India Pan Masala Market Research Report: Forecast (2025-2030)

Market Insights & Analysis: India Pan Masala Market (2025-30):

The India Pan Masala Market size was valued at around USD 3.52 billion in 2024 and is projected to reach USD 4.26 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 3.23% during the forecast period, i.e., 2025-30. The India Pan Masala Market growth is due to the increasing inclination of consumers towards exotic & organic pan masala flavors, increase in disposable income, advanced packaging solutions, cultural practice of pan masala consumption, growing investments in the healthier alternative ingredients, advances in online delivery, regulatory norms, increasing investments in advertisements & celebrity endorsements, premiumization of the packing and gift boxes, growing working-class population, and others.

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The marketing and celebrity endorsements of the pan masala led to a surge in the sales of the pan masala, by creating a positive image and influence of the brand. It is due to the negative publicity and raids by the controlling bodies to ensure the quality & health concerns, which negatively influence the brand and the products. However, with the advertisement and endorsements by high-profile celebrities like Shah Rukh Khan, Amitabh Bachchan, Ajay Devgn, and others, and the tie-ups and sponsorships of cricket matches & award shows, it creates an aspirational appeal and a positive image of the brand and products, leading to an increase in the demand for pan masala in the country.

Moreover, the premiumization and the premium packaging of the products by the key market players such as DS Group, Manikchand, Godfrey Phillips, Kothari Products, etc., attract the urban and tier-1 city consumers. For instance, the DS Group introduced Silver Pearls, a saffron and silver-coated fennel product under the Rajnigandha targeting the luxury buyers, and observed a spike of 20% sales in the first three months of the launch. Similarly, other manufacturers are premiumizing the products and packaging, leading to a growth in the market, thus boosting the pan masala industry in India.

India Pan Masala Market Driver:

Shift Towards Non-Tobacco Variants Driving Market Growth – The increasing demand for non-tobacco pan masala variants has surged across India, primarily among the tier-1 cities like Delhi, Mumbai, Bengaluru, Hyderabad, etc., with tier-2 and tier-3 cities like Jaipur, Surat, and others following behind. This demand is driven by the increasing health awareness programs, stringent regulatory measures, awakening of consumer awareness, and urbanization.

The increasing awareness campaigns and programs like the National Tobacco Control Programme (NTCP), Tobacco is injurious to Health through media, Sunita & Mukesh Ad, and several other campaigns have increased the awareness about the negative impact of consuming tobacco and tobacco-based pan masalas on health. Resulting in raising the consciousness of the consumers, inclining towards the healthier and non-tobacco pan masala. Seeking this as a potential for growth, manufacturers like Kothari Products have introduced their non-tobacco, herbal pan masala. Similarly, other manufacturers are developing organic and herbal pan masalas catering to the health-conscious consumers, seeking a traditional mouth-freshening experience.

Thus, the shift of manufacturers and consumers towards the non-tobacco variants not only attracts the existing consumers but also attracts new consumers due to the long-standing cultural practice of consuming tobacco in India, hence augmenting the size & volume of the Pan Masala Industry.     

India Pan Masala Market Challenge:

Stringent Regulatory Compliance Impeding Market Growth – The strict regulations imposed by the government officials of India, to comply with the international regulatory bodies, protect public health, and environmental protection, leading to an increase in the close monitoring and frequent raids.

The rising cases of cancer and other tobacco-related diseases have surged in India, with around 100,000 cases recorded annually, due to the consumption of tobacco and areca nut, key components of the pan masala. This has prompted the government officials to impose regulations like, Cigarettes and Other Tobacco Product Act, Food Safety and Standards Regulations, GST regulations, bans, and others. For instance, under the GST regulation, the non-tobacco pan masala has a taxation of 28% GST and 60% compensation cess, which inflates the price of the pan masalas. Additionally, several states like Maharashtra, Chhattisgarh, Gujarat, Bihar, Tamil Nadu, etc., have a permanent ban on the pan masala manufacturing and sale of the tobacco-based pan masalas, while Delhi and Uttar Pradesh have a temporary ban.

