The market size of the Global Cigar and Cigarillo Market in the year 2021 is valued at 20.06 billion and is predicted to reach 28.0 billion by the year 2030 at an 3.98% CAGR during the forecast period.
Cigars and Cigarillos are rolled tobacco cigarettes that are coated in leaf tobacco. Cigarillos, cigars, and small cigars are the three basic types of cigars on the market. Cigar smoking is more common among young adults who consume tobacco products. The growing number of cigar parlors and lounges, particularly in developed countries, is projected to fuel market expansion soon. Growing demand for cigar brands, particularly among women, is prompting manufacturers to create luxury cigars; this factor is expected to drive Cigars & Cigarillos market growth throughout the forecast period. The increased launch of innovative cigar products will likely boost Cigars & Cigarillo's market growth over the forecast period. To disguise the unpleasant taste of tobacco, numerous flavours such as wine, tea, chocolate, and vanilla are being introduced, increasing demand among young users. Flavoured cigars are the most popular type of premium cigar.
The rising popularity of smoking has influenced youth demand for cigars and cigarillos. The growing number of cigar and cigarillo smokers around the world, owing to peer pressure and changing lifestyles, is primarily driving cigar and cigarillo market growth. As a result, increased cigar product consumption will likely drive cigar and cigarillo market growth over the forecast period. An increase in collaborations among new market competitors to address the increased demand for cigars is predicted to accelerate market growth.
The cigar and cigarillo market is segmented on the product type, flavor, price range and sales channel. Based on product type, the cigar and cigarillo market is segmented into cigars, cigarillos and little cigars. Based on flavor, the cigar and cigarillo market is segmented into fruit/candy, mint/menthol, chocolate and Others. Based on the price range, the cigar and cigarillo market is segmented into premium and mass. Based on sales channels, the cigar and cigarillo market is segmented as direct sales, cigar specialty stores, hypermarkets/supermarkets, online retailers, and other sales channels.
Based on flavour, the fruit segment is a major contributor to the Cigar and cigarillo market.
Fruit based segment is expected to hold the largest share of the market. The most popular flavor among consumers is fruit-based; nevertheless, there has been a considerable increase in sales of other flavors, such as tea, wine, vanilla, and jazz, among others, in recent years. This expansion is projected to be fueled by the increased popularity of taste products among young customers. Flavor items are also predicted to gain popularity with female consumers.
The mass segment witnessed growth at a rapid rate.
The mass segment grabbed the highest revenue share, and it is anticipated that it will continue to hold that position during the anticipated time. Young people enjoy large numbers of mass-produced cigars and young people like large numbers of mass-produced cigars. Those in the mass-produced category are machine-made and less expensive than products in the premium category. As a result, young consumers, exceptionally high school students, prefer mass-produced goods. Products in this category are available in various flavors, including mint, chocolate, menthol, and vanilla, and demand is growing. These factors are propelling the cigar and cigarillo market segment expansion.
The North American cigar and cigarillo market holds a significant regional revenue share.
The North American cigar and cigarillo market are expected to register the highest market share in revenue shortly. Rising trends in cigar and cigarillos lounges in the country likely drive market expansion in this region. The rising disposable income has altered consumer purchasing and spending habits, particularly in cities. Cigarette taxation is also boosting the development of the cigar and cigarillo sector in American markets. Besides, Asia Pacific had a significant share in the cigar and cigarillo market because of the increased demand for premium cigars from luxury hotels and bars. Furthermore, the increase in youthful population purchasing power in emerging countries is favorably affecting the growth of the cigar and cigarillos market in this region.
Some major key players in the Cigar and cigarillo market are "Scandinavian Tobacco Group A/S, Imperial Brands, Habanos S.A, Drew Estate LLC., Swisher International, Inc., Oettinger Davidoff AG, Swedish Match AB, Agio Cigars, Gurkha Cigars, El Artista Cigars, Arnold André GmbH & Co. KG, Dosal Tobacco Corporation, Oettinger Davidoff AG, Others.