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Cigarettes become expensive, huge decline in sales! Box of 70 now for Rs 85

Samira Vishwas | May 19, 2026 11:25 PM CST

Tezzbuzz Desk- After the government increased the excise duty, smoking cigarettes in the country has become more expensive than before. Its effect is now clearly visible in the market. Big companies like ITC and Godfrey Phillips India have recorded a decline of up to 20 percent in cigarette sales. Due to rising prices, people are now leaving expensive brands and turning to cheaper options.

Prices increased from pocket pack to king size

Cigarette companies have increased the prices of many popular brands significantly. According to reports, Godfrey Phillips India has increased the price of ‘Pocket Marlboro’ from Rs 70 to Rs 85. Whereas ITC has increased the price of ‘Gold Flake Superstar’ from Rs 70 to Rs 79. These brands have a major share in the total sales of the companies, hence the impact of the price increase is directly visible on the business.

Why are sales decreasing?

On February 1, 2026, the government had increased the excise duty on cigarettes by 30 to 40 percent. The companies passed this additional burden on the customers.

Now customers have to spend Rs 25 to 28 for a premium cigarette, whereas earlier the price was around Rs 20. For this reason, there was a huge decline in sales in April and May.

Customers leaving expensive brands

According to dealers, there has not been much decline in the number of cigarette smokers, but people are now buying lower priced brands. The premium “king-size” category has been most impacted.

This category includes brands like ITC’s ‘Classic’ and ‘Gold Flake Kings’, while Godfrey Phillips India’s ‘Marlboro’ also falls in this segment.

Impact on profits of companies

Analysts believe that the decline in sales may also affect the margins of companies. According to reports, cigarette companies may see a big decline in margins in the first quarter of financial year 2027.

However, at present there is not much weakness in the shares of these companies in the stock market. Investors are now keeping an eye on how fast customers move away from expensive brands in the coming months.