The global cigar market is forecasted to grow at a CAGR of 4.23% during the forecast period (2019-2024).
- Increased consumer inclination towards products complimenting the opulent lifestyles parallel to the rapid growing premiumization of cigars has been lifting up the cigar market globally.
- In addition, the government regulations related to tobacco and tobacco products further influences and remains a key factor driving the cigar market.For instance, the FDA requires premium cigar manufacturers and distributors to label their products with mandatory warning statements, similar to the wording already required on cigarette and tobacco packaging; these warnings must also be included in any advertisements and/or marketing for premium cigars.
Scope of the Report
The global cigar market is segmented by product type into, conventional cigar and premium cigar. By distribution channel, the global cigar market can be segmented into convenience stores, multi-outlets, online stores, and other distribution channels. Multi-outlets are one of the prominent channels for cigar distribution globally. By geography the global cigar market can be segmented into, North America, Europe, Asia-Pacific, South America, Middle East & Africa.
Key Market Trends
Continuous Rise in Smoking Rates Boosting Sales of Conventional Cigars
As economic scenarios improve in the developed countries, like the United States, the appeal of the fine machine-made conventional cigar, a relatively affordable option among tobacco products, is expected to weaken, with many consumers likely to prefer premium cigars. In March 2018, the FDA started soliciting opinion and feedback on its plans to regulate cigars in the United States, by issuing an Advanced Notice of Proposed Rulemaking (ANPRM) for premium cigars, which is expected to affect conventional cigar consumption in the United States and North America. Conventional cigar manufacturers are also conducting R&D activities to come up with better tobacco quality and new flavors, and are even investing to improve packaging in order to increase aesthetic appeal. For instance, in 2019 El Artista Cigars launched a range of new cigar with the brand name Buffalo TEN which claims to offer better tobacco quality with attractive packaging.
Brazil is the Fastest Growing Market
Rising smoking habits among the populace, culture shift, affluent lifestyles, and increasing use of enhanced technology for the development of innovative cigars and cigarillos are majorly driving the cigar consumption in Brazil. In Brazil, flavored cigars are gaining popularity among young and adult people and are considered as a status symbol. People are ready to pay more money for varied flavors. In addition, celebrities have become an ideal example to attract more consumers toward cigars. The smoking trend is gaining popularity among young and adult women too. In Brazil, mass cigars are machine made, which are low priced than premium cigars. Although the cost of machine-made cigars may attract smokers, occasional cigar smokers prefer premium handmade cigars. These premium cigars are gaining popularity, due to their unique taste, which is also influencing their sales. Various flavors are provided by cigar and cigarillos manufacturers, including cocoa, sweet, spicy, salty, woody, and peppery, which are consumed on a large scale in Brazil.
The global cigar market comprises of key players such as Imperial Tobacco Group, Swedish Match, Swisher International, Scandinavian Tobacco Group, Altria Group. The key players are based in North America and South America, while small players are based in Asia-Pacific and the Eastern Europe region. The key strategies adopted by players in the market are mergers and acquisitions, along with product launches.
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