Clove Cigarettes Market Analysis Report By Type, By End User, By Region And Segment Forecasts From 2019 To 2025

Industry Insights

The global clove cigarettes market size was accounted for USD 99.45 billion in the year 2018. The market is anticipated to grow at a CAGR of 4.5% over the forecast period. The rise in consumption for machine-built cigarettes coupled with the increasing number of product launches is attributing to the market growth. This cigarette type is popular in Indonesia where it was called kreteks.

The mild taste of clove cigarettes makes it a popular choice among the younger generation, beginners and women smokers. Further, this cigarette is low in nicotine and provides less harness to smokers. This factor has attracted occasional smokers, thereby driving the market growth. Considering the growing demand for mild cigarettes among consumers, companies are emphasizing introducing new products in the market. For example, Sampoerna launched a product called Platinum A, in 2017 to attract the millennials population.

The most common flavors mixed with tobacco and cloves are vanilla, menthol, pineapple, cocoa, orange, and strawberry in order to provide a unique flavor to products. Unique taste and flavor attract a huge number of younger and women population. Over 5 million people chose to consume clove cigarettes in Indonesia, in 2017.

The younger generation in countries like Singapore prefers flavor cigarettes. Flavors such as clove and menthol are popular among this generation, which, in turn, offers a lucrative opportunity for manufacturers to introduce new flavor-based cigarettes.

Type Insights

Based on type, the clove cigarette market is categorized into machine rolled full-flavored, hand-rolled and machine rolled low tar nicotine. Among these types, machine-rolled full-flavored held 45.0% of the market share in the base year2018. Both machines rolled type together accounted for over 80% of the share in the market, in 2018. The clove cigarette has less nicotine and tar than full-flavored cigarettes. This is one of the primary factors supplementing the market growth for this segment. The Nicotine segment with low tar is estimated to grow at a CAGR of 4.9% during the forecast years, 2019 to 2025.

End-User Insights

Among different consumers, the male segment held the maximum market share with over 80% in the base year 2018. Indonesia has the maximum number of millennials smokers, thus accounting for over 90% of the share in this segment, in 2018.

The female segment, on the other hand, is estimated to grow at a CAGR of 3.4% from 2019 to 2025. The rise in the number of women smokers from regions like Europe, North America, and Latin America is attributing to the growth of this segment. In 2018, Russian female smokers alone held 57.0% of the market share. The presence of various flavors makes the clove cigarettes popular among women, thus, driving the market growth.

Regional Insights

The Asia Pacific was the biggest market in 2018 occupying over 60.0% of the market share. The region is anticipated to grow at a CAGR of 4.7% during the forecast years. Growing demand from Indonesia is proliferating the region's growth as the country alone held 92% of the market share, in 2018. Further, low product prices, easy accessibility, and a large number of distribution channels are bolstering product sales in Indonesia. Other countries such as Singapore and Malaysia are prominent market in the Asia Pacific. The introduction of innovative flavors and increasing demand for unique flavors such as herbal flavors are estimated to drive the region's growth in the recent future.

Clove Cigarettes Market Share Insights

Some of the key players operating in the market include Gudang Garam, Nojorono Tobacco Indonesia, Wismilak Group, and British American Tobacco among others. Companies are focusing on the introduction of innovative products with unique flavors and mergers & acquisitions to strengthen their market presence.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels, and provides an analysis of the latest industry trends in each of the sub-segments from 2015 to 2025. For the purpose of this study, Million Insights has segmented the global clove cigarettes market report on the basis of type, end-user, and region:

• Type Outlook (Revenue, USD Million, 2015 - 2025)
    • Hand Rolled Clove Cigarette
    • Machine Rolled Full Flavored Clove Cigarette
    • Machine Rolled Low Tar Nicotine

• End User Outlook (Revenue, USD Million, 2015 - 2025)
    • Male
    • Female

• Regional Outlook (Revenue, USD Million, 2015 - 2025)
    • North America
        • U.S.
    • Europe
        • Russia
    • The Asia Pacific
        • Singapore
        • Indonesia
        • Malaysia
    • Central & South America
    • Middle East & Africa