Clove Cigarettes Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Cigarette Type (Hand Rolled, Machine Made Kreteks (Full-Flavored), Machine Made Kreteks (Low Tar Nicotine)), By End User (Male, Female), By Distribution Channel (Online, Offline), By Region & Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 119.02 Billion
CAGR (2026-2031)	5.93%
Fastest Growing Segment	Male
Largest Market	North America
Market Size (2031)	USD 168.16 Billion

Market Overview

The Global Clove Cigarettes Market will grow from USD 119.02 Billion in 2025 to USD 168.16 Billion by 2031 at a 5.93% CAGR. Clove cigarettes, internationally recognized as kreteks, are distinct tobacco products characterized by a blend of minced cloves, clove oil, and tobacco to deliver a unique aromatic flavor profile. The global market is primarily propelled by the product's deep-rooted cultural integration in Indonesia where it remains a staple consumer good. Furthermore, resilient demand in export regions such as Southeast Asia and a loyal consumer base attracted to the specialized taste serve as key drivers that sustain market momentum independent of broader tobacco industry trends.

However, the sector faces a substantial impediment from increasingly stringent fiscal policies and regulatory frameworks designed to curb consumption. High excise duties have escalated production costs and forced price adjustments that threaten affordability for price-sensitive demographics. According to the Association of Indonesian Cigarette Factories (GAPPRI), in 2024, the cumulative increase in cigarette excise taxes reached approximately 60 percent over the preceding four years. This aggressive taxation environment constitutes a significant challenge that could impede the sustained expansion and profitability of the global clove cigarette market.

Key Market Drivers

Deep-Rooted Cultural Significance in the Indonesian Market plays the primary role in sustaining the global clove cigarette trade, as Indonesia serves as both the production hub and the largest consumer base. Kreteks are not merely a tobacco product but an intrinsic part of the social fabric and daily life, creating a demand curve that is remarkably inelastic relative to price. This ingrained loyalty allows the market to withstand fiscal pressures that would typically cripple other tobacco segments. The resilience of this consumption is evident in the value generated; according to Databoks, September 2025, in the article 'Indonesia's Tobacco Excise Revenue Increased in 2024 Despite Declining Cigarette Production', the state revenue from tobacco products grew by approximately 3 percent year-on-year to reach IDR 216.9 trillion in 2024, demonstrating that consumers continue to absorb higher costs due to the product’s essential status.

Strategic Product Innovation Toward Low-Tar and Slim Variants has emerged as a critical driver, as manufacturers adapt to shifting regulatory landscapes and the health-conscious preferences of modern demographics. Major industry players are aggressively diversifying their portfolios away from high-tar legacy products toward smoother, lighter, and technology-driven alternatives to maintain relevance. This shift is supported by substantial capital allocation; according to PT HM Sampoerna Tbk, March 2025, in the '2024 Annual Report', the company realized an investment of approximately USD 330 million by the end of 2024 specifically for the development and expansion of innovative smoke-free and tobacco products. This modernization effort is crucial for sustaining the industry's volume, which remains vast; according to Databoks, in 2025, the export volume of Indonesian tobacco reached 1,148.73 tons in the first quarter alone, reflecting the continued global reach of these evolving products.

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Key Market Challenges

The primary impediment hampering the growth of the Global Clove Cigarettes Market is the implementation of aggressive fiscal policies, specifically the escalation of excise duties which directly undermines product affordability. As governments impose higher tariffs to curb consumption, the retail price of legal kretek products is forced upward, straining the purchasing power of the market's predominantly price-sensitive consumer base. This price disparity creates a distinct competitive disadvantage for legitimate manufacturers, as consumers increasingly "downtrade" to cheaper, lower-tier brands or transition to the illicit market where untaxed products are sold at a fraction of the legal price.

This fiscal pressure has resulted in a measurable contraction of the legal manufacturing sector. According to the Union of Indonesian Cigarette Factory Association (GAPPRI), in 2025, the cumulative impact of these policies was reflected in production data, which showed that national cigarette production volume had reached only 258.4 billion sticks by October, marking a continued decline in legal industry output. This reduction in sales volume not only erodes manufacturer profitability but also discourages reinvestment in production capabilities, effectively stalling the broader expansion of the global clove cigarette market.

Key Market Trends

Premiumization of Artisanal Hand-Rolled Clove Cigarettes is rapidly reshaping the market as manufacturers pivot toward the labor-intensive Sigaret Kretek Tangan (SKT) segment to leverage favorable excise tax tiers and appeal to heritage-seeking consumers. Unlike the machine-made category which faces aggressive fiscal hikes, the hand-rolled sector benefits from government protection policies intended to safeguard employment, allowing these products to remain competitively priced while being repositioned as authentic, high-quality artisanal goods. This strategic resurgence is evident in corporate performance; according to Indo Premier Sekuritas, April 2025, in the report analyzing PT HM Sampoerna Tbk's first-quarter results, the company’s hand-rolled kretek segment recorded a sales volume growth of 8.0 percent year-on-year, significantly outperforming the machine-made portfolio which faced volume contraction.

