Tobacco in India
Euromonitor International's Tobacco in India market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data.
Tables: 65 | Publication date: Feb 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Cigarettes; Cigarettes including RYO; Cigars; Smoking tobacco
Executive summary
India’s government takes an increasingly hard line on cigarettes
The Indian government has traditionally taken a harsh stand towards cigarettes. Taxation of cigarettes is not in alignment with production and consumption patterns. Despite representing a relatively small share of total tobacco consumption in India, cigarettes account for a very large chunk of excise collected from the tobacco market.
Historically subject to yearly excise duty hikes, the Indian government began to levy VAT on cigarettes in 2007. Moreover, new regulations on cigarette packaging were introduced at the start of the year, with all now packs obliged to display written and pictorial health warnings. All forms of advertising by cigarette manufacturers (including the sponsorship of sports and cultural events) have been banned since 2004.
Higher taxes on cigarettes prove ineffective in reducing tobacco consumption
The Indian government defends its policy of higher taxes on cigarettes as a measure designed to reduce consumption. Other forms of tobacco, most notably smoking tobacco, are not taxed to the same extent, mainly because these products are manufactured by small scale operators and so-called cottage industries. However, higher taxation on cigarettes has traditionally failed to lower consumption. In contrast, heavy taxation drives many smokers to switch from the high value cigarettes sector to cheaper alternatives like beedis (pre-rolled cigarettes made from low quality smoking tobacco, wrapped in tendu leaves and usually smoked by low income consumers) and chewing tobacco. This in turn reduces the demand for superior quality raw tobacco, restricting the revenues of Indian tobacco farmers.
Cigarettes shows another sluggish performance in 2006
According to the Tobacco Institute of India (TII), the number of cigarettes sold in the country has remained more or less constant since the late 1980s, barring a few fluctuations. Despite being the third largest producer and consumer of tobacco in the world, the number of smokers in India has also remained constant. This would seem to be borne out by the performance of the cigarettes sector over 2004-2006, when growth in volume sales was marginal.
Strict regulatory controls and high taxes have traditionally failed to reduce the number of cigarette smokers in India. As older smokers quit or die off, there are always plenty of younger Indians willing to take up the habit in an effort to look trendy and cool.
Cigars maintains its dynamic development in 2006
The Indian cigars sector continued to develop at a dynamic pace in 2006. Demand for cigars in India is still emerging, driven by rising disposable incomes, Western influences and the perception of cigars as a lifestyle accessory or symbol of affluence. All of these factors should continue to support robust growth in cigars volume sales over the forecast period.
Contraband trade booms as taxes on cigarettes continue to rise
Illicit trade in cigarettes is a thriving business in India. Given the high taxes levied on cigarettes, many people find it more economical to procure their favourite brands from contraband suppliers. As the price differential between legitimate, duty paid products and smuggled products continues to rise, contraband trade is only expected to increase over the forecast period. Moreover, this situation will continue to be compounded by the fact that laws relating to contraband trade in cigarettes are poorly enforced.
Table of contents
TOBACCO IN INDIA : MARKET INSIGHT
EXECUTIVE SUMMARY
India’s government takes an increasingly hard line on cigarettes
Higher taxes on cigarettes prove ineffective in reducing tobacco consumption
Cigarettes shows another sluggish performance in 2006
Cigars maintains its dynamic development in 2006
Contraband trade booms as taxes on cigarettes continue to rise
OPERATING ENVIRONMENT
Smoking Population
Death by Cause
Legislation
Tar
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 1 Cigarettes: Taxation 2000-2006
Production/Imports/Exports
Table 2 Trade Statistics: Cigarettes 2001-2006
Beedis in India
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 3 Deaths from Heart Disease 2001-2006
Table 4 Deaths from Lung Cancer 2001-2006
Table 5 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 6 Sales of Tobacco by Sector: Volume 2001-2006
Table 7 Sales of Tobacco by Sector: Value 2001-2006
Table 8 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 9 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 10 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 11 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 12 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 13 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 14 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - INDIA
GODFREY PHILLIPS INDIA LTD - TOBACCO - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Godfrey Phillips India Ltd: Key Facts
Summary 3 Godfrey Phillips India Ltd: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 4 Godfrey Phillips India Ltd: Production Statistics by Factory 2005-2006
COMPETITIVE POSITIONING
Summary 5 Godfrey Phillips India Ltd: Competitive Position 2006
GTC INDUSTRIES LTD - TOBACCO - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 GTC Industries Ltd: Key Facts
Summary 7 GTC Industries Ltd: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 8 GTC Industries Ltd: Competitive Position 2006
ITC GROUP - TOBACCO - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 ITC Group: Key Facts
Summary 10 ITC Group: Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 11 ITC Group: Production Statistics by Factory 2005-2006
COMPETITIVE POSITIONING
Summary 12 ITC Group: Competitive Position 2006
VST INDUSTRIES LTD - TOBACCO - INDIA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 VST Industries Ltd: Key Facts
Summary 14 VST Industries Ltd: Operational Indicators 2004-2005
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 15 VST Industries Ltd: Competitive Position 2006
CIGARETTES IN INDIA
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 16 Price Bands: Cigarettes 2006
Cigarettes: Filter Splits
Table 15 Slims/superslims Penetration 2006
Cigarettes: Pack Splits
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 16 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 17 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 20 Sales of Cigarettes by Price Band: % Volume Breakdown 2001-2006
Table 21 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2001-2006
Table 22 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2001-2006
Table 23 Sales of Cigarettes by Filter Vs Non-filter 2001-2006
Table 24 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2001-2006
Table 25 Sales of Cigarettes by Length 2001-2006
Table 26 Sales of Cigarettes by Pack Size 2001-2006
Table 27 Sales of Cigarettes by Pack Type 2001-2006
Table 28 Cigarettes Company Shares 2002-2006
Table 29 Cigarettes Brand Shares 2003-2006
Table 30 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 31 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 32 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 33 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 34 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 35 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 36 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 37 Forecast Sales of Cigarettes by Filter Vs Non-filter 2006-2011
Table 38 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2006-2011
Table 39 Forecast Sales of Cigarettes by Length 2006-2011
Table 40 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 41 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN INDIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Sales of Cigars by Subsector: Volume 2001-2006
Table 43 Sales of Cigars by Subsector: Value 2001-2006
Table 44 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 45 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 46 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 47 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 48 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 49 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO IN INDIA
HEADLINES
TRENDS