points to a shift in consumer preference toward higher-end products. In the upcoming years, there is expected to be significant increase in the premium cigar and cigarillo sector. Numerous factors combine to cause this transition. Customers with discernment are coming to value premium-priced products' quality, craftsmanship, and distinctive features more and more. Superior tobacco blends, careful hand-rolling, and prolonged maturing are common features of these products, which make smoking them more upscale and decadent. Additionally, the premium segment is seen as a status symbol and a symbol of luxury, attracting those who are willing to invest in a higher-quality smoking experience. Furthermore, evolving consumer preferences, coupled with a willingness to pay a premium for exceptional quality, are propelling the growth of premium cigar and cigarillo options. By Distributional Channel, the market is segmented into Specialty Store, Hypermarket/supermarket, Convenience Stores, Online, and Others. The prevalence of cigars at specialty shops in India, where they account for the highest share of the market there, ahead of supermarkets, hypermarkets, and internet sales. Specialty shops are renowned for their knowledge and wide variety of cigars. They frequently carry a large selection of high-end and specialized products that appeal to experts and enthusiasts. Specialty cigar shops offer a distinctive shopping experience, with trained employees on hand to provide advice and recommendations, boosting the total satisfaction with the product. Premium cigars, which are often sought by cigar aficionados, are more commonly found in specialty stores due to their commitment to quality and exclusivity. India has a strong cigar culture with a significant number of cigar clubs and events. Specialty stores often serve as hubs for these activities and play a central role in promoting cigar culture. Specialty stores are often the first to receive limited edition cigar releases, making them appealing to collectors and enthusiasts. Comparing specialized stores to other retail channels, customers are more confident in the authenticity and quality of the cigars they buy. Purchasing cigars is an experience for a lot of customers rather than merely a transaction. Other retail formats might not have the same atmosphere or social components as specialty stores. The sales of these products have also been significantly impacted by the online distribution channel, and as a result, it is predicted that this market will dominate in the upcoming year.

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Kripa Shah

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Considered in this report: •Geography: India •Historic year: 2017 •Base year: 2022 •Estimated year: 2023 •Forecast year: 2028 Aspects covered in this report: •India Cigars and Cigarillos market with its value and forecast along with its segments •Various drivers and challenges •On-going trends and developments •Top profiled companies •Strategic recommendation By Type: •Cigars •Cigarillos •Little Cigars

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By Flavor: •Tobacco/ No Flavor •Flavored By Price Range: •Mass •Premium By Distribution Channel: •Speciality Store •Hypermarket/supermarket •Convenience Stores •Online •Others The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Cigars and Cigarillos industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.