Small Business Ideas & Project Opportunities in Manufacturing of Pan Masala, Tobacco, Zarda and Kimam

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Small Business Ideas & Project Opportunities in Manufacturing of Pan Masala, Tobacco, Zarda and Kimam. Profitable Small Business Ideas in India

Pan Masala is a balanced mixture of areca nuts (also known as supari), catechu, cardamom, lime, flavouring agents and some natural perfuming materials. It is widely used to remove the bad odour of the mouth by providing a fresh breath and comes in attractive user-friendly packets and containers. Despite its growing demand in rural areas, pan masala is gaining prominence in urban areas of India. It is prepared with precise measurements so as to maintain a balance of all ingredients while keeping in mind its taste and human health.

Pan Masala acts as a mouth freshener and unlike other Western synthetic pan masala which are made with chemical and petroleum ingredients, the Indian pan masala is considered safer. It is available in hygienic and attractive foil packets (sachets) and tins which are easy to store and carry.

Factors like its immense popularity, constantly increasing disposable incomes, convenient packaging, aggressive advertising campaigns by manufacturers and the large-scale switching of consumers from tobacco products to pan masala are currently encouraging the growth of pan masala market.

The Indian pan masala market reached a value of INR 36,523 Crores in 2016 and is further expected to reach nearly INR 81,992 Crores by 2022. The strong growth of the market can be attributed to a number of factors. As pan masala has been traditionally popular in India, it is consumed by all age groups and social classes in the region. Large population along with rising disposable incomes also provide a huge consumer base for pan masala products. Moreover, convenient packaging, easy availability, competitive marketing by manufacturers as well as the shift from tobacco to tobacco-free products have further fuelled the demand for pan masala globally. Although it has gained prominence in urban households of India, especially among adolescents, its demand is growing faster in rural households.

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