June 18, 2024

The Cigars and Cigarillos Market Is Estimated To Witness High Growth Owing To Increasing Demand For Premium Tobacco Products

Cigars and cigarillos are premium tobacco products made of cured and fermented tobacco. The products offer a unique smoking experience due to different sizes, shapes and flavors. Cigars are commonly available in various forms such as machine-made or hand-rolled cigars and are gaining popularity as gift items during occasions.

The cigars and cigarillos market is estimated to be valued at US$ 18.83 Bn or Mn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
According to Coherent Market Insights analysis, the adoption of cigars and cigarillos as a social activity or ritual among consumers further impulses the market growth. In addition, innovative product launches catering to shifting consumer preferences also supports the market expansion. However, stringent government regulations about tobacco consumption and rising health awareness are the major factors that may hamper the market growth.

SWOT Analysis
Strength: Cigars and cigarillos market has a large consumer base globally. The premium and super premium cigar segments are experiencing high growth rates. There is a growing trend of cigar lounges and bars which is boosting the social aspect of cigar consumption.
Weakness: Rising taxes and regulations on cigars and tobacco products in many countries can impede market growth. Health awareness about the ill effects of smoking may reduce the consumer base over time. Difficulties in international trade due to regulatory barriers pose operational challenges.
Opportunity: Emerging markets like Asia Pacific and Latin America offer lucrative opportunities for market expansion. Premiumization trend and innovations in product offerings present new revenue streams. Growing popularity of machine-made cigars widens the target segment.
Threats: Strict legal bans and restrictions on smoking in public places hamper demand. Alternative nicotine delivery methods like e-cigarettes and vaporizers pose substitution threat. Rising input costs exert pressure on profit margins.

Key Takeaways
The Global Cigars And Cigarillos Market Size is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period, due to increasing premiumization trend among new consumers. There is rising preference for premium hand-rolled cigars and super-premium machine-made cigarillos.

Regional analysis: The United States dominates the global market with over 35% revenue share in 2022. The presence of major cigar companies and wide distribution networks have solidified its leadership. Meanwhile, Latin America has exhibited the fastest growth, expanding at a CAGR of around 5.8% during the forecast period driven by heavy consumption in Brazil and Cuba.

Key players:

Key players operating in the cigars and cigarillos market include British American Tobacco, Imperial Brands, Plc., Altadis S.A., Habanos S.A., Drew Estate LLC, Swisher International, Inc., Oettinger Davidoff AG., Swedish Match AB, and Trendsettah USA, Inc. The market is concentrated with the top 5 players accounting for over 60% share. Brand building and product launches in emerging categories is the focus of major companies.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it