CIGAR AND CIGARILLOS MARKET REPORT OVERVIEW
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The global cigar and cigarillos market size was USD 18752.0 million in 2021 and the market is projected to touch USD 22390.0 million by 2027, exhibiting a CAGR of 3.0% during the forecast period.
The global cigar and cigarillos market is characterized by a diverse range of products catering to varying consumer preferences. Premium cigars, associated with quality tobacco and craftsmanship, appeal to those seeking a luxurious smoking experience, while machine-made cigarillos offer a more affordable and convenient option for casual use. The industry faces challenges from changing consumer attitudes towards smoking, health concerns, and stringent regulations in many countries. Emerging markets in Asia and the Middle East, coupled with the influence of e-commerce on sales channels, contribute to the evolving landscape. Despite health-related trends affecting overall tobacco consumption, there is a noticeable trend towards premiumization, with consumers showing a willingness to invest in high-quality and unique cigar products.
Factors such as increasing health awareness, anti-smoking campaigns, and regulatory restrictions impact the cigar and cigarillos market, influencing consumer behavior. Online sales platforms have expanded accessibility to a wide range of tobacco products, and a shift towards premium offerings is observed despite broader declines in tobacco use. Keeping abreast of regional variations and updated market reports is crucial to understanding the dynamic nature of this industry.
COVID-19 Impact: Market Growth Restrained by Pandemic due to Supply Chain Disruptions
The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.
The pandemic disrupted global supply chains, affecting the production and distribution of tobacco products, including cigars and cigarillos. Restrictions on movement, lockdowns, and changes in workforce availability led to challenges in the manufacturing process. Lockdowns, social distancing measures, and economic uncertainties influenced consumer behavior. Some individuals may have reduced discretionary spending, impacting the demand for premium cigars, while others might have sought more affordable options like cigarillos. Closure of physical retail locations and restrictions on in-person shopping affected sales in traditional brick-and-mortar stores. However, online sales channels might have experienced increased activity as consumers turned to e-commerce.
With lockdowns and social distancing measures in place, there was an accelerated shift towards online shopping. This trend likely benefited the cigar and cigarillos market, as consumers turned to online platforms to purchase tobacco products, providing a new avenue for sales. As people spent more time at home due to lockdowns and restrictions, there was an observable trend of individuals exploring home-based leisure activities. This could have positively impacted the market as people sought ways to relax and enjoy cigars and cigarillos in the comfort of their homes.
LATEST TRENDS
"Premiumization and Flavors in Cigars to Drive Market Growth"
Consumers are increasingly willing to pay more for premium cigars and cigarillos, and this is driving growth in the premium segment of the market. Manufacturers are also responding to this trend by diversifying their product offerings, with new blends, flavors, and sizes. Flavored cigars and cigarillos are becoming increasingly popular, especially among younger consumers and those who are new to the category. Manufacturers are offering a wide variety of flavors, from traditional favorites like vanilla and chocolate to more adventurous options like fruit, coffee, and even bacon. Consumers are increasingly demanding convenient and portable cigar products, and this is leading to growth in the pre-rolled cigar and cigarillo segment. Manufacturers are also offering a wider variety of packaging options, such as resealable pouches and travel cases.
CIGAR AND CIGARILLOS MARKET SEGMENTATION
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- By Type
Based on type the global market can be categorized into cigars, cigarillos.
Cigars: Cigars are premium tobacco products, often hand-rolled, known for their larger size, complex flavors, and association with leisurely or celebratory occasions.
Cigarillos: Cigarillos are smaller, machine-made cigars, offering a more compact and affordable smoking option with diverse flavor profiles, appealing to both occasional and daily smokers.
- By Application
Based on application the global market can be categorized into male, female
Male: Traditionally associated with a sense of sophistication and celebration, cigars have often been depicted as a symbol of masculinity, enjoyed in various social and leisure settings by men.
Female: Cigarillos, with their smaller size and diverse flavor options, appeal to a broad audience, including women, offering a more accessible and less formal smoking experience in various social contexts.
DRIVING FACTORS
"Consumer Preference and Social Trends to Boost the Market"
One of the key driving factors in the global cigar and cigarillos market growth is consumer preference and social trends in urban areas. Shifting consumer preferences, including a demand for diverse flavor profiles, unique blends, and premium offerings, drive innovation and influence product development within the cigar and cigarillos market. Cultural and social trends, including the perception of smoking as a social activity or a symbol of celebration, influence the market. Cigars, in particular, are often associated with special occasions and rituals. The expansion of the market to emerging economies and the globalization of consumer tastes contribute to the growth of the cigar and cigarillos market, as products become more widely available and diverse.
"Increasing Globalization and Demographic Factors to Expand the Market"
Another driving factor in the global cigar and cigarillos market is the globalization and demographic factors offered by these products. The expansion of the market to emerging economies and the globalization of consumer tastes contribute to the growth of the cigar and cigarillos market, as products become more widely available and diverse. Demographic factors, including age groups and gender, play a role in shaping preferences within the market. Younger consumers may seek more affordable and diverse options, while older demographics might be drawn to traditional or premium products. The growth of e-commerce provides a convenient avenue for purchasing cigars and cigarillos. Online platforms allow for broader market reach and provide consumers with access to a wide range of products.
RESTRAINING FACTOR
"Health Concerns and Stringent Regulations to Potentially Impede Market Growth"
One of the key restraining factors in the global cigar and cigarillos market is health concerns and stringent regulations of these products. Increasing awareness of health risks associated with tobacco consumption has led to a decline in overall tobacco use. Health-conscious consumers may opt for alternative products or quit smoking altogether, impacting the demand for cigars and cigarillos. Strict regulatory measures, including restrictions on advertising, packaging, and smoking in public places, can limit the marketing and sales opportunities for cigar and cigarillo manufacturers. Regulations aimed at curbing tobacco use can pose challenges to the industry. Social attitudes towards smoking, coupled with anti-smoking campaigns, contribute to a stigma associated with tobacco use. This can lead to reduced social acceptance and consumption of cigars and cigarillos, particularly in certain demographics.
CIGAR AND CIGARILLOS MARKET REGIONAL INSIGHTS
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"North America to Dominate the Market due to Presence of a Large Consumer Base"
North America has emerged as the most dominant region in the global cigar and cigarillos market share due to several factors. The United States has traditionally been a major market for cigars and cigarillos. The popularity of premium cigars, coupled with a culture that associates cigar smoking with celebratory and leisure activities, contributes to North America's significant share in the market. Cigar smoking in North America, particularly in the United States, has deep cultural roots. Cigars are often associated with celebratory occasions, social gatherings, and leisure activities. The practice of enjoying cigars is embedded in American traditions, including milestones like weddings, births, and business achievements. North America has a thriving market for premium cigars. Enthusiasts in the region appreciate the craftsmanship and quality of premium hand-rolled cigars. Cigar aficionados often seek out cigars from various countries, including those from the Caribbean, Central America, and other renowned tobacco-producing regions.
KEY INDUSTRY PLAYERS
"Key Industry Players Shaping the Market through Innovation and Market Expansion"
The cigar and cigarillos market is notably shaped by influential industry players who play a crucial role in steering market dynamics and influencing consumer choices. These key players boast widespread distribution channels, including brick-and-mortar stores and online platforms, offering consumers convenient access to a diverse range of cigar and cigarillo options. Their robust global presence and brand recognition have fostered heightened consumer trust and loyalty, facilitating increased adoption of their products. Furthermore, these industry leaders consistently invest in research and development, unveiling innovative blends, packaging, and features in cigars and cigarillos to meet the changing needs and preferences of consumers. The collective endeavors of these major players significantly impact the competitive landscape and future trajectory of the cigar and cigarillos market.
List of Market Players Profiled
- Habanos S.A. (Cuba)
- Oettinger Davidoff AG (Switzerland)
- Swedish Match AB (Sweden)
- British American Tobacco (U.K.)
- Swisher International, Inc. (U.S.)
- Trendsettah USA, Inc. (U.S.)
- Altadis S.A. (Spain)
INDUSTRIAL DEVELOPMENT
June 2023: Cigar Journal reports on the growing popularity of cigar lounges and clubs, noting that these establishments are attracting new consumers to the cigar industry.
REPORT COVERAGE
The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.
The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.
REPORT COVERAGE | DETAILS |
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Market Size Value In |
US$ 18752 Million in 2021 |
Market Size Value By |
US$ 22390 Million by 2027 |
Growth Rate |
CAGR of 3% from 2021 to 2027 |
Forecast Period |
2021-2027 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Type and Application |
Frequently Asked Questions
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What value is the cigar and cigarillos market expected to touch by 2027?
The global cigar and cigarillos market is expected to reach USD 22.39 billion by 2027.
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What CAGR is the cigar and cigarillos market expected to exhibit by 2027?
The cigar and cigarillos market is expected to exhibit a CAGR of 3.0% by 2027.
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Which are the driving factors of the cigar and cigarillos market?
Consumer preference and social trends, and increasing globalization and demographic factors are some of the driving factors of the Cigar and Cigarillos market.
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What are the key cigar and cigarillos market segments?
The key market segmentation that you should be aware of, which include, Based on type the cigar and cigarillos market is classified as cigars, cigarillos. Based on application the cigar and cigarillos market is classified as male, female.