Data Analytics To Promote New Flavours Is Anticipated To Open Up The New Avenue For Cigars And Cigarillos Market

Cigars and cigarillos are made from tobacco which is rolled in tobacco leaves. These are traditionally consumed by smoking and come in various sizes, shapes and flavours. Regular cigars and cigarillos are flavoured with typical tobacco taste. However, innovations in flavours such as cocoa, wine and fruits have expanded the product portfolio to attract new consumers. Flavoured cigars and cigarillos are gaining popularity especially among young adults and women consumers.

The Cigars and Cigarillos Market is estimated to be valued at US$ 18.83 Bn or 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.

Market Dynamics:
Increasing disposable income and rising social acceptance: Changes in lifestyle and increasing disposable income, especially in developing regions have boosted the discretionary expenditure of consumers on vice products such as cigars and cigarillos. Further, declining social taboos have made their consumption more acceptable across various social classes. This is driving the growth of the global cigars and cigarillos market.
Growing focus on new experiences: Young consumers continuously seek new experiences related to food, drinks and vices. They are experimenting with exotic flavours in daily life activities to make their routines more interesting. This has prompted companies to innovate and offer new varieties of flavoured cigars and cigarillos to tap into the evolving preferences of young populations globally. The rising availability of diverse product portfolio is supporting the market expansion.
Segment Analysis
The cigars and cigarillos market is dominated by mass market cigars segment. This segment holds over 50% share of the total market owing to its affordable prices and availability at convenient stores. Mass market cigars appeal to both occasional and habitual smokers due to ease of availability and value pricing.

PEST Analysis
Political: The market is regulated by government through cigar advertising and manufacture restrictions. Many countries have banned tobacco advertising to curb consumption.
Economic: Rising disposable incomes in developing nations are driving the market growth. However, anti-smoking campaigns can negatively impact sales.
Social: Cigar smoking is considered prestigious in some cultures. However, rising health consciousness is reducing social acceptance of smoking.
Technological: Manufacturers are using technological innovations in cigar wrapping and blending to develop new flavor variants appealing to preferences of young customers.

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 hand-rolled cigars among high income groups. The North America region dominates the market owing to large consumer base and availability of wide range of premium cigar brands in the US. Key regional markets include Europe and Latin America.

Regional analysis - Latin America dominates the global market with over 30% share due to availability of premium Cuban cigars brands like Cohiba and Montecristo in markets like Mexico and Dominican Republic. The region exhibits higher per capita consumption compared to global average.

Key players operating in the cigars and cigarillos market include 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. Key players are investing in promotion of super premium cigar brands through exclusive events targeting high net worth individuals. Players also engage in strategic acquisitions to expand their regional footprint.
For more Insights, Read –