Herbal Cigarettes in India: A ₹200 Cr Market Stalls Despite AYUSH Push & Cannabis Trend
Why India's Herbal Cigarette Market Growth Has Stalled

India's market for herbal cigarettes, once touted as a natural path to quitting tobacco and a modern conduit for ancient Ayurvedic practices, has hit a significant roadblock. Despite initial regulatory support from the Ministry of AYUSH and a growing cultural acceptance of cannabis-based wellness, the category's growth has largely stalled since the end of the COVID-19 pandemic. What began as a promising ₹100-200 crore segment now grapples with consumer rejection, tightening regulations, and a fundamental question: can smoking ever be healthy?

From Quitting Aid to Lifestyle Product: The Consumer Reality Check

The journey of users like Abhishek, a Mumbai-based film writer, and Ashwin, a former corporate lawyer, highlights the core challenge. Both turned to herbal cigarettes—tobacco-free sticks made with herbs—in efforts to quit smoking. Their experiences, however, were far from encouraging. Abhishek, who smoked 20-40 cigarettes daily, found them useless, describing the taste unflatteringly. Ashwin had a similar reaction, giving away his fancy wooden box after a single try.

These anecdotes underscore a market pivot. Initially marketed as a cessation tool, herbal cigarettes have evolved into the foundation of an alternative, Ayurvedic lifestyle. Brands now leverage the ancient principle of 'dhumapana'—the inhalation of medicated herbal smoke recommended in texts like the Charaka Samhita for respiratory health and treating ailments from coughs to hair loss.

The Pioneers and the Pandemic Push

One of the early pioneers was Organic Smokes, co-founded by Piyush Chhabra with his brothers about a decade ago. Starting from a family business in Ayurvedic products, Chhabra saw potential after experimenting with green tea. "When we first launched, we did ₹1 lakh in sales in a single day," Chhabra recalled. However, growth proved difficult in a category that didn't exist. His company, Mea Ame Pvt. Ltd, reported revenue of just over ₹3 crore in FY24.

Other established players like Nirdosh, made by Ahmedabad-based Maans Products India, claim an even longer history, dating back to 1975. Director Prasad Bhavsar stated the brand has resisted buyouts from major tobacco companies and now offers about 40 products online, from cigarettes to smoking mixtures, positioning them as non-tobacco alternatives.

The pandemic years saw a surge in direct-to-consumer brands and listings on specialized e-commerce platforms like ItsHemp. However, the post-pandemic landscape has cooled, with brands like Organic Smokes pulling back from high-commission marketplaces to focus on their own websites.

The Cannabis Effect and Regulatory Headwinds

A significant sub-sector driving interest is cannabis-infused herbal cigarettes. Leveraging cannabis (bhang, ganja) as a recognized ingredient in Ayurveda, Siddha, and Unani systems, these products attract users seeking relief from pain, anxiety, or a legal high. Srijan Sharma of ItsHemp estimates cannabis-based smokes now constitute 20-30% of the herbal cigarette market.

Brands like Delhi-based The Trost, founded by Harshal Goyal in 2020, found a niche with prescription-only, non-psychoactive cannabis cigarettes aimed at calming users. "The trend to take a smoke break during work is now shifting away from tobacco to cannabis cigarettes," Goyal observed. Yet, this segment faces intense scrutiny.

The Ministry of AYUSH is tightening norms. In 2025, advisories warned practitioners against promoting themselves as cannabis specialists and cracked down on misleading ads. Crucially, licensing for cannabis-based Ayurvedic formulations is shifting to the central government, making market entry harder and costlier due to clinical trial requirements. Manufacturers also need excise licenses for cannabis procurement, with strict state-wise reporting rules.

Medical Skepticism and an Uncertain Future

Despite ancient textual support, modern medicine remains unequivocally opposed. Dr. Amit Kumar Mandal, a senior pulmonologist, warns that burning any herb generates toxic waste like tar and carbon monoxide, which can cause damage similar to tobacco over time. The lag in symptom appearance, he notes, may create a false sense of safety among younger users.

Facing these hurdles, brands are innovating. Some are exploring smoking blends on quick-commerce apps. Organic Smokes has launched "medical atomisers"—devices exempt from India's vape ban as they are registered under the Drugs and Cosmetics Act—though they faced a customs raid in Sonipat earlier this year.

With tobacco cigarettes set to become more expensive due to a 40% GST from February 1st, the opportunity for alternatives remains. Yet, the future of India's herbal cigarette market hinges on navigating complex regulations, proving its wellness claims, and ultimately, convincing a new generation that smoking, in any form, can be part of a healthy Ayurvedic lifestyle.