Luxury Cigars Market
Luxury Cigars Market Analysis, By Flavour (Unflavored, Flavoured), By shape (Parejo Cigars (Parejo, Box-Pressed, Culebra), Figurado (Torpedo, Belicoso, Piramide, Perfecto, Chisel)), and Region - Global Market Insights 2023 to 2033
Analysis of Luxury Cigars market covering 30+ Countries Including Analysis Of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
Luxury Cigars Market Outlook (2023-2033)
The global luxury cigars market is estimated at US$ 4.7 billion in 2023 and is forecast to reach US$ 9.7 billion by 2033, growing briskly at a CAGR of 7.3% from 2023 to 2033.
Breaking the experience paradigm coupled with the mainstream utilization of cigars among commoners are crucial factors driving market growth. Luxury cigars will account for 35% share of total cigar sales by 2033, a whopping increase of 7% from 2023.
According to this recent industry analysis by Fact.MR, a market research and competitive intelligence provider, luxury cigar sales witnessed a growth rate of 3.9% over the past four years. This was mainly due to the increasing disposable income of the population and changing standards of living.
Luxury cigars are handmade cigars made by expert cigar rollers with years of experience and are the result of artisanship. Luxury cigars consist of 100% long tobacco leaves as a wrapper and do not contain paper, preservatives, and harmful chemicals. They do not use a filter, tip, or mouthpiece, and are usually heavier and larger. Particular premium cigars have distinct aromas and taste due to the fermenting, blending, and aging of tobacco without adding flavours or additives.
Cigar makers continue to experience strong demand for luxury cigars and retailers also say sales remain strong, with cigar sales in 2021 reportedly being the best in the last 25 years. Luxury cigars are also growing in popularity among young consumers due to strengthening online sales. Key suppliers of luxury cigars are expanding their online distribution channels and collaborating with prominent online cigar websites to strengthen the sales growth. Sales of luxury cigars are anticipated to create an absolute $ opportunity of US$ 2.8 billion over the forecast period.
Brands are breaking the perimeters of affluence and experience and adopting non-traditional marketing mechanisms with the aim of captivating new customer archetypes such as students, travelers, and tourists.
- Increasing consumption of tobacco among millennials to drive the sales of luxury cigars.
- Expansion of brand-owned distribution and sales channels, especially online channels, will increase the sales of luxury cigars.
- Diversification into non-conventional cigars such as flavored luxury cigars and new shapes to appeal to different customers will drive long-term market growth.
Luxury Cigars Market Size (2022A)
US$ 4.5 Billion
Estimated Market Value (2023E)
US$ 4.7 Billion
Forecasted Market Value (2033F)
US$ 9.7 Billion
Global Market Growth Rate (2023-2033)
North America Market Share (2023)
Europe Market Value (US$ Million), 2023
US$ 735.5 Million
China Market Share (%), 2023
Top 3 Countries’ Market Share (%)
Key Companies Profiled
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Why are Luxury Cigars Gaining Ground in the Overall Cigar Market?
“Rising Number of Cigar Lounges Driving Market Growth”
Due to stringent anti-smoking regulations around the world, many establishments have opened cigar lounges. With dozens of cigar lounges opening in the last year and many more in the planning, the trend of cigar lounges has taken off in the United States. Luxury cigar manufacturers will profit as disposable income rises and consumers are able to spend more on premium cigars offered in cigar lounges.
From Los Angeles to Washington D.C. and Denver to Miami, luxury cigar lounges are becoming the social outlets of choice for cigar enthusiasts across the United States.
- For instance, the Resorts World luxury hotel chain opened a cigar lounge - Eight Cigar Lounge - last year with a wide selection of over 150 cigars.
“Online Distribution Channels Boosting Luxury Cigar Sales”
Due to rising Internet usage and consumers' increased propensity for mobile purchasing, major luxury cigar manufacturers are rapidly developing e-Commerce websites in lucrative regional markets to enhance their sales.
- For instance, Scandinavian Tobacco Group has its own online cigar distribution channel - Cigar International and Holt’s Cigar Company.
- A leading online retailer of luxury cigars owns the Ashton brand of premium cigars.
Online cigar sales have substantially changed people's shopping habits, which provide the benefits of discounted prices, easy availability, simple payment options, no waiting time, and the availability of a wide variety of luxury cigars from different brands. Post-pandemic, more people are opting to buy cigars online due to the convenience factor and no-contact purchase. These advantages of online distribution channels are expected to propel the demand for luxury cigars over the coming years.
What Concerns Do Luxury Cigar Manufacturers Have?
“Price Hike of Luxury Cigars to Hit Market Progress”
- Leading luxury cigar manufacturer Habanos S.A, in May 2022, announced a price hike in its Cuban cigars with the bestselling luxury cigars Cohiba and Trinidad having the biggest price increase. Habanos cited the imbalance between supply and demand as the key reason for this price hike.
- Key player Arturo Fuente also announced a price hike of 4%-8% to cater to farming, processing, and manufacturing costs in the Dominican Republic.
