PUBLISHER: Grand View Research | PRODUCT CODE: 1842383
PUBLISHER: Grand View Research | PRODUCT CODE: 1842383
The U.S. cigar and cigarillos market size was estimated at USD 13.07 billion in 2024 and is projected to reach USD 24.97 billion in 2033, growing at a CAGR of 7.5% from 2025 to 2033. The major driving factor for the growth of the market includes the rising popularity of cigar lounges and parlors, particularly in urban cities such as Chicago and Los Angeles, which are fostering a culture around cigar smoking.
This trend is contributing to an increase in demand for both cigars and cigarillos, as these venues offer a social space for enthusiasts to enjoy their products in a communal setting. In addition, the growing establishment of cigar lounges across the U.S. is expected to further boost the consumption of cigars. According to After Burners Cigar Lounge, LLC in 2023, there are about 7,684 legally registered and licensed cigar lounge/smoke shop businesses scattered across the U.S.; thus, the growing number of cigar lounges across the U.S. is a major driving factor for the growth of the market during the forecast period.
The increasing consumer demand for premium and luxury tobacco products, especially from millennials in the U.S., is a major driving factor for the growth of the market. Cigar and cigarillos are often associated with a higher social status and a symbol of wealth, leading to their popularity among affluent consumers. This trend is particularly strong in the U.S., where there is increased demand for premium tobacco products. The changing lifestyle in the U.S. is increasing the consumption of tobacco products, which in turn is fueling the market's growth. Flavored products have gained popularity, particularly among younger consumers drawn to the variety of flavors available, such as fruit, chocolate, and alcohol-infused options. This has led to an expansion of the product range, catering to diverse consumer preferences. Thus, increasing consumption of flavored cigars is aiding in the growth of the market during the forecast period.
Moreover, legislation by government bodies, such as the passing of bills aimed at expanding the number of smoking lounges, will create lucrative opportunities for the luxury cigar market, which in turn expands the growth of the cigars and cigarillos market in the U.S. For instance, Assembly Bill 451, introduced in the Wisconsin State Assembly in October 2023, signals the potential opening of new cigar bars, marking the first such opportunity since 2009. Assembly Bill 451, which has received support from the Premium Cigar Association (PCA), has been forwarded to the State Affairs Committee for further consideration. This proposed change in the law will allow more establishments to offer cigar-smoking experiences and broaden the options for cigar enthusiasts. Thus, with the growth of cigar lounges, cigar enthusiasts likely to have greater access to dedicated spaces for an enhanced smoking experience. This may attract existing and potential cigar aficionados, making luxury cigars more readily available to a broader consumer base.
U.S. Cigar And Cigarillos Market Report Segmentation
This report forecasts revenue growth at country levels and provides an analysis of the latest trends and opportunities in each of the sub-segments from 2021 to 2033. For this study, Grand View Research has segmented the U.S. cigar & cigarillos market report based on product, flavor, and distribution channel.