June 25, 2024

The Cigars Ahttps://www.newsstatix.com/cigars-and-cigarillos-market-market-size-and-share-analysis/nd Cigarillos Market Growing Demand

The cigars and cigarillos market consists of products containing tobacco rolled in leaf tobacco or containing an imitation leaf instead of tobacco. Cigars and cigarillos are smoked for pleasure or as recreational products. While cigarillos are smaller sized cigars, cigars are bigger in size and are available in multiple flavors and varieties. Cigars and cigarillos require lighting for smoking and do not contain a filter.

The Cigars and Cigarillos Market is estimated to be valued at US$ 18.83 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Premium varieties of cigars and cigarillos use high-quality tobacco leaves which provides a distinctive taste during smoking. Their availability in different flavors and varieties caters to changing consumer preferences.

Market key trends:
The growing male adult population with high disposable income is a major factor contributing to the growth of the cigars and cigarillos market. Surveys have indicated that around 30% of male population in developed regions such as North America and Europe consumes cigars or cigarillos on occasional basis. Moreover, increasing social acceptance of cigar smoking especially during occasions such as parties and corporate events has boosted their demand. The launch of new premium products incorporating organic and natural ingredients is another key trend witnessed in the market. Various companies are introducing organic cigars made from 100% natural wrapper and filler leaves to capitalize on the rising health consciousness among consumers. This is anticipated to drive the future growth of the global cigars and cigarillos market during the forecast period.

Porter’s Analysis

Threat of new entrants: The threat of new entrants is moderate as the cigars and cigarillos market requires substantial financial and marketing investments. However, new companies can enter the market by introducing unique varieties or flavors.

Bargaining power of buyers: The bargaining power of buyers is moderate as cigars and cigarillos have many substitutes like cigarettes and vaping products. However, loyal customers have less influence.

Bargaining power of suppliers: The bargaining power of suppliers is high as raw materials like tobacco are agricultural commodities and suppliers can influence prices.

Threat of new substitutes: The threat of new substitutes is high as alternatives like cigarettes and vaping products continuously emerge.

Competitive rivalry: Intense as major players compete on the basis of brand, variety, and pricing.

SWOT Analysis

Strengths: Established brand names, extensive distribution networks, innovation in varieties and flavors.

Weaknesses: Stringent regulations on advertising and promotion, perception of health risks associated with tobacco.

Opportunities: Emerging markets in developing countries, premiumization through exclusive hand-rolled variants.

Threats: Rising taxes and restrictions on usage, alternative nicotine delivery options gaining popularity.

Key Takeaways

The Global Cigars And Cigarillos Market Size is expected to witness high growth, exhibiting CAGR of 4.6% over the forecast period, due to increasing demand for premium tobacco varieties in emerging economies. The market size for 2023 is estimated to be US$ 18.83 Bn.

The North America cigars and cigarillos market currently dominates globally and is anticipated to grow at a steady pace during 2023-2030 owing to the large consumer base and availability of a wide variety of products in the region. The Asia Pacific region is projected to witness the fastest growth due to rising disposable incomes, emergence of luxury culture and increasing social acceptance of cigars in countries like China and India.

Key players operating in the cigars and cigarillos market are British American Tobacco, Imperial Brands, Plc., Altadis S.A., Habanos S.A., Drew Estate LLC, Swisher International, Inc., Oettinger Davidoff AG., Swedish Match AB, and Trendsettah USA, Inc. Major firms are focusing on expanding their geographic footprint and offering premium quality machine-rolled and handcrafted variants to attract new customers.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it