Cigar and Cigarillo Market

Cigar and Cigarillo Market Outlook (2024 to 2034)

The value of the global cigar and cigarillo market is estimated at US$ 23.5 billion in 2024 and is expected to expand at a 4.9% CAGR to reach US$ 37.9 billion by the end of 2034. Despite increasing health awareness and regulatory measures becoming a major challenge, the market is demonstrating resilience and flexibility.

Impacted by international trade and cultural exchange, this market is creating both challenges and opportunities for industry participants. As manufacturers work through these issues, there is a strong emphasis on sustainability.

Key Market Growth Drivers

• Expanded distribution networks, such as online platforms and specialty stores, are attracting a larger consumer base, thus driving cigar and cigarillo market growth.
• Changes in consumer tastes and lifestyles, including an increasing appreciation for luxury and leisure, are boosting the demand for cigars and cigarillos.
• Cigars are popular among people looking for rich experiences because they are perceived as emblems of status, refinement, and leisure.
• Continuous innovation in tastes, packaging, and marketing methods catering to a wide range of consumer preferences is fostering market expansion.
• Cross-border trade and cultural interchange are currently exposing consumers to a diversity of cigar products, thus expanding the cigar and cigarillo market size.
• Growing demand for premium cigar brands reflects consumer preferences for superior quality and craftsmanship.

Report Attributes	Details
Cigar and Cigarillo Market Size (2024E)	US$ 23.5 Billion
Forecasted Market Value (2034F)	US$ 37.9 Billion
Global Market Growth Rate (2024 to 2034)	4.9% CAGR
North America Market Value (2034F)	US$ 10 Billion
East Asia Market Value (2024E)	US$ 5.4 Billion
Sales of Cigarillos (2034F)	US$ 15.6 Billion
Sales of Cigars (2034F)	US$ 13.9 Billion
Key Companies Profiled	Gurkha Cigar Group Fenn Thompson & Co. Royal Cigar Works Scandinavian Tobacco Group A/S. Imperial Brands Agio Cigars Altria Group, Inc. Swisher International, Inc. Swedish Match AB El Artista Cigars Oettinger Davidoff AF Nicaragua, S.A. Trendsettah USA, Inc. Habanos S.A. AJF Cigars Boutique Blends Cigars

Why are Sales of Cigars and Cigarillos Increasing Even Today?

“Flavor Innovations in Cigars and Cigarillos Attracting More Consumers”

Innovations in flavors play an important part in increasing customer interest in the cigar and cigarillo industries by providing a varied range of appealing options. These developments respond to changing customer preferences, providing sensory experiences that go beyond typical tobacco flavors. Flavored cigars and cigarillos, whether infused with mild fruit notes, spices, or exotic components, appeal to a wider audience, including first-time cigar smokers.

Flavor innovations not only distinguish businesses in a competitive landscape but also encourage consumers to explore and experiment, which fosters brand loyalty and increases sales. Furthermore, they contribute to the perception of cigars and cigarillos as luxurious indulgences, appealing to people looking for enhanced sensory experiences and moments of calm.

“Rising Demand for Premium and Handcrafted Cigars and Cigarillos”

Rising production of premium and handcrafted cigars and cigarillos is one of the key cigar and cigarillo market trends. With discerning consumers placing a strong emphasis on quality and unique experiences, they are increasingly drawn to premium offerings distinguished by superior craftsmanship and distinctive flavors. This trend exemplifies changing consumer tastes for authentic and premium cigars, as people are in search of heightened smoking sensations characterized by meticulous craftsmanship and outstanding flavor.

In response to growing consumer demand, manufacturers are expanding their handmade and premium lines to raise their industry status and variety in the cigar and cigarillo market. This shift reflects a broader trend toward complexity and refinement in customer preferences, emphasizing the desire for high-quality items in the market.

What are the Obstacles Faced by Cigar and Cigarillo Producers?

“Decreasing Consumer Interest in Traditional Tobacco Products Due to Associated Health Risks”

The emergence of alternative products such as e-cigarettes, vaping devices, and smokeless tobacco has diversified consumer choices and shifted preferences away from traditional tobacco products. These alternatives often reduce health risks and offer different sensory experiences, appealing to consumers seeking alternatives to traditional smoking.

Marketing efforts and regulatory frameworks surrounding these alternatives vary, creating further competition for attention and market share. As a result, cigar and cigarillo producers must innovate, differentiate their products, and adapt marketing strategies to remain competitive in an evolving landscape shaped by changing consumer preferences and regulatory dynamics.

“Growing Demand for Tobacco-free Alternatives”

Customers are prioritizing products that they perceive to have fewer health hazards or are associated with healthier lives as health consciousness rises. As a result of this change, people are becoming more interested in tobacco-free or alternative smoking options, such as electronic cigarettes. A discernible tendency towards premiumization is also present, as customers seek premium, handcrafted cigars and cigarillos that provide distinctive flavor profiles and heightened experiences. In this cutthroat industry, flavors, packaging, and branding are also essential for bringing in customers.

