Cigar & Cigarillos Market Witness Significant Growth Of $21.02 Billion By 2025: Grand View Research, Inc.

Cigar & Cigarillos Market Witness Significant Growth Of $21.02 Billion By 2025: Grand View Research, Inc.

Grand View Research, Inc. – Market Research And Consulting.
According to report published by Grand View Research,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 cigar & cigarillos market growth.

According to a report,“Cigar & Cigarillos Market Size, Share & Trends Analysis Report By Product (Mass Cigar, Premium Cigar), By Flavor (Tobacco/No Flavor, Flavored), By Region, And Segment Forecasts, 2019 – 2025”, published by Grand View Research, Inc., The global cigar and cigarillos market size is expected to reach USD 21.02 billion by 2025, 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.

Key Takeaways from the report:

  • 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.

U.S. cigar & cigarillos market size, by product, 2015 - 2025 (USD Billion)

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Global cigar & cigarillos market share, by region, 2018 (%)

Regional Insights

North America held the largest market share in 2018, attributed to the growing demand for premium cigars from luxury hotels and bars in U.S. According to the Cigar Association of America, about 330 million sticks were shipped to U.S., in 2017, making it the biggest import year in nearly two decades.

Nicaragua led the import market and was the largest exporter of premium cigars for two consecutive years, beating the Dominican Republic once again. Increased import from Nicaragua was due the love for unique taste of Nicaragua tobacco among the U.S. consumers. However, stringent rules and norm by the U.S. Food and Drug Administration (FDA) for the launch of new products coupled with the heavy taxation by the U.S. government is expected to restrain the growth in near future.
Europe is expected to expand at a CAGR of 1.9% over the forecast period. Increasing preference by women is projected to drive the regional market. Increasing number of female smokers in the countries like Poland and Russia is expected to boost the demand in Europe. Furthermore, increasing taxation on cigarette, their bad reputation coupled with increased prices has led to a shift in consumer preference in the region.

Asia Pacific is expected to register a CAGR of 8.9% over the forecast period. The demand for Cuban cigar is growing in the region. China was the largest regional market and held 48.35% share of Asia Pacific cigar and cigarillos market. Cigar is considered as a luxury product to accompany drinks and meals. The moments of meal with the family and friends is considered vital in the Chinese tradition and people organize ceremonial meals for celebrating important occasions. This time is considered appropriate in the country to share drinks and cigars with the family, friends, and co-workers, which in turn has led to a rise in demand from China.

Cigar & Cigarillos Market Share Insights

The global market is getting more and more diversified with the availability of products in all the range and flavors. The top most competitors are Nicaragua, the Dominican Republic, Honduras, and Brazil. In recent days various verities are launch by the manufactures to gain greater market share. Many regional and domestic players are entering into the market with a unique and innovative products to gain customer base. Recently, in Europe, Switzerland entered into cigar manufacturing and Swiss brand “Davidoff” which is gaining popularity as a brand with unique quality of the product. Moreover, Nicaragua innovated organic cigar with a brand name “Plasencia”, which is expected to gain popularity in Asia, especially in the China.

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About Grad View Research, Inc.

Grand View Research provides syndicated as well as customized research reports and consulting services on 46 industries across 25 major countries worldwide. This U.S.-based market research and consulting company is registered in California and headquartered in San Francisco. Comprising over 425 analysts and consultants, the company adds 1200+ market research reports to its extensive database each year. Supported by an interactive market intelligence platform, the team at Grand View Research guides Fortune 500 companies and prominent academic institutes in comprehending the global and regional business environment and carefully identifying future opportunities.

For more information: www.grandviewresearch.com

 

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