Tobacco Market in India (2018-2023)

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Market insights:
India is the second largest producer and third largest exporter of tobacco in the world. The tobacco industry provides employment to ~46 Mn people. With the evolving facilities provided by the Tobacco Board of India, the market has recorded a total (manufactured and unmanufactured tobacco) export of INR 60.84 Bn in FY 2018.

Segment-wise market insights:
In India, tobacco is harvested mainly in two forms—cigarette tobacco and non-cigarette tobacco. During 2017-2018, non-cigarette tobacco alone had a ~69% market share. Manufacture of cigarette tobacco has significantly reduced, globally, leading to an increase in the sale of non-cigarette tobacco.
Based on consumption, khaini constituted ~11%, and beedi and cigarette had a market share of ~8%. Usage of smoking mediums like hookah, hookli, chhutta, dhumti and chillum, along with edible tobacco like mawa, snuff, gutka, and pan masala have led to the growth of this market.
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.
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.

Market drivers:

• Over the years, tobacco has become an essential part of the Indian socio-cultural environment, especially in the eastern, northern, and north-eastern parts of the country. 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.
• With the assistance of the Tobacco Board, Indian tobacco producers are using technologically advanced threshing plants and re-drying factories. These facilities are used for increasing the yield of Flue-Cured Virginia (FCV) tobacco, which can then be exported to different countries, across the world. Hence, improved infrastructure drives growth for this market.

Market challenges:
• Cigarette taxes (64% excise duty, 28% GST, and 5% cess) in India are among the highest in the world. Therefore, high tax rates make cigarettes unaffordable to a large section of consumers. As a result, they shift towards the consumption of beedi and other forms of smokeless tobacco. Hence, the overall tobacco market experiences slow growth.
• The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act of 2003 (COTPA, 2003) imposes a blanket ban on tobacco advertising. This prevents companies from directly advertising their products, because of which they resort to surrogate advertising. Hence, it becomes difficult for manufacturers to promote their brands, limiting the growth of the domestic market.
Companies covered:
1. Ashok and Company Pan Bahar Ltd.
2. Godfrey Phillips India Ltd.
3. Golden Tobacco Company Ltd.
4. ITC Ltd.
5. Kothari Products Ltd.
6. M.R. Tobacco Pvt. Ltd.
7. National Tobacco Company of India Ltd.
8. Pataka Industries Pvt. Ltd.
9. Sinnar Bidi Udyog Ltd.
10. VST Industries Ltd.

The post Tobacco Market in India (2018-2023) first appeared on CRI Report.

Global Smokeless Tobacco Market Research Report – Forecast to 2023

admin — Fri, 07 Dec 2018 02:40:24 +0000

The numerous health issues caused by the intake of nicotine has led governments across the world to impose restrictions on cigarettes, which has resulted in an increased demand for alternatives. Low cost and easy availability of smokeless tobacco products are driving sales. Additionally, claims of being less harmful than cigarettes by major brands there is driving the growth of the global smokeless tobacco market.
The increasing number of campaigns and advertisements by market players has created an awareness about the harmful effects of cigarettes. In the US and other countries, smokeless tobacco products are sold with a warning label to drive home the health risks. Some companies, including Swedish Match, have suggested the warning to be altered and have proposed a new warning statement, stating ‘No tobacco product is safe, but this product presents substantially lower risks to health than cigarettes.’ Such campaigns are driving market growth across the globe.
Regional Analysis
The global smokeless tobacco market has been segmented, by region, into North America, Europe, Asia-Pacific, and the rest of the world. Asia-Pacific is expected to maintain its dominance on the market during the forecast period. The regional market is projected to reach USD 12,276.3 million by 2023 at a CAGR of 4.55%. India accounted for the largest market share of 71.68% in 2017 and is projected to remain the largest country-level market during the review period. North America is projected to be the second-largest market with a share of 30.24% in 2017; the regional market is expected to register a CAGR of 4.46% during the forecast period of 2018 to 2023. The market in the rest of the world is projected to register a low growth rate during the forecast period.
Segmentation
The global smokeless tobacco market has been segmented based on type, form, route, and region.
The global smokeless tobacco market has been segmented, on the basis of type, into chewing tobacco, dipping tobacco, and dissolvable tobacco. The dipping tobacco segment accounted for the largest market in 2017 share and is expected maintain its dominance during the forecast period.
On the basis of form, the global smokeless tobacco market has been classified as moist and dry. The dry segment is expected to be the larger and faster-growing market during the forecast period owing to easy storage and longer shelf life as compared to moist tobacco.
The global smokeless tobacco market has been categorized, on the basis of route, as oral and nasal. The oral segment is projected to be the largest and register the highest CAGR during the assessment period due to the easy intake using this route.
Key Players
The leading market players in the global smokeless tobacco market are Dharampal Satyapal Limited (India), MacBaren Tobacco Company A/S (Denmark), Swisher International Group, Inc. (US), Japan Tobacco, Inc. (Japan), Imperial Brands PLC (UK), British American Tobacco PLC (UK), Altria Group, Inc (US), and Swedish Match AB. (Sweden).
Target Audience:
• Tobacco manufacturers
• Raw material suppliers
• End users
• Retailers and wholesalers
• E-commerce companies
• Traders, importers, and exporters

Key Findings:
• The dipping tobacco type segment is expected to account for the largest market share and is expected to register the highest CAGR of 4.52% during the forecast period
• The dry form segment is expected to register a CAGR of 4.45% during the forecast period to reach USD 12,799.4 million by the end of 2023. The moist segment is projected to exhibit a CAGR of 4.36% during the forecast period.

The report also offers a country-level analysis for the following regions:
• North America
o US
o Canada
o Mexico
• Europe
o Sweden
o Norway
o Denmark
o Rest of Europe
• Asia-Pacific
o India
o Pakistan
o Bangladesh
o Rest of Asia-Pacific
• Rest of the World
o Africa
o Middle East
o Latin America
o Others

The post Global Smokeless Tobacco Market Research Report – Forecast to 2023 first appeared on CRI Report.

Tobacco – CRI Report

Tobacco Market in India (2018-2023)

Global Smokeless Tobacco Market Research Report – Forecast to 2023