Cigar Market Size
| Study Period | 2018 - 2028 |
| Market Size (2023) | USD 48.55 Billion |
| Market Size (2028) | USD 79.91 Billion |
| CAGR (2023 - 2028) | 10.48 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Cigar Market Analysis
The Cigar Market size is expected to grow from USD 48.55 billion in 2023 to USD 79.91 billion by 2028, at a CAGR of 10.48% during the forecast period (2023-2028).
Increased consumer inclination toward products complementing opulent lifestyles, along with the rapidly growing premiumization of cigars, has been boosting the cigar market globally. In addition, government regulations related to tobacco and tobacco products influence and remain a key factor in driving the cigar market. For instance, the FDA requires premium cigar manufacturers and distributors to label their products with mandatory warning statements, similar to the wording already required on cigarette and tobacco packaging. These warnings must also be included in advertisements and marketing for premium cigars. However, companies have been offering new packaging designs for cigars to attract consumers and increase their market share. For instance, in February 2021, Oliva Cigars launched three Vitola Serie V in a new packaging design, which is a small box of three cigars that attractively displays these cigars in a smaller environment.
Rising disposable income, growing demand for premium products, and celebrity endorsements have been driving the cigar market in some regions. As cigars are relatively high in price and are especially handmade, they are considered a luxury product and are favored by high-income groups. Innovation and convenience factors are also driving the cigar market. For example, drive-through window chain stores for people who wish to remain in their vehicles while making a purchase. These drive-through windows make it convenient for customers, thus boosting cigar sales significantly.
Cigar Market Trends
This section covers the major market trends shaping the Cigar Market according to our research experts:
Continuous Increase in Smoking Rates and Organized Retail Penetration Driving the Market
As economic scenarios improve in developed countries like the United States, the appeal of the fine machine-made conventional cigar, a relatively affordable option among tobacco products, is expected to weaken, with many consumers likely to prefer premium cigars. Conventional cigar manufacturers are also conducting R&D activities to develop better tobacco quality and new flavors and are investing in improving packaging to enhance the aesthetic appeal. Most of the vendors are adopting online retail strategies to reduce costs and increase their margins, which is expected to benefit the market during the forecast period. Thus, with the growth of e-commerce and many retail stores broadening their offerings by introducing conventional and premium cigars and cigarillos, the market is likely to witness a faster adoption, resulting in healthy growth.
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 for premium cigars. The government bodies in regions like India do not differentiate between premium cigars, which are more of a luxury product, and other tobacco products, such as cigarettes and loose tobacco, which are addictive and harmful to human health. The ban on e-cigarettes in the developed parts of China, including Beijing, is the major factor responsible for the growth of the cigar market in the country. However, the higher prices discourage the youth from smoking cigars and cigarettes and encourage the current smokers to quit. The high production of tobacco in Asian countries also drives the market for cigars across the region. According to data published by the India Brand Equity Foundation (IBEF) in May 2022, India ranked behind China as the world's second-largest tobacco producer.
Around 0.45 million hectares of land in the nation are used for tobacco farming. In India, tobacco is grown on around 10% of the world's land, and it makes up 9% of the entire world's tobacco production. Around 800 million kg of tobacco crops were produced on average in India in the past five years. Several types of tobacco are produced 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. According to the Ministry of Commerce and Industry, India exported USD 923.22 million worth of tobacco in 2021-2022. Such factors, along with the availability of cheaper cigars, are likely to provide a competitive edge to the Asian markets over other regions, thus driving the market.
Cigar Industry Overview
The cigar market is highly consolidated and competitive, with the strong presence of regional and global players. Well-established companies with well-known brands have a higher penetration rate across retail shelves, mostly because of business expansion and a higher share of consumer preference across developed and developing markets. Some major players in the market include Swisher International Group, Imperial Brands PLC, Scandinavian Tobacco Group, and Altria Group Inc.
Cigar Market Leaders
Imperial Tobacco Group
Swedish Match AB
Swisher International Group Inc.
Scandinavian Tobacco Group
Altria Group Inc.
*Disclaimer: Major Players sorted in no particular order
Cigar Market News
- SEP 2022: Churchills announced the launch of its new range of cigars called "Chesa Veglia" in Phuket, scheduled to be held on November 4, 2022.
- OCT 2021: The Forged Cigar Company announced its plans to expand its coverage of the American market, according to a statement from Scandinavian Tobacco Group AS (STG). The company revealed its plans to grow its clientele with the opening of 6-8 additional superstores by 2022-2023.
- SEP 2021: The Villiger Group entered a joint venture with Joya De Nicaragua to open a new modern factory to increase the production of hand-rolled cigars. The company announced that opening a new factory would help it strengthen and expand its market position in the US market for luxury hand-rolled cigars.
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
4.2 Market Restraints
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 Strategies Adopted by Key Players
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Imperial Brands
6.3.2 Scandinavian Tobacco Group AS
6.3.3 Altria Group Inc.
6.3.4 Habanos SA
6.3.5 Swisher International Inc.
6.3.6 Swedish Match AB
6.3.7 Villiger Sohne AG
6.3.8 Burger Sohne Holding AG (Danneman)
6.3.9 Arnold Andre GmbH & Company KG
6.3.10 Holt's Cigar Company Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Cigar Industry Segmentation
A cigar is a bundle of dried and fermented tobacco leaves rolled into a cylindrical shape for smoking. The cigar market is segmented by product type, distribution channel, and geography. By product type, the market is segmented into conventional cigar and premium cigar. By distribution channel, the market is segmented into offline retail stores and online retail stores. By geography, the cigar market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million)
| 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 48,548.07 million in 2023 and grow at a CAGR of 10.48% to reach USD 79,908 million by 2028.
What is the current Cigar Market size?
In 2023, the Cigar Market size is expected to reach USD 48,548.07 million.
Who are the key players in Cigar Market?
Imperial Tobacco Group, Swedish Match AB, Swisher International Group Inc., Scandinavian Tobacco Group and Altria Group Inc. 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 (2023-2028).
Which region has the biggest share in Cigar Market?
In 2023, the North America accounts for the largest market share in the Cigar Market.
Cigar Industry Report
Statistics for the 2023 Cigar market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Cigar analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
