PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1410602
PUBLISHER: Fairfield Market Research | PRODUCT CODE: 1410602
The global cigar and cigarillo market is on a growth trajectory during forecast period. By the end of 2031, the market is expected to reach a substantial US$ 32 billion, a significant increase from its current size of US$ 23 billion. Presently, sales of cigars and cigarillos contribute to a 3%-5% share of the global tobacco products market.
One of the key drivers of the increasing sales of cigars and cigarillos is their growing popularity among younger adults, often influenced by peer groups. This trend has led to a surge in the number of cigar smokers, particularly in Middle Eastern and European countries. Young adults have shown a high demand for tobacco products, and cigar smoking is becoming a prevalent form of tobacco consumption.
Additionally, rising individual incomes have resulted in an increased demand for premium products like cigars. Aggressive advertising of these products on various media platforms by celebrities has also played a significant role in attracting smokers. For instance, in 2022, 13.4% of all high school students in the U.S. were cigar smokers, highlighting the appeal among young consumers.
While the cigar and cigarillo market witnesses high demand for tobacco products, there is a growing concern regarding the harmful effects of toxic gases. To address this issue, several companies are developing advanced filter technologies to reduce the risks associated with smoking.
Advanced filters, which incorporate high-tech binders in addition to standard materials like carbon, paper, and glue, aim to minimize toxicants in cigars and cigarillos while enhancing the smoking experience. This innovation has resulted in increased demand for these products in the market.
U.S. Cigar and Cigarillo Market: The United States stands as a key market for cigars and cigarillos, driven by the rise of cigar parlors and lounge culture. The increasing presence of cigar parlors, such as Jack Schwartz and TESA Cigar Co., in cities like Chicago is generating high demand for these products. Anticipated growth in the number of cigar parlors and lounges will further boost demand in the U.S. market.
France: France is a significant market in Europe for the cigar and cigarillo industry, boasting a high regional market share. The country has a notable number of female smokers, making it an emerging market for manufacturers. The introduction of flavored cigars and other upgrades is expected to create a strong trend among female smokers in Europe, driving increased demand for cigars and cigarillos.
China: China, a progressing country in the cigar and cigarillo market, is anticipated to experience high-value growth. It is a prominent player in the premium cigars and cigarillos segment, with a growing number of young millionaires contributing to domestic market growth. The presence of numerous manufacturers and the rising number of young consumers are expected to boost demand in China.
Cigar and cigarillo manufacturers are adopting various market penetration strategies to enhance their presence, particularly in lucrative markets. These strategies include product launches, partnerships with key players, acquisitions, and the expansion of regional and global distribution networks.