Thus, the increasing standards of food authorities, national regulations, increased taxation, regional bans, and the adherence to the international committees and guidelines act as a major restraint in the growth & expansion of the Indian Pan Masala Industry.   

India Pan Masala Market Trend:

Innovative Flavors & Sustainable Packaging Solution Gaining Traction – The regulatory bans and the shift towards healthier pan masala have led manufacturers to innovate and develop new flavors of pan masala containing healthier substitutes over traditional ones. The incorporation of cardamom, saffron, pineapple, rose, methanol, and other fruits & spices infused pan masala is gaining popularity, especially among the young population, increasing the demand for innovative flavors. Several significant market players like Manikchand Group, Godfrey Phillips India Ltd., and others are extensively investing in research and development and offering new and innovative flavors, thus maintaining a strong distribution network and reputation, meeting the need for natural, innovative flavors of pan masala in India.

Moreover, to minimize the carbon footprint and to manage the plastic waste, the Indian government, under the Plastic Waste Management Rules imposed in 2016 with amendments in 2022, results in the banning of the multi-layered plastic packaging of the pan masala, pushing the manufacturers like Dharampal Satyapal Group (DS Group), Kothari Products Ltd., Baba Pan Masala, etc., to adopt sustainable, eco-friendly packaging solutions, adhering to the regulations and guidelines of the authorities, thus, changing market dynamics and presenting new path for the further growth & development.

India Pan Masala Market (2025-30): Segmentation Analysis

The India Pan Masala Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2025–2030 at the India level. Based on the analysis, the market has been further classified as:

Based on Product Type:

• Tobacco Pan Masala
• Plain Pan Masala
• Silver Coated Pan Masala
• Flavored Pan Masala (Mint, Cardamom, Fennel, etc.)
• Premium Pan Masala
• Others (Meetha, Herbal, etc.)

Based on product type, the flavored pan masala (mint, cardamom, fennel, etc.) holds the largest market share of around 38%. This market share is due to the availability of a large variety of flavors, safe for the young population, increasing investment in the development of new flavors, mouth appeal, absence of stringent regulations, etc.

The flavored pan masala is gaining popularity because of its ingredients such as cardamom, saffron, menthol, fennel, and other aromatic spices. These ingredients offer a refreshing and cooling mouth feel and are sweet; as a result, they are extensively consumed as a mouth freshener and digestive after the meal, among the population of all age groups, with primary consumers being the individuals of the age group 18-35 years. The social acceptance of flavored pan masala has led to its consumption on festive occasions, weddings, and functions. The flavored pan masala has a significant presence in the international market, through exports from India to North America, Europe, and the Middle East, among the migrated Indian population, thus facilitating the large market share of flavored pan masala in the industry.

Based on Pack Size:

• Single-Serve Packaging
• Multi-Packaging
• Family-Sized Packaging
• Bulk Packaging
• Others

Single-serve packaging holds the largest market share of about 54%. This is due to the low cost, strong point-of-sale visibility, portability, easier accessibility to the population, consumers' preference, etc. The daily, habitual consumers of pan masala prefer single-serve packaging, due to the low cost, ranging from USD0.06 - 0.12, increasing the affordability for working-class consumers, drivers, laborers, and others. The strong distribution channel, consisting of around 10 million convenience stores, pan stalls, tea stalls, and other roadside vendors, has easier access to single-serving pan masala packages, increasing the reach and accessibility of the pan masala in the remote, rural, and semi-urban regions, which are among the largest contributors to the sale of pan-masala in India.    

Moreover, the compact and lightweight packaging of the single-serve pan masala and their hanging strip display, which is at eye level, attract and advertise the product, resulting in an increase in the sales of the single-serve pan masalas. Thus, the point-of-visibility at the stores, a strong distribution channel, increasing working-class population prefer the portable, compact, and lightweight pack size of the pan masala, which increases the demand for single-serve pan masala in India.

 Gain a Competitive Edge with Our India Pan Masala Market Report

1. India Pan Masala Market by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. India Pan Masala Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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