Dublin, Dec. 11, 2023 (GLOBE NEWSWIRE) -- The "Global Cigars & Cigarillos Market Overview, 2023-28" report has been added to ResearchAndMarkets.com's offering.
Global Cigars & Cigarillos Market is anticipated to cross USD 45 Billion by 2028, increasing from USD 35.81 Billion in 2022. The market is expected to grow with 4.18% CAGR by 2023-28.
The key factor propelling the industry is the increase in the number of upscale hotels with cigar lounges. The demand for lounges and bars is growing in upscale hotels as a result of the ban on smoking in public places. For instance, upscale accommodations in London like The Wellesley, Bulgari Hotel, and Corinthia Hotel permit cigar smoking. New cigars with different flavours have been developed as a result of evolving smoking habits. Among youthful customers, flavours like chocolate, tea, vanilla, and wine are becoming more popular.
Few flavours, such white owl and Swisher Sweet, are among the most well-liked flavours predominating the market. However, flavoured goods like Java, Acid, and Tatiana have made significant recent contributions to the expansion of flavoured goods. Given the rising demand for flavour-based cigars, top brands are investing a sizable amount in R&D operations to release cutting-edge flavours on the market.
The market is becoming more varied due to the availability of a wide variety of flavours. Honduras, Nicaragua, Brazil, and the Dominican Republic are the top rival nations. Manufacturers place a strong emphasis on the release of novel items with enhanced flavours and tastes. A number of regional players are entering the market with distinctive product designs. As an illustration, the recently launched Swiss brand "Davidoff" is becoming popular with consumers. The company is renowned for offering exceptional items. Additionally, Nicaragua launched "Plasencia" organic cigar brands to appeal to Chinese consumers.
The cigar market is highly consolidated and competitive, with the strong presence of regional and global players. Well-established companies with well-known brands have a higher penetration rate across retail shelves, mostly because of business expansion and a higher share of consumer preference across developed and developing markets.
Some major players in the market include Scandinavian Tobacco Group A/S, PT Djarum, Imperial Tobacco Group plc, The Japan Tobacco Inc., ITC Limited, Villiger Sohne AG, Altria Group, Inc., Arnold Andre GmbH & Co. KG, Ashton Cigars, Inter-continental Trading USA Inc., Swisher International, Inc., Oliva Cigar Co., Perdomo Cigar Inc, Maya Selva Cigars, Philip Morris International Inc and Rocky Patel Premium Cigars.
Key Product Type Trend: Little Cigars
- Little cigars are expected to grow in popularity due to their price advantage compared to traditional cigarettes, making them attractive to cost-conscious consumers.
- Some consumers perceive little cigars as a potentially less harmful alternative to cigarettes, contributing to their increased popularity.
- Little cigars come in a wide range of flavors, offering a diverse and enjoyable smoking experience, which can attract younger and newer smokers.
- Their smaller size and packaging make little cigars convenient and portable for consumers.
- Smoking little cigars has become a social and cultural trend in some communities, often marketed as a "sophisticated" or "luxurious" option.
- Manufacturers engage in targeted marketing efforts, particularly toward young adults and minority communities, making little cigars more appealing to these specific populations.
Key Price Range Trend: Premium Cigars
- Premium cigars are associated with luxury, sophistication, and status, appealing to those willing to pay a premium for the experience.
- Premium cigars are crafted using traditional methods and high-quality tobacco, appreciated for their craftsmanship and attention to detail.
- Smoking a premium cigar is often seen as a ritual and a way to unwind and relax, emphasizing the enjoyment of flavors and aromas.
- Premium cigars offer a wide range of flavor profiles, appealing to a broad spectrum of smokers based on taste preferences.
- They are commonly enjoyed on special occasions, such as celebrations and significant life events.
- The cigar culture and community have been growing, fostering an appreciation for premium cigars and encouraging exploration within the world of cigars.
- Premium cigars are often sought after as gift items and collector's pieces due to their packaging and presentation.
Key Distribution Channel Trend: Online Shopping
- Online shopping offers unmatched convenience for customers, allowing them to browse and purchase cigars from home or work, 24/7.
- Online retailers typically offer a broader and more diverse selection of cigars compared to physical stores.
- Accessibility to products from various regions and countries, including renowned cigar-producing countries, expands consumer choices.
- Online retailers provide comprehensive information about cigar offerings, aiding customers in making informed decisions.
- Competitive pricing, discounts, promotions, and bulk purchase options are common online, making cigars more affordable.
- Some online retailers provide direct access to cigar manufacturers and boutique brands, fostering direct consumer-producer relationships.
- Online shopping offers privacy and convenience, as consumers can explore and purchase cigars without social judgment.
Market Drivers
- Rising demand in emerging markets, particularly in Asia, the Middle East, and Africa, is contributing to the global growth of the cigars and cigarillos market.
- E-commerce and online retail platforms are transforming distribution and sales channels, providing consumers with convenience and accessibility.
Market Challenges
- High levels of taxation on tobacco products and fluctuating pricing pressures are persistent challenges that can impact the affordability and sales of cigars and cigarillos.
- Maintaining consistent quality in production and managing a global supply chain pose challenges for manufacturers.
Market Trends
- Health-conscious alternatives, such as cigars with reduced tar and nicotine content and electronic cigars, are emerging to address health concerns.
- Customization and personalization options are becoming popular, allowing consumers to create unique blends and packaging for a personalized smoking experience.
Competitive Landscape
- Scandinavian Tobacco Group A/S
- PT Djarum
- Imperial Tobacco Group plc
- The Japan Tobacco Inc.
- ITC Limited
- Villiger Sohne AG
- Altria Group, Inc.
- Arnold Andre GmbH & Co. KG
- Ashton Cigars
- Inter-continental Trading USA Inc.
Considered in this report:
- Geography: Global
- Historic year: 2017
- Base year: 2022
- Estimated year: 2023
- Forecast year: 2028
For more information about this report visit https://www.researchandmarkets.com/r/vsb4xj
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.
