Bad taste: Why stars are shunning pan masala ads

Anil Kapoor recently made headlines for turning down a Rs 10-crore endorsement deal from a leading pan masala company. His decision seems rooted in a sense of responsibility towards fans and public health awareness.

A source close to the actor revealed, “He believes he has a responsibility towards his fans and feels strongly about not promoting products that could harm public health.”

The pan masala industry has traditionally leveraged the allure of celebrity endorsements, showcasing luxurious lifestyles in their advertisements. For instance, Shah Rukh Khan famously starred in a Rajnighandha ad featuring the slogan, “Munh mein Rajnighandha, kadmo mein duniya,” while Pan Bahar promotes itself with the tagline, “Pehchaan kamiyabi ki.”

Celebrities such as Amitabh Bachchan, Shah Rukh Khan, Akshay Kumar, Salman Khan, Ranveer Singh, Hrithik Roshan, Saif Ali Khan, and Anushka Sharma have also endorsed pan masala brands in the past. Cricketers like Kapil Dev and Chris Gayle have also jumped onto the bandwagon, following in the footsteps of legends like Sunil Gavaskar and Virender Sehwag.

Despite controversies and health concerns surrounding the product, the pan masala market in India remains substantial, valued at Rs 44,973 crore in 2023 and projected to grow to Rs 62,067.7 crore by 2032, at a steady growth rate of 3.8%. This industry is a key player in Indian advertising, contributing an estimated Rs 1,200 crore to ad campaigns. During major events like the IPL and T20 World Cup, pan masala brands often dominate airtime, with high-profile celebrity endorsements leading the way. For instance, in 2024, Vimal Elaichi controlled 35% of TV ad shares in the pan masala category.

In recent years, actors like R Madhavan , Kartik Aaryan and John Abraham have also refused deals tied to tobacco or pan masala. In an interview with an online news portal, Aaryan said, “I have been offered a lot of brands that I have refused. Like those supari, pan masala brands. I don’t relate to those things. And I try that as long as I can, I refuse these things.”

This growing trend reflects an increased awareness among celebrities about the impact of their endorsements. With fans closely watching celebrity-brand associations, stars are now more selective, often turning down multi-crore deals that clash with their values.

Rahul Tekwani, Managing Partner at Branding Edge, believes this shift mirrors changing consumer expectations. “The connection between a celebrity’s personal values and the products they endorse is more important than ever, as consumers are becoming increasingly savvy, and they want to support brands that reflect their own beliefs and lifestyles. When icons like Anil Kapoor turn down endorsements for harmful products, it speaks volumes and resonates with the public on a deeper level.”

IPL Landscape

During the IPL 2024 season, Vimal Elaichi Pan Masala emerged as a top advertiser, followed closely by Kamala Pasand. Pan masala brands flooded the airwaves, with Vimal Elaichi alone spending Rs 450-550 crore on advertisements. These brands understand the immense value of high-profile celebrity endorsements, particularly during high-viewership events. Despite growing regulatory pressures, their advertising budgets remain a significant part of the marketing strategy.

Controversies and Legal Implications

Pan masala endorsements have not been without controversy. In 2022, Akshay Kumar faced backlash for appearing in a Vimal Elaichi ad, as the brand also sells tobacco products. Following the uproar, Kumar publicly apologized, disassociating from the brand, and pledged to donate his endorsement fee to charity. International celebrities have also faced similar controversies. In 2016, Pierce Brosnan drew severe criticism for endorsing Pan Bahar, a pan masala brand, claiming he was unaware of its connection to tobacco, igniting debates about the ethical responsibilities of endorsers.

Cricketers have also been involved in pan masala endorsements. Legends like Sunil Gavaskar and Virender Sehwag have appeared in Kamla Pasand ads, while Kapil Dev and Chris Gayle have promoted similar brands. However, former cricketer Gautam Gambhir criticised these endorsements, calling them "disgusting and disappointing". Gambhir pointed out that money should never be more important than promoting public health. He also highlighted that Sachin Tendulkar had been offered large sums to endorse pan masala but refused, keeping a promise he made to his father never to engage in such activities.

Advertising Guidelines and Ethical Responsibilities

The Advertising Standards Council of India (ASCI) has issued guidelines to regulate celebrity endorsements, especially for products that could harm public health. Celebrities are prohibited from promoting products with health warnings, but pan masala brands often exploit legal loopholes by advertising "brand extensions" like mouth fresheners or mineral water. This allows them to continue advertising while skirting around restrictions. In August 2023, the Ministry of Consumer Affairs introduced new guidelines requiring celebrities and influencers to disclose any material connections they have with advertisers, especially for health-related claims.

ASCI has also tightened its rules regarding surrogate advertising, specifically targeting brand extensions in restricted categories like liquor and tobacco. The updated provisions cap advertising budgets based on the sales turnover of these extensions, aiming to curb the misuse of legal grey areas in advertising.

The Delhi High Court has also increased the warning label size on pan masala products by 50%, further complicating packaging and sales. Additionally, the Health Ministry has advised removing tobacco-related advertisements from stadiums. However, the pan masala industry, which remains a significant revenue source for the government (due to its 28% GST), is largely unfazed, with companies like Manikchand diversifying into non-tobacco products such as mineral water.

As more Bollywood stars take an ethical stance, pan masala brands may need to rethink their marketing strategies. According to Tekwani, “In this changing scenario, brands have a significant growth opportunity to realign their marketing strategies by focusing on authenticity. Rather than relying solely on high-profile celebrities, they can partner with influencers and personalities who genuinely resonate with the brand’s values. This approach allows brands to stay true to their identity while tapping into voices that feel more relatable to their audience.”

In a recent interview with e4m , Shradha Agarwal, Co-founder and CEO of Grapes, pointed out, “Alcohol and cigarettes are considered cool, but pan masala is not cool. It’s just a trend that declares the category as ‘uncool,’ which creates challenges for these brands.”

With the rise of digital platforms, influencer marketing has grown exponentially, providing brands access to a wider and more diverse audience. By collaborating with individuals who naturally connect with their target market, brands can strengthen consumer trust and loyalty. This strategy also opens doors to a larger potential market. Influencers often engage directly with their followers, creating meaningful connections that traditional celebrity endorsements may lack. In this way, brands can reposition themselves, emphasizing authenticity and relevance while continuing to expand their reach in a more personalized and impactful way.

Despite tighter regulations and mounting public scrutiny, the pan masala industry remains a major contributor to Indian advertising. According to the Pitch Madison Advertising Report 2024, pan masala brands still dominate TV ad spending, with Vimal Elaichi holding a 35% share of the pan masala ad space. However, with the pan masala industry contributing over Rs 1,200 crore to Indian advertising, the question remains whether these ethical challenges will reshape the industry—or if it will continue to find ways around them.