Cigar Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 53.75 Billion |
| Market Size (2029) | USD 88.28 Billion |
| CAGR (2024 - 2029) | 10.43 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Cigar Market Analysis
The Cigar Market size is estimated at USD 53.75 billion in 2024, and is expected to reach USD 88.28 billion by 2029, growing at a CAGR of 10.43% during the forecast period (2024-2029).
Increasing consumer inclination toward products complementing opulent lifestyles and the premiumization of cigars boost the cigar market globally. Rising disposable income, demand for premium products, and celebrity endorsements further drive the cigar market. As cigars are relatively expensive and specially handcrafted, they are considered a luxury product and are favored by high-income groups. Other factors propelling the cigar market include convenience and innovation. Chain stores with drive-through window outlets are gaining traction due to the convenience offered by such stores. Customers find these drive-through windows convenient, aiding in increasing cigar sales.
The emergence and promotion of cigar culture, including cigar lounges, clubs, and events, have increased customer interest in cigars. These spaces provide enthusiasts with a social environment to enjoy cigars, share experiences, and discuss the nuances of different cigar brands and varieties. In addition, companies are offering new packaging designs for cigars to attract consumers and increase their market share. For instance, in May 2024, Bond Roberts announced the launch of its own cigar brand called Bond Roberts Cigars. This release consists of two sizes, both made with a 鈥�109鈥�-style belicoso head: Petit 109, measuring 5 7/8 inches by 50 ring gauge, and 109, at 7 1/4 by 50. Furthermore, there has been a growing trend toward artisanal and premium products across various industries, including tobacco. Cigar enthusiasts frequently seek premium tobacco cigars that are crafted with precision. Such factors are driving the demand for cigar products worldwide.
Cigar Market Trends
Rising Income Levels and Consumer Spending on Social Smoking Clubs Are Fueling the Demand for Premium Cigars
The demand for premium cigars is fueled by the growing popularity of cigar lounges and social smoking clubs. The consumption of premium cigars, especially among the urban population, has increased as a result of the trend of socializing over an excellent cigar. Hand-rolled premium cigars are in high demand, with the exclusive tobacco leaves used as fillers that give them a better flavor profile. In addition, the careful selection and moisture retention of chopped tobacco leaves used in packaging ensure that they burn uniformly, resulting in a high level of satisfaction with smoking. Hand-rolled cigars are characterized by a sense of premium quality, with a significant emphasis placed on using 100% pure tobacco, a characteristic that cigar connoisseurs are very fond of.
According to the Centers for Disease Control and Prevention, in 2023, cigars were the third most commonly used tobacco product among US middle and high school students. Concerns were raised that these products may be particularly attractive to young people due to the availability of flavorings, such as cherry, which are prohibited in cigarettes, and the fact that they are commonly sold as a single stick. In addition, the global demand for premium flavored cigars from the student population increased. As of 2022, an estimated 8.8 million adults globally aged 18 and older (3.5%) smoked cigars.
Asia-Pacific Holds the Largest Market Share
In the Asia-Pacific market, the consumption of conventional cigars is higher compared to premium cigars due to the extremely high tax rates on premium cigars. The ban on e-cigarettes in developed parts of China, including Beijing, is the primary factor responsible for the growth of the country's cigar market. According to WHO, in 2022, there were more than 300 million smokers in China, nearly one-third of the world's total. The high tobacco production in Asian countries also drives the market for cigars across the region. Southeast countries such as Indonesia, the Philippines, and China are the major producers of cigars in the Asia-Pacific region.
India ranked behind China as the world's second-largest tobacco producer. According to WHO, as of 2023, tobacco was an important cash crop grown on 0.4 million hectares in the country, accounting for approximately 0.27% of the net cultivated area. The annual production was around 700 million kg, and the country ranked third globally in terms of production after China and Brazil. Several types of tobacco are made in the nation, including flue-cured Virginia tobacco, country tobacco, burley tobacco, bidi tobacco, Rustica tobacco, hookah tobacco, cigar-wrapped tobacco, cheroot tobacco, burley tobacco, oriental tobacco, and chewing tobacco.
Cigar Industry Overview
The cigar market is competitive, with the strong presence of regional as well as global players. Well-established companies with international brands have a higher penetration rate across retail shelves, primarily because of business expansion and a high consumer preference across developed and developing markets. Some major players in the market include Swisher International Group, Imperial Brands PLC, Philip Morris International Inc., China National Tobacco Corporation, and Altria Group Inc. The major companies are increasing their market share through innovations in their product portfolio. Companies compete based on different factors, including product offerings, quality, packaging, price, and different flavors, to gain a competitive advantage in the market.
Cigar Market Leaders
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Imperial Tobacco Group
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Swisher International Group Inc.
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Altria Group Inc.
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Scandinavian Tobacco Group AS
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Phillip Morris International
*Disclaimer: Major Players sorted in no particular order
Cigar Market News
- April 2024: E.P. Carrillo announced the launch of the two additional lines under the Encore brand, Encore Edicion Unica I and Encore Noir. 鈥淪olidarios鈥� under the Encore brand includes the Vitola of 56 x 6, pack of 10, which is uniquely designed by hand and long filler.