Other prominent manufacturers of handmade cigars such as Ashton Distributors, J.C Newman, Oliva Cigars, and Rocky Patel Premium Cigars also announced similar price hikes. These increased prices will push a large percentage of luxury cigar enthusiasts to shift from hand-rolled cigars to machine-made cigars, affecting overall market growth.
Market share analysis of luxury cigars based on flavor and region. Under the flavor segment, unflavored luxury cigars dominate with 67.9% market share in 2023.
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Country Wise Analysis
Why is the United States a Huge Market for Luxury Cigars?
The U.S. continues to remain a dominant market for luxury cigars.
- As per the Centers for Disease Control and Prevention, 3.5% of adults smoke cigars accounting for 8.6 million cigar-smoking people.
- According to the Cigar Association of America (CAA), over 420 million premium cigars were imported to the U.S. in 2021 during the first eleven months, a 33.5% increase as compared to 2020.
The U.S. reported record sales of luxury cigars in 2021, with total volume sales exceeding 450 million units. Even under the prevailing ban on Cuban Cigars due to the trade embargo between the U.S. and Cuba, the U.S. has shown a record growth in luxury cigar imports in the post-Cigar Aficionado magazine era.
The U.S. represents 91.2% of the North American market share and 60.1% of the global market share in 2023 and is expected to reach a market valuation of US$ 2.8 billion in 2023.
How are Sales of Luxury Cigars Shaping Up in China?
China became the world’s biggest market for Cuban cigars with a rise in sales by 15%. Even with the official distribution of cigars limited to less than 10 stores in China, the cigar market has grown more than 50% in the past six years. Sales of luxury goods in China increased by 36% in 2021 accounting for US$ 73.6 billion, and cigars, the epitome of luxury goods and an external symbol of prosperity, were not exempt from the post-COVID buying frenzy.
The market in China is predicted to grow at a CAGR of 8.4% because of these factors. Growing number of cigar manufacturers that are attaining control over the market would aid regional market growth. China is expected to reach a market valuation of US$ 470 million by the end of the forecast period.
Category wise Insight
Why are Unflavored Luxury Cigars the Focus of Manufacturers?
Revenue generated from unflavored luxury cigars is expected to increase at 8.1% CAGR during the forecast period.
More cigar enthusiasts around the world choose unflavored cigars as flavored cigars detract from the natural taste and flavor of tobacco. Also, the recent ban by the FDA on flavored cigars as part of an effort to ban menthol cigarettes will favor the demand growth for unflavored cigars.
In 2023, unflavored luxury cigars are predicted to hold a higher market share of 67.9% and reach a market value of US$ 3.2 billion.
What Makes Parejo Luxury Cigars So Popular?
Parejo cigars by shape are predicted to account for a market value of US$ 2 billion in 2023 and capture 61.2% of the demand pie, surpassing box-pressed and culebra shapes.
A Parejo is a traditional cigar format with a flat head and consistent ring gauge from head to foot. Most smokers prefer Parejo over figarudo and box-pressed as it is more comfortable to hold in the hand and mouth. Also, box-pressed cigars have a stronger flavor, which is not enjoyed by a majority of cigar smokers.
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Prominent manufacturers of luxury cigars are Alec Bradley, Arturo Fuente, Ashton Cigars, Drew Estate, Gran Habano Cigars, Habanos S.A. (Altadis USA Inc), JC Newman, Joya de Nicaragua, My Father Cigars, Oettinger Davidoff AG, Oliva Cigars Co (Acquired by J. Cortes Cigars), Padron Cigars (Piloto Cigars), Perdomo Cigar, Plasencia Cigars, Rocky Patel Premium Cigars, Scandinavian Tobacco Group, Tabacalera AJ Fernandez Cigars, and Villiger Sohne AG.
Key players are persistently launching new cigars and acquiring other prominent cigar brands and together launching new handmade cigars. New players are also entering the market and launching their luxury cigar lines, especially those who are prominent in the machine-made cigar business.
- In September 2022, Patriotic Cigar Company launched its brand featuring custom-designed handmade cigars from Nicaragua.
- Plasencia Cigars, in June 2022, announced that its hand-rolled cigars, Plasencia Alma Fuerte Colorado Claro, will be offered in Toro Box Pressed 6 1/4 x 54, in the name Eduardo I.
Fact.MR has provided detailed information about the price points of key manufacturers of luxury cigars positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.
Segmentation of Luxury Cigars Industry Research
By Flavor :
By Shape :
- Parejo Cigars
- Figurado Cigars
- Parejo Cigars
By Region :
- North America
- Latin America
- East Asia
- South Asia & Oceania
- FAQs -
The global market for luxury cigars is estimated to reach a valuation of US$ 4.7 billion in 2023.
The unflavored luxury cigars segment is likely to reach US$ 3.2 billion in 2023.
North America leads the global market accounting for 66% share in 2023.
Parejo luxury cigars will account for the highest market share of 61.2% in 2023.
Demand for flavored cigars is expected to increase at a CAGR of 5.4% during the forecast period.
Torpedo cigars are likely to offer great growth prospects with a market valuation of US$ 944.7 million by 2033.
Box pressed cigars are expected to hold a market share of 27.1% by 2023.