Luxury Cigar Market Size was valued at USD 11.6 Billion in 2022. The Luxury Cigar market industry is projected to grow from USD 12.5 Billion in 2023 to USD 22.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.50% during the forecast period (2023 - 2032). An increase in the number of luxury hotels with premium cigar lounges and a surge in tobacco use among millennials, are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Over the course of the projection period, a surge in high-end hotel facilities with premium cigar lounges is anticipated to positively affect market expansion. Furthermore, it is projected that millennials' rising cigarette use will accelerate market expansion. The tobacco business has suffered as a result of the COVID-19 pandemic. Global sales dropped by 20%–30% from March to April 2020 as a result of factories and stores closing as a result of severe lockdown regulations. Businesses have been favourably responding to the situation by providing upscale cigars online, since consumers preferred online purchase over offline due to security concerns.
The demand for luxury cigars is rising, particularly among millennials and high-end smokers. According to a USDA study, cigar sales in the United States brought in USD 28.48 per person in 2019 and USD 30 in 2020. The emergence of numerous high-end cigar lounges throughout the world in recent years has increased demand for luxury cigars, which are mostly smoked at high-end lounges.
According to a study by Cigar Journal, there were more than 4,553 cigar lounges open in the United States as of 2020, and this number is anticipated to grow in the years to come due primarily to a rise in the social acceptance of smoking and a rise in consumer preference for cigars with a smoother taste. Furthermore, cigarette consumption has increased significantly year after year all throughout the world. According to a World Health Organisation report, the number of men who smoke increased to over 40 million from 1.05 billion in 2000 to 1.09 billion in 2018. The study also showed that despite the global goal of more than 32 countries to reduce tobacco consumption by 30% by 2025, based on current efforts, only a reduction of 23% could be accomplished, highlighting the sharp increase in cigarette usage. Thus, one of the key reasons influencing the demand for premium cigars is the increase in tobacco usage.
Future market expansion for luxury cigars is anticipated to be driven by millennials' rising tobacco consumption. The chemical nicotine, which makes individuals feel good while diverting their attention from bad thoughts, is to blame for the surge in tobacco consumption among younger wealthy adults, which in turn raises the market for high-end cigars. For instance, wholesalers and retail chains sold 203.7 billion cigarettes overall in 2020, up from 202.9 billion in 2019, according to the Federal Trade Commission 2021, a US federal body. The market for luxury cigars is therefore driven by millennials' rising tobacco use. In the market for luxury cigars, technological developments have become a prominent trend that is growing in popularity. To strengthen their position, major businesses in the luxury cigar industry are concentrating on creating new technological solutions. Thus, driving the Luxury Cigar market revenue.
The Luxury Cigar Market segmentation, based on Type, includes hand rolled and machine rolled. Hand rolled segment accounted for the largest revenue share in 2022. Due to their considerably greater quality, hand-rolled cigars are more popular among premium smokers than machine-rolled cigars. Pure tobacco leaves are used only as the filler in high-end hand-rolled cigars, which results in a better flavour.
The Luxury Cigar Market segmentation, based on Distribution Channel, includes online and offline. Offline segment dominated the Luxury Cigar Market in 2022. Smoke shops, hypermarkets, and businesses selling expensive cigars are reopening as lockdown restrictions are being lifted across the globe. As the number of immunised consumers rises and the threat of COVID-19 declines, it is projected that this will gradually grow the in-store customer base. Furthermore, the expansion of premium cigar lounges into upscale hotels in nations like the U.S., Canada, and the U.K. can be linked to the expansion of this market segment.
Figure 1: Luxury Cigar Market, by Distribution Channel, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North America Luxury Cigar Market dominated this market in 2022 (45.80%). Customers in North American nations like the U.S. and Canada are prepared to spend a lot of money on unusual premium cigars. Another element that is anticipated to support demand is the existence of reputable luxury cigar producers in North America, such as Rocky Patel Davidoff of Geneva and Altadis USA. Further, the U.S. Luxury Cigar market held the largest market share, and the Canada Luxury Cigar market was the fastest growing market in the North America region.
Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: LUXURY CIGAR MARKET SHARE BY REGION 2022 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Luxury Cigar market accounted for the healthy market share in 2022. It is anticipated that the expansion of the tobacco sector in Germany and the United Kingdom, both of which enjoy legislative support, will guarantee ongoing production of luxury cigars and, as a result, be a favourable factor for the market growth in the Asia Pacific over the forecast period. Further, the German Luxury Cigar market held the largest market share, and the U.K Luxury Cigar market was the fastest growing market in the European region
The Asia Pacific Luxury Cigar market is expected to register significant growth from 2023 to 2032. The majority of smokers worldwide are concentrated in Asia and the Pacific. According to a World Health Organisation report, Chinese smokers made up more than 25.0% of the world's smokers as of 2020. Moreover, China’s Luxury Cigar market held the largest market share, and the Indian Luxury Cigar market was the fastest growing market in the Asia-Pacific region.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Luxury Cigar market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Luxury Cigar industry must offer cost-effective items.
Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the global Luxury Cigar industry to benefit clients and increase the market sector. In recent years, the Luxury Cigar industry has offered some of the most significant advantages to medicine. Major players in the Luxury Cigar market, including Fuente Marketing Ltd., General Cigar, Regius Cigars Ltd., Gurkha Cigar Group, Gran Habano Cigars, Mayan Import, The Villiger Group, Altadis, Rocky Patel Premium Cigars, and Swisher, are attempting to increase market demand by investing in research and development operations.
A company called HumidifGroup specialises in creating packaging and accessories for the cigar industry. Our group has developed what we consider a specialised diversification after more than 30 years in the market. The variety of products and materials available to us allows us to create a wide range of customised articles for our customers. ensuring that all of client requirements are met, thereby producing a unique product that is especially tailored for them. A US-based firm called HumidifGroup USA, which specialises in the creation and design of packaging and accessories for the cigar industry, introduced Ferio Tego Cigar Co. in September 2021 using smart packaging technology. Smart packaging immerses the end-user in knowledge, stylish films, and education with only a swipe of the phone.
The Scandinavian Tobacco Group A/S (STG) manufactures traditional pipe tobacco and cigars. It sells pipe tobacco, handmade cigars, cigars created by machines, fine-cut tobacco, CMA cigars, fire accessories, tubes, and paper. Under the names Cao, Captain Black, Cohiba, Erinmore, Escort, Hajenius, Henri Wintermans, La Gloria Cubana, LA Paz, M BY Colts, Panter, Partagas, Petit, Signature, and Tiedemanns, the company sells tobacco goods. Tobacco products are distributed by STG to wholesalers and distributors via sales offices. Operating regions for the company include the Americas, Oceania, Asia-Pacific, Europe, and Africa. Denmark's Gentofte serves as the home base for STG. Moderno Orifice del Sigaro Italiano (MOSI) was acquired by Scandinavian Tobacco Group A/S, a manufacturer of cigars and traditional pipe tobacco with headquarters in Denmark, in November 2021 for an unknown sum. With this acquisition, the business increases its market share in the machine-rolled cigar market in Italy and strengthens its position as the industry leader in Europe. Machine-rolled cigars are created by the Italian company Moderno Orifice del Sigaro Italiano (MOSI).
Luxury Cigar Industry Developments
September 2021: The Villiger Group and Joya De Nicaragua entered into a joint venture to open a new chic facility and increase hand-rolled cigar production. The business claimed that by enlarging a recently constructed plant, they would sustain and expand their market for high-end hand-rolled cigars in the American market.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 11.6 Billion |
| Market Size 2023 | USD 12.5 Billion |
| Market Size 2032 | USD 22.2 Billion |
| Compound Annual Growth Rate (CAGR) | 7.50% (2023-2032) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Distribution Channel, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, U.K, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Fuente Marketing Ltd., General Cigar, Regius Cigars Ltd., Gurkha Cigar Group, Gran Habano Cigars, Mayan Import, The Villiger Group, Altadis, Rocky Patel Premium Cigars, and Swisher |
| Key Market Opportunities | Influence of western culture |
| Key Market Dynamics | A rise in luxury hotel establishments that comprise premium cigar lounges and the increasing consumption of tobacco among millennials |
Frequently Asked Questions (FAQ) :
Luxury Cigar Market size was valued at USD 11.6 Billion in 2022.
The global market is projected to grow at a CAGR of 7.50% during the forecast period, 2023-2032.
North America had the largest share in the global market
The key players in the market are Fuente Marketing Ltd., General Cigar, Regius Cigars Ltd., Gurkha Cigar Group, Gran Habano Cigars, Mayan Import, The Villiger Group, Altadis, Rocky Patel Premium Cigars, and Swisher
The Hand Rolled Type dominated the market in 2022.
The Offline Distribution Channel had the largest share in the global market.
Assistant Manager - Research High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. by implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in packaging, construction, and equipment domains. she handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.
Get in Touch
© 2024 Market Research Future ® (Part of WantStats Reasearch And Media Pvt. Ltd.)
