The India Cigar and Cigarillos market is estimated to be valued at US$ 2,784.0 Th in 2020 and is expected to exhibit a CAGR of 4.5% over the forecast period 2021-2028, as highlighted in a new report published by Coherent Market Insights.

A) Market Overview:

Cigars and cigarillos are tobacco products that are rolled in a tobacco leaf and are larger in size compared to cigarettes. They are known for their premium quality and distinct flavors, making them popular among consumers who enjoy smoking tobacco leisurely. The Indian cigar and cigarillos market has witnessed significant growth in recent years, driven by an increasing number of individuals who prefer premium cigars as a status symbol and for relaxation purposes.

The Indian cigar and cigarillos market offer a variety of options, including hand-rolled cigars, machine-made cigars, flavored cigars, and more. These products are associated with a rich flavor profile and a unique smoking experience. The demand for cigars and cigarillos has also been fueled by the growing popularity of cigar lounges and clubs, where individuals can socialize and enjoy their favorite tobacco products in a luxurious setting.

B) Market Key Trends:

One key trend observed in the Indian cigar and cigarillos market is the increasing demand for premium cigars. Consumers are showing a growing interest in high-quality, hand-rolled cigars that offer a unique taste and experience. This trend can be attributed to the rising disposable income levels and changing lifestyles of individuals. Premium cigars are often associated with luxury and sophistication, making them a popular choice among affluent consumers.

For example, Gurkha Cigar Group, one of the key players in the Indian cigar and cigarillos market, offers a range of premium cigars that are crafted with rare and exotic tobaccos. These cigars are known for their exquisite flavors, impeccable construction, and beautiful packaging, attracting cigar enthusiasts who appreciate the finer things in life.

C) PEST Analysis:

Political: The political landscape in India plays a significant role in shaping the cigar and cigarillos market. Government regulations and policies regarding tobacco products, including taxes and advertising restrictions, can impact the growth and distribution of cigars and cigarillos.

Economic: The economic conditions in India, such as GDP growth, inflation rates, and consumer spending patterns, influence the purchasing power of consumers and their willingness to spend on premium tobacco products.

Social: The social factors shaping the Indian cigar and cigarillos market include changing lifestyles, cultural preferences, and the perception of cigars as a status symbol. Social acceptance and preferences towards smoking also impact the demand for these products.

Technological: Technological advancements in the manufacturing process of cigars and cigarillos can improve product quality, consistency, and efficiency. Innovations in packaging and storage techniques also play a role in preserving the freshness and flavor of cigars.

D) Key Takeaways:


1: The India Cigar and Cigarillos Market is expected to witness high growth, exhibiting a CAGR of 4.5% over the forecast period. This growth can be attributed to increasing demand for premium cigars among consumers. Premium cigars offer a unique taste and smoking experience, making them popular among individuals who seek luxury and sophistication.

2: In terms of regional analysis, India is expected to be the fastest-growing and dominating region in the cigar and cigarillos market. The country has a large population of cigar enthusiasts who appreciate premium tobacco products. Additionally, India's evolving economic landscape and increasing disposable income levels contribute to the growth of the market.

3: Key players operating in the India Cigar and Cigarillos market include AJF Cigars, Boutique Blends Cigars, Fenn Thompson & Co. Royal Cigar Works, Gurkha Cigar Group, Imperial Brands, Joya De Nicaragua, S.A., Scandinavian Tobacco Group, Swedish Match AB, and Swisher. These companies offer a wide range of premium cigars and cigarillos to cater to the diverse preferences of consumers.

In conclusion, the Indian cigar and cigarillos market is witnessing significant growth due to the increasing demand for premium cigars. Consumers are drawn to the unique flavors and experiences offered by these products, making them a popular choice among individuals who seek luxury and sophistication. As India's economy continues to grow and disposable income levels rise, the market is expected to further expand. Key players in the industry are constantly introducing new innovations and offerings to cater to the diverse preferences of consumers.