India Tobacco Sector Outlook – Brand extensions of tobacco products stimulates the growth of the industry

Netscribes, Inc. launches a report on the Tobacco Market in India 2017 covering a market with strong growth potential. It is a part of Netscribes’ Consumer Goods Industry Series.
( | Press Release | 2017-10-24 21:23:20 )
Mumbai, India – October 24, 2017 – Global market intelligence firm, Netscribes, Inc. released its latest report on the ‘Tobacco Market in India 2017’. The social factors combined with cultural practices are fostering tobacco use in India. The Tobacco Board of India is major facilitator for tobacco growers in the country. State of art technology that is industry sophistication and infrastructure has buoyed its tobacco market in India.

Netscribes’ latest market research report titled Tobacco Market in India 2017 states that the tobacco market is expected to grow at a CAGR of 6.3% over the period FY 2016 to FY 2020. A large portion of Indian economy is agricultural based where tobacco is the principal cash crop that is grown in many states. India is the 2nd largest producer and 3rd largest exporter of the tobacco in the world. Bidi dominates the tobacco market in India, followed by chewing tobacco and cigarettes. Indians consume bidis, snuffs and smokeless tobacco, including gutka, khaini and zarda.

Increasing regulations in the tobacco industry via taxation bans on advertising have led to a decline in tobacco products volume sales in India. This has been done to reduce consumption of tobacco products in the country. Legal cigarettes contribute to the majority of the tax revenue compared to the other tobacco products. In the Union Budget of 2016-17 the government has priced the tobacco products very high. Tobacco manufacturing companies to increase their sales took the advantage and have launched more tobacco products under new brands and extensions. Furthermore, bans on smoking cigarettes and bidis in public places, pictorial warnings on cigarette boxes have also been discouraging the Indian population to consume tobacco products in the country. In spite of stringent regulations, the tobacco industry has witnessed a growth with ITC, Godfrey Phillips and VST Industries ruling the cigarette market in India.

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About Netscribes

Netscribes ( is a global market intelligence and content management firm with services across the research and information value chain. Venture-funded by US and Singapore private equity firms, the company provides tactical and actionable insights to its clients and enables effective decision-making and strategic implementation.

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