- April 2024: Altadis USA launched a limited edition of 2,000 single cigar boxes, Romeo Y Julieta 1875 鈥楻un for the Roses鈥� commemorative edition cigar, in the celebration of the 150th Kentucky Derby.
- March 2024: The CLE Cigar Company innovated its packaging for the core line of cigars in a 鈥渉alf wheel鈥� format within redesigned wooden boxes.
- November 2023: Drew Estate鈥檚 Chateau Real brand was exclusively made available at Drew Diplomat Digital retailers, and its products were packaged in 20-count boxes. Drew Estate launched this brand specifically for the Drew Diplomat online premium cigar retailers. The Drew Estate Chateau Real brand is claimed to be a luxurious blend of premium cigars crafted to highlight the cigar鈥檚 compelling Connecticut Shade-forward flavor.
Cigar Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Cigar as a Status Symbol
4.1.2 Premiumization & Product Differentiation Play a Key Role
4.2 Market Restraints
4.2.1 Stringent Government Regulations & Health Factors
4.2.2 Stiff Competition From Substitutes
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Conventional Cigar
5.1.2 Premium Cigar
5.2 Distribution Channel
5.2.1 Offline Retail Stores
5.2.2 Online Retail Stores
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 France
5.3.2.4 Russia
5.3.2.5 Spain
5.3.2.6 Italy
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 South Africa
5.3.5.2 Saudi Arabia
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Imperial Brands Inc.
6.3.2 Scandinavian Tobacco Group AS
6.3.3 Altria Group Inc.
6.3.4 Swisher International Inc.
6.3.5 China National Tobacco Corporation
6.3.6 Oettinger Davidoff AG
6.3.7 JC Newman Cigar Co.
6.3.8 Manifatture Sigaro Toscano SPA
6.3.9 Japan Tobacco Inc.
6.3.10 Philip Morris International Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Cigar Industry Segmentation
A cigar is defined as a roll of tobacco wrapped in leaf tobacco or in a substance that contains tobacco. Cigars differ from cigarettes in that cigarettes are rolls of tobacco wrapped in paper or in a substance that does not contain tobacco.
The cigar market is segmented by product type, distribution channel, and geography. The market is segmented by product type into conventional and premium cigars. The market is segmented by distribution channel into offline and online retail stores. By geography, the cigar market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. The market sizing has been done in value terms (USD) for all the above-mentioned segments.
| Product Type | |
| Conventional Cigar | |
| Premium Cigar |
| Distribution Channel | |
| Offline Retail Stores | |
| Online Retail Stores |
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Cigar Market Research FAQs
How big is the Cigar Market?
The Cigar Market size is expected to reach USD 53.75 billion in 2024 and grow at a CAGR of 10.43% to reach USD 88.28 billion by 2029.
What is the current Cigar Market size?
In 2024, the Cigar Market size is expected to reach USD 53.75 billion.
Who are the key players in Cigar Market?
Imperial Tobacco Group, Swisher International Group Inc., Altria Group Inc., Scandinavian Tobacco Group AS and Phillip Morris International are the major companies operating in the Cigar Market.
Which is the fastest growing region in Cigar Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Cigar Market?
In 2024, the North America accounts for the largest market share in Cigar Market.
What years does this Cigar Market cover, and what was the market size in 2023?
In 2023, the Cigar Market size was estimated at USD 48.14 billion. The report covers the Cigar Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Cigar Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What are the key factors driving the growth of the Cigar Market in emerging economies?
The key factors driving the growth of the Cigar Market in emerging economies are a) Rising disposable income b) Growing social gatherings
What are the key factors driving the growth of the Cigar Market in emerging economies?
The key factors driving the growth of the Cigar Market in emerging economies are a) Rising disposable income b) Growing social gatherings
Cigar Industry Report
The cigar industry is witnessing significant growth, fueled by a rising demand for luxury products among affluent consumers and a growing interest from younger demographics. This expansion is supported by the popularity of cigar lounges and clubs, offering a communal experience that attracts both seasoned aficionados and new smokers. Innovations such as flavored cigars are broadening the market's appeal, while the shift towards online retail channels allows manufacturers to reach a wider audience and improve sales margins. Despite challenges like stringent regulations and health concerns, the market thrives, especially in premium segments that offer high-quality, often handcrafted products. The future of the cigar industry looks promising, with opportunities for expansion into new regions and evolving consumer preferences. A closer look at cigar consumption by country reveals varied preferences and market dynamics, with key markets in North America, Europe, and emerging regions showing robust demand. The largest cigar companies are capitalizing on these trends through innovation and expanded distribution networks to meet the global demand for cigars. In terms of cigar industry worth, the market's value continues to ascend with an emphasis on premium and luxury segments. For detailed insights, 糖心vlog传媒鈩� offers a comprehensive analysis, including market share, size, revenue growth rate, and a forecast outlook, available as a free report PDF download.
