Driven by Aggressive Marketing, Indian Pan Masala Market Expected to Reach INR 79,600 Crores by 2022

“Driven by Aggressive Marketing, Indian Pan Masala Market Expected to Reach INR 79,600 Crores by 2022”
The Indian pan masala market is being driven by a number of factors such as aggressive advertising, new flavours, tobacco-free products, convenient packaging, increasing disposable incomes and a rising consumer-base.

According to a recently published report by IMARC Group titled, “Pan Masala Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2017-2022”, the Indian pan masala market has grown at a CAGR of 16.5% during 2009-2016, reaching a value of around INR 35,459 Crores in 2016. Pan masala is a mixture of the areca nut, slaked lime, catechu, and condiments, with or without powdered tobacco. It has been used as a mouth-freshener after meals since ancient times, especially in India. It also helps to keep the breath fresh and maintain oral hygiene as some herbs and spices used in pan masala have antibacterial properties. Apart from this, tobacco-free pan masala is also considered to have various medical benefits such as improving digestion, treating gastric ulcers, curing constipation,  relieving headache, treating  cough, etc.

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There are a number of factors which have influenced the demand for pan masala at the global level. The primary factor is the aggressive advertising done by the manufacturers, often by roping in celebrities to endorse their products. By doing so, manufacturers promote the use of pan masala as a status symbol. Moreover, manufacturers offer pan masala in convenient and attractive packaging, which is priced differently keeping in view different economic backgrounds of the consumers. On the other hand, an increase in the disposable income of the consumers, both in the rural and urban regions, has helped expanding the consumer-base, as their expenditure is oriented towards purchasing Pan Masala. Furthermore, new products introduced with different flavours, and without tobacco, have added to its growing popularity. Owing to these factors, the market is expected to reach a value of around INR 79, 600 Crores by 2022.

The report has segmented the market on the basis of product types of pan masala which include pan masala containing tobacco, plain pan masala and flavoured pan masala. Pan Masala containing tobacco represents the dominating type, accounting for more than half of the entire market. On the basis of export and import trends, the report finds that the UAE accounts for one-third of the total exports values, representing the largest importer of pan masala. The UAE is followed by USA, Singapore, Afghanistan, South Africa, Saudi Arabia and Malaysia. The report has also covered the key players operating in the market some of which being Rajnigandha, RMD, Pan Vilas and Pan Parag. Amongst these, Rajnigandha is the largest manufacturer of pan masala.

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The report provides a comprehensive analysis for setting up a Pan Masala manufacturing plant. The study covers all the requisite aspects of the Indian pan masala market and provides an in-depth analysis of the market, industry performance, processing and manufacturing requirements, project cost, project funding, project economics, expected returns on investment, profit margins, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who are planning to foray into the Pan Masala industry in any manner.

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