Tobacco in 2023: The big picture
After seeing declines during the first year of the pandemic in 2020, cigarettes experienced volume and current value growth in India in 2021 and 2022, which continued for a third year in 2023. This was due to increased office occupancy, moderate price hikes, and a focus on premiumisation.
2023 key trends
Due to macroeconomic factors, India mainly remains a single-stick consumption market when it comes to cigarettes. As a developing country, India exhibited modest per capita consumer expenditure in 2023.
Competitive landscape
From 2010, the Indian government implemented a ban on Foreign Direct Investment (FDI) in the tobacco industry to regulate consumption and curb smoking. As a result, cigarettes in the country is primarily dominated by local companies.
Retailing developments
In 2023, small local grocers remained the dominant distribution channel for sales of cigarettes. Even during the pandemic in 2020, despite significant channel shifts in various industries, small local grocers did not lose share to modern retail channels in cigarettes.
What next for tobacco?
Inflation and taxation are expected to lead to a slowdown in growth for cigarettes in India during the forecast period, with growth also stabilising after the disruption to sales seen during and after the pandemic. According to Euromonitor’s Economies and Consumers data, India’s inflation rate is projected to decelerate to 4.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in India with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
If you're in the Tobacco industry in India, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Tobacco in India report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Tobacco in India?
- Which are the leading brands in Tobacco in India?
- How are products distributed in Tobacco in India?
- Which category is the most heavily taxed in India?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in India?
- How has COVID-19 impacted demand?
- How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
- Where is future growth expected to be most dynamic?
Tobacco in India
Tobacco in 2023: The big picture
2023 key trends
Competitive landscape
Retailing developments
What next for tobacco?
Legislation
Legislative overview
Minimum legal smoking age
Smoking prevalence
Health warnings
Plain packaging
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Flavoured tobacco product ban
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in India
KEY DATA FINDINGS
Increased office occupancy, moderate price hikes, and focus on premiumisation aids the growth of cigarettes in India
ITC Ltd leads the oligopolistic cigarettes category in the country, on the back of a robust portfolio and vast distribution
Marlboro brand grows significantly on the back of the use of Flue-Cured Virginia (FCV) tobacco, affordability, and availability
Inflation for Flue-Cured Virginia (FCV) tobacco could impede the momentum of the category
India likely to remain a single-stick consumption market, owing to macroeconomic factors
High illicit consumption continues to pose a threat to legal sales
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in India
KEY DATA FINDINGS
Ambience and distribution help to improve penetration for cigars and cigarillos
Manufacturers feel that uniform taxation is the biggest impediment to sales of cigars and cigarillos
Brands target premium consumers and take on perception biases
Hookah establishments have been reeling under bans in different states across India since the pandemic
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in India
KEY DATA FINDINGS
Unorganised market and unethical practices drive demand for smokeless tobacco in India
The Indian government has implemented a ban on e-vapour products to prevent the category from becoming mainstream
The ban on Electronic Nicotine Delivery Systems (ENDS) spells the end for heated tobacco products in India
Smokeless tobacco escapes the impact of regulation and legislation in some respects
Illicit e-vapour products continue to be an issue for the government
The following categories and subcategories are included:
Tobacco
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- Fine Cut Cigarettes
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- Cigarettes (Illicit+Legal)
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- Cigars
- Cigarillos
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- Pipe Tobacco
- Fine Cut Tobacco
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- Chewing Tobacco
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- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
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- Closed System Single Use
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- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
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- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
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- Tobacco Heating Devices
- Heated Tobacco
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- Nicotine Pouches
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- Closed System Single Use (Illicit+Legal)
- Closed System Cartridges (Illicit+Legal)
- E-Liquids (Illicit+Legal)
Tobacco
Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Tobacco research and analysis database.
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