India Tobacco Market Report

India Tobacco Market:

The India tobacco market size reached 804.8 Thousand Tons in 2024. Looking forward, IMARC Group expects the market to reach 987.5 Thousand Tons by 2033, exhibiting a growth rate (CAGR) of 2.1% during 2025-2033. The rising cultural acceptance of tobacco consumption in India, the increasing number of tobacco users, and inflating consumer disposable incomes represent some of the key factors driving the market.

India Tobacco Market Analysis:

• Major Market Drivers: The expanding population across the country represents one of the primary factors driving the growth of the tobacco market in India. Moreover, the presence of a significant rural population, where tobacco farming and consumption are prevalent, has augmented the India tobacco market demand.
• Key Market Trends: The increasing affordability and accessibility of tobacco products due to inflating disposable income among the middle-class population in India is positively influencing the market growth. In line with this, the easy availability of tobacco products, ranging from cigarettes to smokeless tobacco ensuring convenient access for consumers across various distribution channels has catalyzed the India tobacco market growth.
• Competitive Landscape: The India tobacco market analysis report has also provided a comprehensive analysis of the competitive landscape in the market. Also, detailed profiles of all major companies have been provided.
• Geographical Trends: North India exhibits a clear dominance in the market. In many parts of the region, tobacco consumption is deeply ingrained in cultural and social practices. Products like bidi, gutka, and khaini are often used in traditional ceremonies and social gatherings, further driving the market's demand. 
• Challenges and Opportunities: Stringent regulations on the consumption of tobacco, especially in public areas, and rising awareness towards associated health risk are hampering the market's growth. However, there is growing interest in alternative products like smokeless tobacco, e-cigarettes, and heated tobacco products, which could appeal to different consumer segments.

India Tobacco Market Trends:

Growing Population

India's large and growing population contributes significantly to the expansion of the tobacco market. For instance, according to Statista, India's annual population growth rate grew by 0.1 percentage points (+14.71%) in 2023. India's predicted total population in 2023 was 1.43 billion. With over a billion people, even a small percentage of smokers translates into a substantial market size. These factors are further positively influencing the India tobacco market forecast.

Rising Consumption of Tobacco Products

As urbanization increases, lifestyle changes often include higher consumption of tobacco products. For instance, according to an article published by Global Action to End Smoking, in 2022, an estimated 253 million individuals (200 million men and 53 million women) aged 15 and older used tobacco products in India. In terms of tobacco consumption, the country ranks second in the world and first in the WHO South-East Asia Region. These factors are further contributing to the India tobacco market share.

Increasing Cigarettes Consumption

The rising consumption of cigarettes has been a significant factor driving growth in the Indian tobacco market. For instance, according to IMARC, the India cigarette market size reached US$ 24.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 60.4 Billion by 2032, exhibiting a growth rate (CAGR) of 10.4% during 2024-2032. Tobacco companies have developed extensive distribution networks that ensure cigarettes are widely available, often in convenient and easily accessible locations, which supports continued consumption. These factors are augmenting the market growth.

India Tobacco Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the India tobacco market report, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type.

Breakup by Type:

• Cigarettes
• Roll Your Own
• Cigars
• Cigarillos
• Smokeless Tobacco
• Others
   

Cigarettes represented the largest segment

The report has provided a detailed breakup and analysis of the market based on the type. This includes cigarettes, roll your own, cigars, cigarillos, smokeless tobacco, and others. According to the report, cigarettes represented the largest segment.

According to the India tobacco market outlook, cigarettes have a large and diverse consumer base, ranging from daily smokers to occasional users. This widespread appeal contributes to their significant market share. Moreover, increased disposable income among certain segments of the population can lead to higher consumption of tobacco products. Apart from this, numerous tobacco companies often have strong marketing strategies and extensive distribution networks, making cigarettes easily accessible.

Breakup by Region:

• South India
• North India
• West & Central India
• East India
   

North India acquired the largest market share

The report has also provided a comprehensive analysis of all the major regional markets, which include South India, North India, West & Central India, and East India. According to the India tobacco market report, North India was the largest market.

Some of the factors driving the North India tobacco market included the introduction of premium tobacco products, surging investments in research and development (R&D) activities by key players, the rising popularity of e-cigarettes among young consumers, etc. In many parts of North India, tobacco consumption, including smoking and chewing, is embedded in cultural practices and social rituals. This can contribute to sustained demand. Moreover, in North India, tobacco use is integrated into social and cultural practices. Products like beedis, gutkha, and khaini are popular. These items are often consumed in social settings and have deep roots in regional traditions.

Competitive Landscape:

The India tobacco market research report has also provided a comprehensive analysis of the competitive landscape in the India tobacco market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.

India Tobacco Market News:

• July 2024: Government allowed the sale of excess FCV tobacco produced by registered farmers on auction platforms in Andhra Pradesh for the crop season 2023-2024.
• July 2024: Finance Minister of India promised no changes to tobacco taxation in the budget statement, providing relief to businesses such as ITC, which rely largely on cigarettes for revenue.
• September 2023: Council of Scientific & Industrial Research (CSIR) developed a tobacco variety, reducing nicotine content by 40-50% to mitigate its health impact.

India Tobacco Market Report Scope:

Key Questions Answered in This Report:

• How has the India tobacco market performed so far and how will it perform in the coming years?
• What has been the impact of COVID-19 on the India tobacco market?
• What is the breakup of the India tobacco market on the basis of the type?
• What are the various stages in the value chain of the India tobacco market?
• What are the key driving factors and challenges in the India tobacco market?
• What is the structure of the India tobacco market and who are the key players?
• What is the degree of competition in the India tobacco market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the India tobacco market from 2019-2033.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the India tobacco market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the India tobacco industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.