Country-wise Insights

In North America, particularly in the United States and Canada, the market for cigars and cigarillos is becoming increasingly significant. Consumers in these locations have a strong tendency toward premiumization and are actively seeking high-quality, handcrafted products. This trend reflects a growing appreciation for craftsmanship and distinct flavor profiles among cigar and cigarillo enthusiasts.

How are Cigar and Cigarillo Suppliers Strategizing in the United States?

“Culture of Luxury Driving Demand for Premium Cigars and Cigarillos”

Attribute	United States
Market Value (2024E)	US$ 4.1 Billion
Growth Rate (2024 to 2034)	4.9% CAGR
Projected Value (2034F)	US$ 6.7 Billion

Premium tobacco products are enjoyed by a sizable portion of the population in the United States, which is also huge and diversified. High-quality cigars and cigarillos are in great demand due to the nation's affluent population and luxurious lifestyles. Further, the United States has a strong retail infrastructure and distribution network, giving manufacturers opportunities to connect with customers across the country.

Product innovation and marketing freedom are possible in the United States because of its comparatively favorable regulatory environment in comparison to certain other nations, even with all of the regulatory obstacles.

How is Cultural Perception of Smoking Influencing Demand for Cigars and Cigarillos in China?

“Widely Accepted View of Smoking as Symbol of Social Prestige”

Attribute	China
Market Value (2024E)	US$ 3.8 Billion
Growth Rate (2024 to 2034)	5.7% CAGR
Projected Value (2034F)	US$ 6.6 Billion

In the culture of China, smoking has a long history and is frequently connected to social events, professional meetings, and festive occasions. As a result, smoking, including the use of cigars and cigarillos, represents prestige, wealth, and hospitality. In China’s culture, offering cigars or cigarillos to guests is regarded as a sign of respect and hospitality. Furthermore, cigars are usually viewed as costly commodities, sought after by wealthy people and those seeking to display refinement and achievement.

Furthermore, increased exposure to Western influences and international travel are resulting in a renewed interest in premium cigars among China’s customers, who are seeing smoking them as a trendy activity. Finally, the socially accepted view of smoking as an activity associated with social prestige is having a significant impact on the demand for cigars and cigarillos in China.

Category-wise Insights

Which Product Type Accounts for a Leading Cigar and Cigarillo Market Share?

“Affordability and Wide Range of Flavor Options Driving Demand for Cigarillos”

Attribute	Cigarillo
Market Value (2024E)	US$ 9.5 Billion
Growth Rate (2024 to 2034)	5.1% CAGR
Projected Value (2034F)	US$ 15.6 Billion

Cigarillos hold a larger market share compared to cigars and little cigars. However, despite cigarillos dominating the market due to their affordability and variety of flavor options, revenue from cigar sales is also increasing. This trend suggests a growing consumer interest in cigars, potentially driven by factors such as changing preferences, premiumization trends, and evolving marketing strategies by manufacturers.

While cigarillos maintain their popularity, increasing revenue from cigars indicates a notable segment of the market that is experiencing growth and demand, highlighting the diverse preferences among consumers.

Will There Be High Demand for Premium Cigars and Cigarillos?

“Unique Tastes and Craftsmanship Boosting Sales of Premium Cigars and Cigarillos”

Attribute	Premium
Market Value (2024E)	US$ 5 Billion
Growth Rate (2024 to 2034)	5.4% CAGR
Projected Value (2034F)	US$ 9 Billion

The growing preference for premium cigars and cigarillos comes from shifting client preferences for higher quality and more distinctive experiences. Consumers are increasingly prioritizing craftsmanship, authenticity, and elegance when it comes to smoking. Premium products feature outstanding mixes, sophisticated flavors, and accurate craftsmanship, catering to consumers seeking enhanced sensory delight.

Furthermore, they are usually regarded as symbols of luxury and grandeur, making them extremely desirable among collectors and enthusiasts. Furthermore, manufacturers' expanding marketing strategies highlight the exclusivity and uniqueness of premium items, which is stimulating consumer interest and driving the cigar and cigarillo market growth.

Competitive Landscape

Key players in the cigar and cigarillo industry are Gurkha Cigar Group, Fenn Thompson & Co. Royal Cigar Works, Scandinavian Tobacco Group A/S., Imperial Brands, Agio Cigars, Altria Group, Inc., Swisher International, Inc., Swedish Match AB, El Artista Cigars, Oettinger Davidoff AF, and Trendsettah USA, Inc.

• In January 2024, Gurkha Cigar Group, Inc. announced four new Year of the Dragon Cigars, each produced by a separate factory.
• The world's oldest cigars, which were recovered from a shipwreck in 1857, are now part of the J.C. Newman Cigar Factory Museum in Ybor City, Tampa.

Segmentation of Cigar and Cigarillo Market Research

• By Product :

  • Cigars
  • Cigarillos
  • Little Cigars

• By Price Range :

  • Premium
  • Mass

• By Flavor :

  • Fruit/ Candy
  • Mint/ Menthol
  • Chocolate

• By Sales Channel :

  • Direct Sales
  • Cigar Specialty Stores
  • Hypermarkets/ Supermarkets
  • Online Retailers
  • Other Sales Channels

• By Region :

  • North America
  • Europe
  • Latin America
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa