Market Overview:

Global Luxury Cigar Market size was estimated at USD 14.3 billion in 2023 and is anticipated to grow at a CAGR of 7.2% from 2024 to 2032 according to a new report by IMIR Market Research.

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Market Dynamics:

Market Drivers-

Increasing Cigar Culture and Lifestyle Trends to Boost Market Growth

• The Way of life patterns will, in the end, be changing and cause the development of cigar culture and lead to the Luxury Cigar Market growth. Cigars somehow encapsulates complexity and relaxation, a low-key symbol of status and prestige. Sometimes, ads on social media and celebrity endorsements gave a new boost to cigar consumption, particularly among the youth. On the other hand, industry is likely to benefit from the formation of new markets and globalization, which is going to promote industry’s growth.
• The growth of tourism and experiential luxury is very likely to have an impact on how people travel and what they expect from tours. However, with the increasing number of tourists, primarily those who vacation in the areas of the world known for their cigar cultures, luxury cigars become more and more in-demand products. The picking of superior tobacco leaves and those aging methods employed by cigar product producers serve as the trigger which supports the luxury Cigar market size and share.

Consumer Growing Preference for Premium Products and Increasing Disposable Income to Influence the Market

• The wealth base of consumers growing along with the growing disposable income is the main fuel for the Luxury Cigar Market. The increasing portion of income which people spend on premium products and experiences will help the export growth of luxury cigars. Rising disposable income per individual enabling consumers to pay the premium prices attached to luxury cigars contributes to an increasing sales volume. There is a remarkable and passionate movement for superior and high-quality products among the consumers and thus of the cigar market too. The top-notch smoking experience delivers superior flavour, aroma and artistry which is evident from the cigars. Consumers are looking for more indulgence and unique “high-end” experiences, resulting in a growing interest in luxury cigars.

Market Trends-

A Rise in Luxury Hotel Establishments that Comprise Premium Cigar Lounges is Driving the Market Growth

• During the forecast period, there will be an increase in top-notch hotel facilities with plush cigar lounges, creating a positive effect in the market progress. Another point is that the cigarette market is likely to grow faster due to the increasing prevalence of smoking among the millennials. The tobacco industry has been one of the business sectors hard hit by the COVID-19 pandemic. Global sales slumped by 20%–30% from March to April 2020 as production and stores shut down as a result of overwhelming lockdown rules and restrictions. Companies have been facing the situation well by selling their best cigars online targeting the e-shopping consumers since those ones preferred online purchase security over offline. The need for deluxe cigars is increasing, moreover, among millenniums and wealthy smokers. As per research done by USDA in 2019, a singular individual brought in about USD 28.48 in the cigarette sale and USD 30 in the 2020. In the last few years, the number of grades of cigars has increased, and in many countries, people smoke them in luxurious cigar lounges. A poll conducted by Cigar Journal established that there were more than 4,553 cigar lounges in the United States in 2020, and this number is expected to continue growing in the coming years because of a rise in public approval of smoking and more demand for cigars with a smoother flavour. Also, cigarette consumption has also exceeded expected in the past years across the globe. The Organisation of Health World mentioned in its report that the number of men who smoke had grown to well over 40 million from 1.05 billion in 2000 to 1.09 billion in 2018. It appeared from the study that, even though more than 32 countries made the pledge to cut the overall tobacco consumption by 30% by the end of 2025, the current rate of the cigarette use increase was much more rapid than the 23% reduction, though. Hence, premium cigars market, demand is divided into the growth of tobacco usage.
• In the future, not wishing to concede the tobacco market anymore to millennials, is expected to become one of the key driving forces of market expansion for luxury cigars. Wealthy young adults are starting to gain an addiction to the toxic element, nicotine, which causes them to feel really good and to have their attention diverted onto suppressing negative thoughts. This is the cause behind the spike in the consumption of high-end cigars among this group, which consequently heightens the market for such products. For example, wholesales as well as chain retailers sold 203.7 billion total cigarettes for the year 2020, growing from the sale of 202.9 billion cigarettes in 2019, whereas the Federal Trade Commission 2021, a US federal agency, is the agency responsible for such statistics. Hence, the demand for the luxury cigars is consequently on the growth due to the Millennial tobacco use increases. The niche for luxury cigars has of course an important technological trend which is gaining momentum on a large scale. The top corporations in the luxury cigar industry are consequently investing their efforts on creating innovations to boost their market position. As such, fostering the demand for Luxury Cigar.

Market Restraining Factors-

Growing Problem Regarding Fitness and Health

• Tobacco usage damages the organs in body. Smoking tobacco presents nicotine and another 4000 chemicals, including multiple cancer-causing chemicals, into blood, organs, and lungs. Smoking harms the airways and tiny air sacs in lungs. The deterioration begins shortly after somebody begins smoking, and lung operation declines if the individual smokes. Nevertheless, it may bring years for the concern to evolve enough to diagnose lung disease. Smoke injury in the lungs can lead to long-term extreme lung disorders such as chronic obstructive pulmonary disease. Chronic bronchitis is a common problem in people who smoke for a long time. In this condition, the airways make too much phlegm, pushing the person to attempt to cough it out. The airways become inflamed, and the cough becomes long-lasting. Over the period, the airways can get clogged by scar tissue and phlegm, leading to terrible lung infections known as pneumonia.

Report Coverage:

The report will cover the qualitative and quantitative data on the global Luxury Cigar Market. The qualitative data includes latest trends, market players analysis, market drivers, market opportunity, and many others. Also, the report quantitative data includes market size for every region, country, and segments according to your requirements. We can also provide customize report in every industry vertical.

