An Overview Of The Indian Pan Masala Industry

The pan masala market in India reached a value of INR 41,821 Crore in 2021. Looking forward, IMARC Group expects the market to reach INR 53,081.5 Crore by 2027, exhibiting at a CAGR of 3.88% during 2022-2027. Keeping in mind the uncertainties of COVID-19, we are continuously tracking and evaluating the direct as well as the indirect influence of the pandemic. These insights are included in the report as a major market contributor.

Pan masala is consumed to remove the bad odor of the mouth and provide fresh breath. It is prepared using a balanced mixture of lime, catechu, cardamom, areca nuts, flavoring agents and natural perfuming materials. It is preferred as a mouth freshener in both the rural and urban parts of India. This can be accredited to the convenient packaging, significant investments by manufacturers in advertising campaigns and a shift from other tobacco-based products to pan masala.

The demand for pan masala is escalating in India as the leading players are offering innovative product variants, such as chocolate, sugar-coated fennel seeds, cardamom, saffron (Kesar), gulkand (sweet-preserved rose petals) and silver-coated betel nuts, to enhance the flavor and expand their consumer base. They are also introducing products in flexible, convenient and cost-efficient packaging, such as pouches or sachets.

At present, the market is experiencing a decline in the overall product sales as the Government of India has imposed a complete lockdown on account of the surging cases of the coronavirus disease (COVID-19). Consequently, the key players are unable to produce or deliver products at optimum capacity due to the unavailability of labor, supply chain disruptions, and limited availability of raw materials. However, the market is anticipated to grow once normalcy is regained.