Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Cigars & Cigarillos Market 2017 – 2027
Cigars & Cigarillos are rolled tobacco that is wrapped in leaf tobacco and is different from cigarettes. Cigarillos, cigars, and little cigars are the three major types of cigars that are available in the market. Cigar usage is higher among young adults who use tobacco products. These products are also available in different flavors such as mint/menthol, fruit/candy, and chocolate. Cigars & Cigarillos are machine-made products and involve herbal and botanical infusion. However, hand-made cigars are available in the market.
The global cigars & cigarillos market is estimated to account for US$ 25.2 billion in terms of revenue, growing at a CAGR of 3.0% during the forecast period (2019-2027)
The rising number of cigar and cigarillo smokers around the globe owing to peer pressure and changing life-style is primarily fueling the market growth of cigar and cigarillo. U.S. Department of Health & Human Services, in 2016, nearly 40 million adults in U.S., still smoke cigarettes, and about 4.7 million middle and high school students use at least one tobacco product, including e-cigarettes. Hence, the rising consumption of cigar products is expected to propel the market growth of cigar and cigarillo over the forecast period.
The increasing number of cigar parlor and lounge, especially in countries in the developed countries is expected to fuel the growth of the market growth in the near future. According to the Coherent Market Insights, in the U.S., Chicago is fast becoming increasingly popular for cigar parlors. Biggs Cigar Emporium, Jack Schwartz, and TESA Cigar Co. are among some of the popular cigar parlors in Chicago. Therefore, the rising number of cigar parlor around the globe is propelling market growth.
North America region dominated the global cigars & cigarillos market in 2018, accounting for 39.7% share in terms of volume, followed by Europe and Latin America, respectively
Figure 1. Global Cigars & Cigarillos Market, Revenue Share (%), By Region, 2018
The high cost of cigars and cigarillos than other tobacco products is expected to hinder the market growth over the forecast period. For example, according to the Coherent Market Insights, the retail cost of a box of five premium cigars varies between US$ 120 to over US$ 230. Thus, the availability of other alternative tobacco products such as cigarettes and chewing tobacco at lower prices is projected to restrict the market growth of Cigars and cigarillos.
Rising awareness regarding the healthy lifestyle among consumers is expected to restrict the adoption of such products, which in turn, hindering the market growth. Also, various governments around the globe are spreading awareness regarding the adverse effects of smoking. For instance, government across various countries has banned smoking in public areas, these factors are expected to limit the market growth of Cigars and cigarillos over the forecast period.
Expanding distribution channel for easy availability of cigars and cigarillos to the consumer is expected to show lucrative growth opportunities in the near future. For instance, in January 2017, RICH Cigars, Inc., a manufacturer of high-quality premium cigar products, proudly announced, that the Company has begun an effort to expand its market by achieving various State approvals to broaden its ability to directly wholesale to retailers the RICH brand’s core line of cigars. This factor is expected to propel the market growth.
Increasing Women’s Preferences for Cigars & Cigarillos products around the globe is projected to foster the market growth of Cigars & Cigarillos over the forecast period. Growing demand for cigar brand especially for women is encouraging the manufacturer to introduce premium cigar, this factor is further projected to propel the market growth of Cigars & Cigarillos over the forecast period. For instance, in June 2019, El Septimo Geneva SA, a La Grande Maison Younan Collection company, has introduced the Alexandra Collection: a new line of cigars designed exclusively for women.
Figure 2. Global Cigars & Cigarillos – Market Opportunity Analysis
Market Trends/Key Takeaways
The rising launch of innovation in cigar products is expected to augment the market growth of Cigars & Cigarillos over the forecast period. For instance, in July 2019, Habanos, S.A., through its exclusive distributor for Switzerland, Intertabak AG, will launch in world premiere the new cigar band of the Punch brand, Short de Punch (clamp or diameter of 5 per 120 millimeters long). The Punch brand of cigars incorporates for the first time the 50 Clamp in its portfolio, thus expanding the exquisite flavor of the brand.
An increasing the number of collaboration among new players in the market in order to meet the rising demand for a cigar is expected to accelerate the market growth over the forecast period. For instance, in June 2019, European company Royal Agio Cigars has collaborated with cigarmaker Litto Gomez of La Flor Dominicana fame for a new brand that will be showcased at Royal Agio’s booth during the upcoming trade show: the Balmoral Paso Doble. The new cigar is made at Gomez’s Tabacalera La Flor S.A. factory in the Dominican Republic and combines tobaccos from the inventories of both Gomez and Royal Agio.
The Tobacco Products Labeling (TPLR-CLC) Regulations came into force in September 2011. The TPLR-CLC requires a health warning on at least 75% of the front and back panels, a qualitative toxic emissions statement on a side panel, and a health information message to be included either on the upper slide-flap, the exterior surface of the slide, or on a leaflet inserted in the package.
On the basis of product type, in 2018, cigarillo segment, accounted the largest market share of 77.6% in terms of revenue, followed by Cigar and Little Cigar, respectively.
Figure 3. Global Cigars & Cigarillos Market, Revenue Share (%), By Product Type, in 2018
Key players active in the global cigars & 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
Few Recent Developments
Scandinavian Tobacco Group A/S
- In September 2019, Scandinavian Tobacco Group has today agreed on the terms and conditions for the acquisition of all of the shares of Agio Beheer B.V. from Highlands Beheer B.V. Agio Beheer B.V. is the holding company of the Royal Agio Cigars group of companies