According to the latest report released by Research On Global Markets, India is the second largest producer of tobacco and third largest exporter of tobacco in the world. The tobacco industry employs 46 million people in India. With the Tobacco Board of India providing evolving facilities, the market has recorded a total (manufactured and unmanufactured tobacco) export of INR 60.13 Bn in 2016.

The report states that the two forms in which tobacco is harvested in India are cigarette tobacco and non-cigarette tobacco. Manufacture of cigarette tobacco has seen a global decrease, leading to a rise in non-cigarette tobacco. Chewing tobacco has accounted for 38% of the tobacco market in FY2016. The rest of the market is made of cigarette and bidi tobacco. Bidis, snuff and chewing tobacco such as gutka, khaini and zarda accounts for majority of India’s total tobacco production.

Considering the consumption-tax revenue ratio of the overall segment of smoked tobacco, legal cigarettes account for ~10% of consumption and ~86% of tax revenues. This implies that even though smokeless tobacco has the highest rate of consumption, more revenue is earned from legal cigarettes. Tobacco, despite it triggering addiction and intoxication, is consumed significantly by Indians, especially in the form of smokeless tobacco.

Tobacco is an essential part of the socio-cultural environment in India. A relatively higher income growth compensates for the increasing price of cigarettes, leading to greater consumption. Moreover, societal influences such as peer pressure also aids in driving the demand for tobacco products. These are the crucial factors propelling market growth.

Among the major cigarette producers in India, ITC Ltd. currently enjoys the highest market share (~84.27%), based on sale. Rest of the share is distributed among minor companies like Kothari Products Ltd., Godfrey Phillips India Ltd., VST Industries Ltd., and others.

Key highlights of this report:

  • Overview of the tobacco market in India
  • Tobacco Market Size & Growth Forecast (Value-Wise; FY 2016 - FY 2020e) and Current Market Scenario
  • Qualitative analysis of the drivers, trends and challenges affecting the market and its segments
  • Export of Tobacco and Manufactured Tobacco Substitutes {Value-Wise; FY 2013 – FY 2016-2017 (Apr-Dec)} and Import of Tobacco and Manufactured Tobacco Substitutes {Value-Wise; FY 2013 – FY 2016-2017 (Apr-Dec)}
  • Export of Tobacco and Manufactured Tobacco Substitutes – Region-Wise Segmentation (Value-Wise: FY 2015 and FY 2016) and Import of Tobacco and Manufactured Tobacco Substitutes – Region-Wise Segmentation (Value-Wise: FY 2015 and FY 2016)
  • Export of Tobacco and Manufactured Tobacco Substitutes – Product-Wise Segmentation (Value-Wise: FY 2015 and FY 2016) and Import of Tobacco and Manufactured Tobacco Substitutes – Product-Wise Segmentation (Value-Wise: FY 2015 and FY 2016)
  • Product Wise Segmentation (2015-16) & Market Share of Illegal Cigarettes (2014-15)
  • Porter’s Five Force Analysis
  • Geographic Segmentation
  • Competitive landscape

Check out the Research on Global Markets report featured in this article:

Tobacco Market in India 2017
February 2019 | 60-70 Pages | SKU: 201878

This report has been collated and designed with the aim to give businesses an in-depth understanding of the tobacco market in India in order to determine the viability of the market, develop strategies based on the drivers, and to help brands identify competition and respond accordingly.

Name: Ankita Basu
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