By Type (Hand Rolled, Machine Rolled), By Distribution Channel (Offline, Online)

Report Scope and Segmentations:

Key Companies in the Luxury Cigar market include:

• Fuente Marketing Ltd.
• General Cigar
• Regius Cigars Ltd
• Gurkha Cigar Group
• Gran Habano Cigars
• Mayan Import
• The Villiger Group
• Altadis
• Rocky Patel Premium Cigars
• Swisher
• Habanos S.A.
• Davidoff
• Arturo Fuente
• Padrón Cigars
• Ashton Cigars
• La Flor Dominicana
• C. Newman Cigar Co.
• My Father Cigars
• Oliva Cigar Co.
• Rocky Patel Premium Cigars
• Alec Bradley Cigar Co.
• Tatuaje Cigars
• Drew Estate

Key Industry Developments:

In February 2023, Scandinavian Tobacco Group A/S acquired the Alec Bradley cigar business for USD 72.5 million. The brands under Alec Bradley are Alec & Bradley Kintsugi, Alec Bradley Double Broadleaf, and Alec Bradley Prensado. Each of these brands offers unique cigar blends and flavors, catering to the different preferences of cigar enthusiasts.

In February 2023, Davidoff re-released its Classic No. 1 cigar in a limited edition. The company also introduced a new marketing initiative called “The Difference,” highlighting its distinctive cigar creation process and providing customers with a deeper understanding of what makes its products unique in the market. The campaign was centered on the Davidoff White Band Collection, which includes renowned lines such as Signature, Grand Cru, Anniversario, and Millennium.

Market Segmentation Insights:

The market scope is segmented because of by Type, by Distribution Channel.

By Type

• Hand Rolled
• Machine Rolled

The hand rolled luxury cigars segment managed to have a 78.3% market share on the global market in the year 2023. Hand-made cigars indeed often attract more premium smokers than those machine-made ones which are regarded as being the best quality by a large number of cigar smokers. Hand-rolled cigars of the highest quality contain exclusively tobacco fillers, which consequently deliver a taste of the finest grade. Moreover, the carefully hampered, moisture-conserving trimmed tobacco leaves are used in wrappers, and they ensure a consistent, even burn. Furthermore, this creates a higher taste level and pleasure from smoking. Hand-rolled cigars inherently exude the classy feeling while cigar-lovers love to see many cigar components derived from 100% authentic tobacco.

The machine rolled luxury cigar business is prognosticated to expand its base at a CAGR of 7.3% from 2024 to 2032. Handcrafted luxury cigars are made by the delicate process of manufacturing, while machine-made ones are of the automatic nature of making. This creates the image of dependability and consistency, and therefore these brands are preferred by people who use them every day. Machines crafted cigars typically use different filler material relative to the filler in hand-rolled cigars, which is made of stems and scraps of tobacco leaves mixed with shorter and finer filler leaves. Such non-combustible drivel brings on a greater and faster burn than the one of hand-rolled cigars.

By Distribution Channel

• Online
• Offline

The offline channels segment has, in 2023, a share of 73.7% in luxury cigars. The stick-and-mortar shops are a remarkable collection of products to serve their customers well who have rich experience in terms of brands and flavours. The more brands that are available to choose among, the larger the audience expansion potential for the brand to attract and connect with customers. Local manufacturers are putting forth strategic moves to see the share of the offline distribution channel segment expand steadily. For instance, in January 2021, Scandinavian Tobacco Group (STG) launched Forged Cigar Co., a new cigar distribution company that serves brick-and-mortar retailers. This new company will operate independently from STG's existing entity, General Cigar Co., and will take on a portion of the company's catalogue of cigar brands. The move represents a strategic decision to divide the company's cigar brands and provide a dedicated distribution channel for specific products, improving its reach in the cigar industry.

Regional Snapshots:

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 2023 (47.80%). 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.

Luxury Cigar Market Report is also available for below Regions and Country Please Ask for that

North America

• U.S.
• Canada

Europe

• Switzerland
• Belgium
• Germany
• France
• U.K.
• Italy
• Spain
• Sweden
• Netherland
• Turkey
• Rest of Europe

Asia-Pacific

• India
• Australia
• Philippines
• Singapore
• South Korea
• Japan
• China
• Malaysia
• Thailand
• Indonesia
• Rest Of APAC

Latin America

• Mexico
• Argentina
• Peru
• Colombia
• Brazil
• Rest of South America

Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest Of MEA

Points Covered in the Report:

The points that are discussed within the report are the major market players that are involved in the market such as market players, raw material suppliers, equipment suppliers, end users, traders, distributors and etc.

• The complete profile of the companies is mentioned. And the capacity, production, price, revenue, cost, gross, gross margin, sales volume, sales revenue, consumption, growth rate, import, export, supply, future strategies, and the technological developments that they are making are also included within the report. This report analysed 5 years data history and forecast.
• The growth factors of the market are discussed in detail wherein the different end users of the market are explained in detail.
• Data and information by market player, by region, by type, by application and etc., and custom research can be added according to specific requirements.
• The report contains the SWOT analysis of the market. Finally, the report contains the conclusion part where the opinions of the industrial experts are included.

Key Questions:

• How much the global Luxury Cigar Market valued?
• Which region has the largest share in 2024 for the global Luxury Cigar Market?
• What are the driving factors for the market?
• Which is the leading segment in the global market?
• What are the major players in the market?

Research Scope of Luxury Cigar Market:

• Historic year: 2018- 2022
• Base year: 2023
• Forecast: 2024 to 2032
• Representation of Market revenue in USD Million