Strategic Adaptation of Clove Flavors into Cigarillo Formats for Regulated Markets has become a defining trend as producers modify product specifications to bypass strict bans on flavored cigarettes in key Western jurisdictions. By reclassifying clove blends as filtered cigars or cigarillos, and simultaneously diversifying export destinations to regulatory-friendly environments like Vietnam, manufacturers are successfully sustaining international revenue streams despite tightening global tobacco control measures. This adaptability has proven essential for maintaining trade flows; according to GoodStats, September 2025, in the article 'Nilai Ekspor Rokok Indonesia Tembus US$113 Juta Semester I 2025', the export value of Indonesian clove cigarettes reached US$ 113 million in the first half of 2025, driven by these strategic shifts in product classification and market targeting.

Segmental Insights

The Male segment is currently the fastest-growing demographic in the Global Clove Cigarettes Market, primarily driven by entrenched consumption habits in the Asia-Pacific region, particularly Indonesia. Leading market analysis indicates that kretek smoking remains a deeply cultural, male-dominated activity in Southeast Asia, where it is closely linked to social interaction and heritage. This strong cultural adherence, combined with a specific preference for the robust flavor and higher nicotine content of clove blends, ensures steady adoption. Consequently, the expanding male population and rising disposable incomes in these key geographies continue to accelerate the segment’s expansion.

Regional Insights

North America holds the position of the leading region in the Global Clove Cigarettes Market, primarily driven by a robust consumer demand for exotic and flavored tobacco alternatives. This dominance is underpinned by a diverse consumer base that actively seeks unique sensory experiences distinct from conventional products, supported by the region's high disposable income which fuels the premium niche segment. Furthermore, established retail networks and effective distribution channels ensure the widespread availability of these specialty items. Consequently, the region’s evolving preferences for distinct aromatic blends reinforce North America's command over the global market landscape.

Recent Developments

• In December 2024, PT HM Sampoerna Tbk officially inaugurated two new production facilities for hand-rolled clove cigarettes (SKT) in East and Central Java, further strengthening its collaboration with local third-party operators. This expansion was part of the company's strategic effort to enhance its labor-intensive manufacturing capabilities and support the local economy through job creation. The operational commencement of these facilities allowed the company to meet the sustained demand for hand-rolled clove products, ensuring a consistent supply chain for both the domestic market and its extensive export network across the Asia-Pacific region.
• In August 2024, PT Nojorono Tobacco International, a prominent player in the Indonesian cigarette industry, introduced a breakthrough innovation in the hand-rolled clove cigarette segment with the launch of a tea-flavored product. This new variant was developed to appeal to modern consumer tastes while preserving the traditional craftsmanship of hand-rolled kretek. The product launch represented a significant diversification of the company’s portfolio, combining high-quality tobacco and cloves with unique flavor profiles to capture a broader share of the domestic and potentially international clove cigarette market.
• In April 2024, KT&G Corporation, a major South Korean tobacco manufacturer, commenced the construction of its second and third production facilities in East Java, Indonesia, during a groundbreaking ceremony attended by government officials. This expansion serves as a strategic collaboration with local authorities to establish the country as a primary global production hub for the company’s export markets, particularly in Southeast Asia and the Middle East. The new factories are projected to significantly increase the annual production capacity of clove cigarettes and other tobacco products, underscoring the company's commitment to capitalizing on the robust demand within the global clove cigarettes market.
• In January 2024, the exclusive importer for PT Djarum in the United States announced the expansion of its clove-flavored product portfolio with the launch of two new nicotine-free variants. The introduction of these new styles, including a coffee-blended option, was designed to cater to the evolving preferences of adult consumers in the global market who seek the distinct taste and aroma of cloves without tobacco. This strategic product launch aimed to maintain the company's strong foothold in the segment by offering alternatives that comply with strict regulatory standards while preserving the heritage of traditional clove smoking experiences.

Key Market Players

• Philip Morris Products S.A.
• PT. Gudang Garam Tbk
• Nojorono Tobacco Indonesia
• JT International SA
• PT Bentoel Internasional Investama Tbk
• Wismilak Group
• Kretek International, Inc.
• Khyber Tobacco Company
• ITC Limited

By Cigarette Type	By End User	By Distribution Channel	By Region
Hand Rolled Machine Made Kreteks (Full-Flavored) Machine Made Kreteks (Low Tar Nicotine)	Male Female	Online Offline	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Clove Cigarettes Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Clove Cigarettes Market, By Cigarette Type:

• Hand Rolled
• Machine Made Kreteks (Full-Flavored)
• Machine Made Kreteks (Low Tar Nicotine)

• Clove Cigarettes Market, By End User:

• Male
• Female

• Clove Cigarettes Market, By Distribution Channel:

• Online
• Offline

• Clove Cigarettes Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE