Smokeless Tobacco in India, 2017

Table of Contents

1. Introduction 6

1.1. Executive Summary 6

1.2. Definitions 8

2. Market Context 9

2.1. Market context: The market for tobacco products in India has been dominated by Bidis, closely followed by Smokeless tobacco 9

3. Market Size and Structure 10

3.1. Market Volume: Sales of Smokeless Tobacco have suffered a sharp decline since 2012 10

3.2. Market Volume: Per capita consumption of smokeless tobacco has fallen by nearly 50% over the past decade although still remains high at

106.6g per person in 2016 11

3.3. Market Value: In 2009/10, the overall expenditure on Smokeless Tobacco in India was higher than Bidi but lower than Cigarette 12

4. Production and Trade 13

4.1. Production: Recent production data is not available 13

4.2. Production: In 2008/2009, Bidi registered a high growth with

44.4% of total production 14

4.3. Imports: Imports of Chewing Tobacco remained marginal in India 15

4.4. Exports: Chewing tobacco witnessed strong growth in production and exports until 2011 16

4.5. Exports: Exports/re-exports of Chewing Tobacco reach a new high in 2015 17

4.6. Exports: Exports/re-exports of Chewing Tobacco reach a new high in 2013 18

4.7. Exports: Exports of Chewing Tobacco to the UAE decreased

29.5% in 2013 in comparison with the previous year 19

4.8. Exports: The UAE was the leading export of Chewing Tobacco market in value terms in 2013 20

4.9. Exports: China is the top destination for Indian Snuff products, receiving over third of total volumes in 2013 21

4.10. Exports: China has retained first place in the list of export countries for Snuff products from India since 2004 22

5. Taxation & Retail Prices 23

5.1. Taxation: Different states in India apply particular taxes to the Tobacco products 23

5.2. Retail Prices: Smokeless Tobacco products are relatively cheap compared to other tobacco products available in India 24

6. Manufacturers and Brands 25

6.1. Manufacturer & Brands: Latest data show that Dholakia dominated the market regional variations exist 25

7. Usership 26

7.1. Usership: Gender usage gap is much smaller in Only Smokeless Tobacco than in other categories 26

7.2. Usership: Older males, especially those aged 60 and over, have the highest use of snuff 27

7.3. Usership: The highest rate of Chewing Tobacco among men is found in Uttar Pradesh, with the lowest in Gujarat 28

8. Operating Constraints 29

8.1. Operating Constraints: In 2005, smokeless tobacco packs are required to feature pictorial and written warnings 29

8.2. Advertising restrictions: ‘Indirect’ advertisement has been regulated in India since 2005 30

8.3. Health warnings and labelling requirements: Tobacco and nicotine are prohibited as ingredients in any food product 31

8.4. Other Restrictions: Restaurants with more than 30 seats are smoke-free areas in India 32

9. Prospects & Forecasts 33

9.1. Prospects and Forecasts: Smokeless tobacco consumption is forecast to nearly halve over the coming decade to 82,275 tons in 2025 33

9.2. Prospects and Forecasts: Per capita consumption is forecast to drop to 59g per person in 2025 34

10. Appendix 35

10.1. Additional data tables 35

10.2. Methodology 40

10.3. About GlobalData 42

10.4. Disclaimer 43

10.5. Contact Us 44

List of Tables

Table 1: Tobacco Market Breakdown, 2015 9

Table 2: Average Tobacco Expenditure on Last Purchase, RS per Purchase 2009/10 12

Table 3: Tobacco Production in India, Million Kg, 2008/2009 13

Table 4: Non-Cigarette Tobacco Production, Tons, 2008/09 14

Table 5: Imports of Chewing Tobacco, Tons, 2004-2008 15

Table 6: Exports/Re-Exports of Chewing Tobacco & Snuff, Tons & Rs Million, 2001-2013 16

Table 7: Exports/Re-Exports of Chewing Tobacco, Tons & USD Million, 2003-2015 17

Table 8: Exports of Chewing Tobacco by Country of Destination, Tons, 2004-2013 19

Table 9: Exports of Chewing Tobacco by Country of Destination, Value (Rs Million), 2004-2013 20

Table 10: Exports of Snuff by Country of Destination, % Volume, 2004-2013 22

Table 11: Other tobacco: Countervailing duties (November 2016) 23

Table 12: Tobacco Use by Gender, %, 2010 26

Table 13: Use of Chewing Tobacco & Snuff in Selected Indian states, by Gender, %, 2011-2012 28

Table 14: Operating Constraints 29

Table 15: Advertising restrictions 30

Table 16: Health warnings and labeling requirements 31

Table 17: Other restrictions 32

Table 18: Consumption of Smokeless Tobacco, Tons & Grams Per Capita, 2004-2015 35

Table 19: Exports of Chewing Tobacco by Country of Destination, % Volume, 2004-2013 36

Table 20: Exports of Chewing Tobacco by Country of Destination, % Value, 2004-2013 37

Table 21: Exports of snuff by Country of Destination, % Volume, 2004-2013 38

Table 22: Market Forecasts, 2015-2025 39

List of Figures

Figure 1: Executive summary (1) 6

Figure 2: Executive summary (2) 7

Figure 3: Consumption of Smokeless Tobacco, Tons, 2005-2016 10

Figure 4: Per Capita Consumption, Grams/Year, 2005-2016 11

Figure 5: Exports of Chewing Tobacco by Country of Destination, % Volume, 2013 18

Figure 6: Exports of Snuff by Country of Destination, Top Countries, % Volume, 2013 21

Figure 7: Use of Snuff (1) by Age Group, %, 2011-2012 27

Figure 8: Use of Chewing Tobacco(1) by Age Group, %, 2011-2012 27

Figure 9: Smokeless Tobacco Consumption, Tons, 2015-2025 33

Figure 10: Per Capita Consumption, Grams Per Year, 2015-2025 34

Figure 11: Methodology 40

Figure 12: Global Data at a glance 42