Changing Dynamics in Indore’s Pan Masala Market: Competition Intensifies from Premium to Regular Segments
Indore is a major pan masala and paan material market in Madhya Pradesh. Consumer preferences, a strong trade network, and the presence of brands across different categories have made it one of the state’s important markets. Tobacco Plus’s market survey reveals several significant changes in the current scenario of Indore’s pan masala, zarda, khaini, paan chutney, paan material, sweet supari, mouth freshener, and cardamom markets. Particularly after the new taxation regime, supply, grammage, placement, and marketing have become more important than ever.
In the premium pan masala market, Rajnigandha, RMD, and Pan Bahar continue to be the three leading running brands. Their long-standing market presence, quality, consistent supply, and understanding of marketing have helped them maintain a strong position.
The plain pan masala market in Madhya Pradesh is also quite large, and Indore is an important centre in this segment. Considering the growing potential of the premium segment over the past few years, several well-known companies have also introduced brands such as Signature, Nauratan, and Director. Signature and Nauratan have been present in the Indore market for several years and have achieved some success in establishing their identities. However, the challenge of achieving wider placement and counter coverage still remains.
After the new taxation regime came into effect in February, the impact of supply and grammage strategies became clearly visible in the market. Brands that did not make major changes to their supply and grammage found opportunities to strengthen their position. Rajnigandha, RMD, and Pan Bahar made efforts to maintain supplies even during periods of shortage and to control black-market activity, which benefited them. Their regular availability helped them retain a strong market position, and they continue to be among the leading running brands in the premium category.
A change has also been observed in the sales of tin packs. Sales of the Rajnigandha, Signature, Nauratan, and Pan Bahar tin packs have increased. RMD currently does not offer a tin pack, but market observers believe that if the company introduces one, it could have good potential. At the same time, a major portion of the pan masala market still depends on pouches and zipper packs. Pouches of Pan Bahar, Rajnigandha, and RMD are available at almost all major counters, while Nauratan’s presence remains relatively limited. The company needs to focus more on expanding its placement.
Signature has been active in Madhya Pradesh for a long time and has achieved particularly strong sales in the Mahakaushal region. Meanwhile, Pan Bahar has maintained its longstanding hold in Indore and the Marwar region. Its sales are considered strong across the entire Marwar belt.
The premium plain pan masala segment has several brands, including Pan Parag, Kamla Pasand, Signature, Director, Rajnigandha, RMD, and Pan Bahar, resulting in increasingly intense competition.
Regular Pan Masala Market
The picture in the regular pan masala market is somewhat different. Rajshree and Vimal are the main running brands here. Across the Marwar region, Rajshree leads in some markets while Vimal is ahead in others.
Vimal has maintained control over its grammage and supply, which has strengthened its position compared with earlier. Tansen is also a well-known brand in this market, but its sales were affected by the disruption following the new taxation regime. During this period, the brand also suffered because some traders sold Tansen at higher prices. However, the company is now actively working to rebuild its market position.
During the taxation changes, several new brands also entered the market. Brands such as Swagat, Firoza, Lahar, and Paheli attracted consumers by offering higher grammage and larger pouches. The trend towards larger pouches is quite strong in Madhya Pradesh, and companies have introduced higher-grammage products in line with this consumer preference.
Among these, Swagat, Paheli, and Lahar received good acceptance. However, Swagat suffered from a marketing-related setback, which affected its momentum despite good demand. Lahar and Paheli, on the other hand, have successfully established their presence through both small and large pouches, particularly in rural markets.
According to the Tobacco Plus survey, Rajshree currently ranks number one in Indore, Vimal number two, and Kamla Pasand number three.
Kamla Pasand is performing particularly well in the 100-gram tin-pack segment, while Rajshree is also witnessing good growth. Interestingly, Vimal was previously considered the number-one brand in Indore. This shift indicates that brand rankings in the market are not permanent and that even small changes in supply, pricing, grammage, and placement can significantly influence sales rankings.
