India: Tobacco Market 2025

Tobacco Market Size in India

In 2021, the Indian tobacco market decreased by -5.1% to $X for the first time since 2014, thus ending a six-year rising trend. Overall, consumption, however, saw prominent growth. Tobacco consumption peaked at $X in 2020, and then dropped in the following year.

Tobacco Production in India

In value terms, tobacco production declined to $X in 2021 estimated in export price. In general, production, however, continues to indicate a prominent expansion. The growth pace was the most rapid in 2015 when the production volume increased by 92%. Over the period under review, production hit record highs at $X in 2020, and then contracted in the following year.

Tobacco Exports

Exports from India

Tobacco exports from India shrank to X tons in 2021, falling by -8.5% compared with 2020. In general, total exports indicated a tangible increase from 2012 to 2021: its volume increased at an average annual rate of +2.5% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, exports decreased by -33.1% against 2018 indices. The pace of growth appeared the most rapid in 2018 when exports increased by 24% against the previous year. As a result, the exports reached the peak of X tons. From 2019 to 2021, the growth of the exports remained at a lower figure.

In value terms, tobacco exports reached $X in 2021. Overall, exports, however, enjoyed a prominent expansion. The growth pace was the most rapid in 2016 when exports increased by 35%. The exports peaked at $X in 2019; however, from 2020 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

Afghanistan (X tons), Thailand (X tons) and the United Arab Emirates (X tons) were the main destinations of tobacco exports from India, with a combined 41% share of total exports. These countries were followed by Singapore, Yemen, the United States, Saudi Arabia, South Africa, Djibouti, Sri Lanka, Malaysia, Nigeria and Nepal, which together accounted for a further 39%.

From 2012 to 2021, the biggest increases were recorded for Djibouti (with a CAGR of +78.5%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, Afghanistan ($X), Thailand ($X) and the United States ($X) appeared to be the largest markets for tobacco exported from India worldwide, together comprising 46% of total exports. Singapore, South Africa, Yemen, the United Arab Emirates, Sri Lanka, Djibouti, Malaysia, Saudi Arabia, Nepal and Nigeria lagged somewhat behind, together comprising a further 34%.

Djibouti, with a CAGR of +81.9%, recorded the highest growth rate of the value of exports, in terms of the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The average tobacco export price stood at $X per ton in 2021, rising by 14% against the previous year. In general, export price indicated a buoyant increase from 2012 to 2021: its price increased at an average annual rate of +7.4% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, tobacco export price increased by +90.7% against 2012 indices. The most prominent rate of growth was recorded in 2016 an increase of 23% against the previous year. Over the period under review, the average export prices reached the peak figure in 2021 and is expected to retain growth in years to come.

There were significant differences in the average prices for the major export markets. In 2021, amid the top suppliers, the country with the highest price was the United States ($X per ton), while the average price for exports to Saudi Arabia ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to Afghanistan (+10.4%), while the prices for the other major destinations experienced more modest paces of growth.

Tobacco Imports

Imports into India

Tobacco imports into India was estimated at X tons in 2021, increasing by 10% compared with 2020. Over the period under review, imports enjoyed resilient growth. The most prominent rate of growth was recorded in 2013 with an increase of 70%. Imports peaked at X tons in 2019; however, from 2020 to 2021, imports remained at a lower figure.

In value terms, tobacco imports skyrocketed to $X in 2021. In general, imports posted prominent growth. As a result, imports attained the peak and are likely to continue growth in the immediate term.

Imports by Country

In 2021, the Philippines (X tons) constituted the largest tobacco supplier to India, with a 56% share of total imports. Moreover, tobacco imports from the Philippines exceeded the figures recorded by the second-largest supplier, the United Arab Emirates (X tons), twofold. Indonesia (X tons) ranked third in terms of total imports with a 9.2% share.

From 2012 to 2021, the average annual rate of growth in terms of volume from the Philippines totaled +77.0%. The remaining supplying countries recorded the following average annual rates of imports growth: the United Arab Emirates (+31.8% per year) and Indonesia (+112.3% per year).

In value terms, the largest tobacco suppliers to India were the Philippines ($X), the United Arab Emirates ($X) and Indonesia ($X), together accounting for 81% of total imports.

In terms of the main suppliers, Indonesia, with a CAGR of +124.8%, recorded the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the average tobacco import price amounted to $X per ton, jumping by 59% against the previous year. Overall, the import price showed a relatively flat trend pattern. As a result, import price reached the peak level and is likely to continue growth in the immediate term.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Indonesia ($X per ton), while the price for France ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by South Africa (+51.1%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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