Herbal Cigarettes in India: Boom, Challenges, and Shifts Ahead

In India, the market for herbal cigarettes is evolving rapidly, driven by a blend of traditional wellness practices and modern consumer trends. This segment, which has grown to an estimated value of ₹ 100-200 crore, has shifted from merely being a method for quitting tobacco to becoming a lifestyle choice for many, especially younger consumers interested in alternatives to conventional smoking.

The journey of herbal cigarettes in India began nearly a decade ago as an “all-natural” solution for those aiming to quit smoking. These products, made without tobacco and infused with various herbs, gained traction as the Ministry of AYUSH formalized the production and sale of Ayurvedic formulations. While the appeal of herbal cigarettes attracted some initial interest, the actual effectiveness in aiding smokers has been questioned by many users.

Take, for instance, Mumbai-based film writer Abhishek, who attempted to quit smoking by trying herbal cigarettes. He described the experience as disappointing, stating that the primary appeal was the attractive packaging rather than the taste, which he likened to “gobar” (cow dung). After multiple attempts and failures, he finally quit smoking altogether in 2023, aided by an app.

Another user, 34-year-old former corporate lawyer Ashwin, shared a similar sentiment. He recalled purchasing a fancy box of herbal cigarettes but found them so unpalatable that he gave them away. Such experiences highlight a significant challenge for the herbal cigarette industry: converting traditional smokers into advocates for these alternatives.

Ayurvedic Roots and Market Dynamics

According to ancient Ayurvedic texts, such as the Charaka Samhita, smoking medicated herbs—known as “dhumapana”—is believed to promote respiratory health and overall well-being. These texts recommend specific practices for inhaling smoke, which has inspired many small brands to enter the herbal cigarette market under the auspices of AYUSH.

One of the earliest brands, Organic Smokes, was co-founded by Piyush Chhabra after he observed a growing interest in Ayurvedic products. Launched around a decade ago, Organic Smokes initially saw remarkable success, generating ₹ 1 lakh in sales within a day. However, challenges arose as the market matured. Chhabra decided to focus on direct-to-consumer sales, moving away from platforms like Amazon due to high commission fees.

Despite being a pioneer, Chhabra acknowledges the difficulties of operating in a nascent category without established guidelines. The Ministry of AYUSH only began issuing comprehensive guidelines for Ayurvedic formulations in 2018, which included parameters for developing and testing these products.

Other brands, such as Nirdosh, have a longer history in the herbal cigarette sector. Established by Maans Products India in 1975, Nirdosh claims to be the world’s first herbal cigarette brand. Director Prasad Bhavsar shared that they resisted acquisition offers from major tobacco companies, allowing them to maintain their independent status. Nirdosh now offers a range of tobacco-free products, positioning itself as a healthier alternative for smokers.

The Cannabis Connection

Interestingly, a growing segment of herbal cigarettes incorporates cannabis, appealing to a different audience. Products made with cannabis or infused with its psychoactive component, tetrahydrocannabinol (THC), now account for approximately 20-30% of the herbal cigarette market, according to industry estimates.

Srijan Sharma, co-founder of the specialized e-commerce platform ItsHemp, indicated that many consumers use herbal smokes as mixers with cannabis products. This trend reflects a broader shift in consumer preferences, particularly among younger individuals seeking alternatives to traditional smoking.

Delhi-based company The Trost has successfully tapped into this market by offering cannabis-infused herbal cigarettes and other related products. Founder Harshal Goyal emphasized that their products are designed to provide a lifestyle choice rather than a psychoactive experience. However, strict regulations around cannabis-based products complicate distribution, as prescriptions from Ayurvedic practitioners are required.

Amid these evolving dynamics, the Ministry of AYUSH has tightened regulations regarding the prescription and sale of cannabis-based products. New guidelines mandate stricter oversight, making it increasingly difficult for startups to navigate the regulatory landscape. Goyal noted that the cost of clinical trials for new formulations can reach up to ₹ 10 lakh per SKU, creating a barrier for smaller brands.

The herbal cigarette market faces further challenges as traditional tobacco products are set to become more expensive due to a new 40% goods and services tax, which includes both excise duty and cess beginning on February 1, 2024. This change could impact consumer behavior and the overall market landscape.

Despite the growth potential, medical experts remain skeptical about the health benefits of smoking anything, including herbal cigarettes. Dr. Amit Kumar Mandal, senior director of pulmonology and critical care at Paras Hospital, cautioned that any form of smoking produces harmful byproducts, such as tar and carbon monoxide, which can damage respiratory health. He emphasized that the long-term effects of using alternatives like herbal cigarettes are still uncertain.

As the market for herbal cigarettes in India continues to develop, it remains to be seen whether these products can bridge the gap between traditional Ayurvedic practices and modern consumer demands. The interplay of regulatory changes, consumer preferences, and health impacts will shape the future of this evolving sector.