The global cigar and cigarillos market size is expected to reach USD 21.02 billion by 2025, according to a new report by Grand View Research, Inc. It is anticipated to register a CAGR of 3.1% during the forecast period. Implementation of heavy taxes and increasing price of conventional cigarettes drive the product demand. Increasing number of consumers prefer cigars as they have better reputation and lower price, which is projected to positively influence growth.
The mass segment held major market share of global market owing to the growing popularity of cigars and cigarillos among the young consumers. Moreover, growing number of female consumers in the developed countries is expected to fuel the demand for mass products over the forecast period. However, the premium segment is expected to expand at the highest CAGR over the next seven years. Presence of luxury hotels and bars with cigar lounges, in developed countries, such U.S., U.K., and China have made comeback, thus, the consumption has increased drastically.
The flavored product segment is expected to expand at a CAGR of 3.2% over the forecast period. Many new consumers prefer flavored cigars as the taste is perceived to be better than the natural tobacco flavored products. Moreover, many consumers are migrating from other tobacco products including conventional cigarette to cigar and cigarillos. In addition, many companies have launched various flavored product to attract consumers, fueling the demand.
North America was the largest consumer in the cigar and cigarillos market in 2018. Growing demand for premium products in U.S. has helped the region gain major share. U.S. was the largest consumer in the world, accounting for more than 55% share of overall market. Followed by U.S., Germany and China are the largest markets. Growing number of young billionaires coupled with rising number of cigar lounges are the key factors driving the growth in China.
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Further key findings from the report suggest:
- In terms of revenue, the premium product segment is projected to ascend at a CAGR of 3.3% over the forecast years
- The mass product segment led the global market with an overall revenue share of over 82.3% in 2018
- Flavored segment was valued at USD 4.93 billion in 2018, is projected to exhibit a high CAGR in the next few years
- North America led the global cigar and cigarillos market in 2018, with 57.0% of revenue share and is projected to continue leading over the forecast period
- Growing number of young consumers including men and women is further expected to propel the growth
- The market is highly competitive in nature. Major companies include Altria Group, Inc.; Habanos S.A.; Scandinavian Tobacco Group A/S; Gurkha Cigars; Swisher International, Inc.; Agio Cigars; Swedish Match AB; OETTINGER DAVIDOFF AG; Drew Estate; and Trendsettah USA, Inc.
- Various manufacturers are concentrating on new product launches, capacity expansions, and technological innovations to cater to the existing and future demand patterns from upcoming product segments.