Zarda Market Faces Pressure from Declining Paan Consumption
The zarda market is directly affected by the declining consumption of paan. As paan consumption has decreased, sales of Jafran Zarda have also been impacted. Nevertheless, both premium and affordable products continue to have their own market.
Baba 120, Baba 160, Baba One, and Baba Black are performing well. Similarly, Ratna 300, despite being a premium product, continues to have demand, although its sales have declined compared with earlier levels.
In contrast, Ratna Light is receiving a good response in the market. According to market observers and paan retailers, consumers who like the taste of Ratna are opting for Ratna Light at a lower price. In Indore, it has established a presence at almost every paan shop.
Baba 120 and Baba 160 also have a strong base of regular customers, while Tulsi 90 has become a major consumer product used along with pan masala.
Khaini Market
In the khaini market, Miraj has a strong presence. Along with it, Nevla Khaini has also gained ground, while Mor Chhap maintains a presence in the market.
Kuber once had a strong market in this segment, but its sales were affected due to insufficient focus on supply and marketing. According to market observers, Indore and its surrounding areas continue to offer considerable potential for khaini.
Paan Chutney Market
The popularity of sweet paan in Indore has resulted in strong demand for paan chutneys. In the premium category, Baba Ki Nauratan, while in the regular segment, Baba Ki Sadhna, Dilbahar, and Gopal chutneys are registering good sales.
Most major paan retailers stock these brands. Gopal’s biggest strengths are its extensive range, quality, quantity, and competitive pricing. This is why Gopal chutneys have secured space at a large number of paan shops.
Known for experimenting with new products, the Gopal Group has also introduced paan chutney in a tube pack. In the regular category, Gopal’s Dilkush Chutney is also used.
In the flavoured chutney segment, KTC’s Khas Green and Pineapple, along with other flavours, enjoy good consumption. Although these products continue to face competition from locally produced chutneys, KTC’s market remains strong because of its quality.
Paan Material Market
In the paan material category, Chaman Bahar has significantly strengthened its longstanding position in Indore. Effective marketing and a strategy of ensuring regular supplies to dealers have also helped reduce the challenge posed by duplicate products.
Its presence can be seen at almost all major paan shops. Along with Chaman Bahar, Snowpeak Paan Raswa also enjoys good consumption, and many paan retailers use both products.
Sweet Supari Market
In the ₹5 sweet supari segment, Ritik Gold continues to dominate. It has remained the number-one brand in this category for a long time.
It is followed by brands such as Nakhrali, Chanchal, Aunty, Kali, and Mary.
Meanwhile, Baba Black Supari has created a distinct identity because of its unique taste and flavour. Its presence is increasing in both urban and rural markets.
Mouth Freshener Market
In the mouth freshener market, Chutki is clearly ahead. Its stable price, quality, and flavour consistency over the years have made it a strong brand among consumers.
It is followed by Bambaiya, Pass Pass Yellow, and Tooti Fruity. Although these brands remain behind Chutki, they have a strong presence in both urban and rural markets.
Cardamom Market
In the cardamom segment, Baba Elaichi holds the strongest position. Its taste and quality have resulted in good consumer acceptance.
Vimal Elaichi is also present in the market and benefits from the company’s strong marketing of pan masala and flavour products. Paan Vilas Elaichi has also maintained its presence in the Indore market.
Supply, Grammage, Placement and Marketing Will Decide the Future
Overall, the current pan masala and paan material market in Indore shows that the battle between brands is no longer limited to product quality. Supply, grammage, pricing, placement, and marketing are all collectively influencing sales.
The disruption following the new taxation regime has forced both established and emerging brands to reconsider their strategies. While established brands continue to remain strong on the strength of their supply systems and trade networks, new brands are attempting to create space through higher grammage, attractive packaging, and competitive pricing.
As a result, Indore’s market is likely to become even more competitive in the coming period. Ultimately, the brand with the strongest combination of supply, placement, pricing, grammage, and marketing will be the one most likely to win the preference of both consumers and the trade.