The Global Market for Cigars is Projected to Reach 20.1 Billion Sticks by 2024

Rising Demand from Emerging Markets to Drive the Global Cigars Market, According to a New Report by Global Industry Analysts, Inc.

GIA launches comprehensive analysis of industry segments, trends, growth drivers, market size, share and demand forecasts on the global Cigars market. The global market for Cigars is projected to reach 20.1 billion sticks by 2024, driven by the growing penchant for cigars in emerging markets such as China, and product innovations.    

Cigars represent a small segment in the global tobacco products market, with demand tied to multitude of factors such as existence of cigar smoking culture, economic environment, and regulatory hurdles among others. Diversity in consumption trends typify the current states of the cigars market worldwide with consumption saturating or declining in traditional markets with strong cigar smoking tradition, while rising in emerging markets with a low volume base. As such, the global cigars market operates in an environment laced with favorable and unfavorable factors. While awareness campaigns and restrictions on places where smoking is allowed alongside higher taxes are negatively impacting the market across the globe, especially in established markets, laxity in implementation of regulations and increasing westernization of lifestyles in select emerging markets and product innovations are buoying market growth.

Cigarillos represent the major driver of demand for cigars worldwide, owing to their lower cost, and shift towards cigars from cigarettes in the backdrop of growing prices of the latter. Demand for small cigars and cigarillos is on the rise on account of better economic climate, which is also benefiting from the growing focus on mass market strategies of cigar manufacturers with an eye on profits. Continued loyalty and premiumization of cigars in certain markets is driving demand for conventional large and premium cigars. Market growth is increasingly driven by product innovations, with manufacturers striving to enhance cigars appeal to a wider consumer section with the introduction of flavored cigars, such as fruit and chocolate, targeting the young adults and youth segments. Premiumization in certain geographies and increasing emphasis on factors such as exclusiveness and superior quality are driving demand for premium cigars in certain markets. Major hurdles to growth include ever-changing regulatory environment and continue increase in taxes on tobacco products alongside growing health awareness. 

As stated by the new market research report on Cigars, the U.S. represents the largest market worldwide. A strong tradition of smoking cigars, presence of major brands, relative immunity from some restrictions on other tobacco products and product innovations fostered positive growth in sales of cigars and cigarillos in the US. However, Asia-Pacific represents the fastest growing market worldwide, with a CAGR of 12.6% through the analysis period. Demand across the region is fueled by increasing incomes, westernization of lifestyle and laxity in implementation of ant-smoking regulations.

Major players in the market include Agio Cigars, Altadis SA, Dannemann Cigarenfabrik GmbH, Habanos SA Corporation, John Middleton Co., Swedish Match, Scandinavian Tobacco Group and Swisher International, Inc. among others. 

The research report titled “Cigars: A Global Strategic Business Report” announced by Global Industry Analysts Inc., provides a comprehensive review of market trends, issues, drivers, mergers, acquisitions and other strategic industry activities of global companies. The report provides market estimates and projections for Cigars in volume terms for all major geographic markets such as United States, Canada, Japan, Europe (France, Germany, Italy, UK, Spain, Russia and Rest of Europe), Asia-Pacific (Australia, China and Rest of Asia-Pacific), Latin America and Rest of World.

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