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Luxury Cigar Market Overview:
Global Luxury Cigar Market Size was valued at USD 11.8 Billion in 2022. The Luxury Cigar market industry is projected to grow from USD 12.4 Billion in 2023 to USD 22.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.60 % during the forecast period (2023 - 2032). a rise in tobacco consumption among millennials and the number of luxury hotels with premium cigar lounges, are the key market drivers enhancing the market growth.
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
Luxury Cigar Market Trends
A rise in luxury hotel establishments that comprise premium cigar lounges is driving the market growth
A rise in high-end hotel amenities with upscale cigar lounges is predicted to have a beneficial impact on market expansion during the projection period. Additionally, it is anticipated that the market expansion would be accelerated by the increased cigarette consumption among millennials. The COVID-19 epidemic has had a negative impact on the cigarette industry. Due to the closure of facilities and retail locations as a result of strict lockdown laws, global sales decreased by 20% to 30% between March and April 2020. Since consumers favoured internet shopping over offline shopping due to security concerns, businesses have responded well to the situation by offering luxury cigars online.
Luxury cigar sales are on the rise, especially among millennials and affluent smokers. In the United States, cigar sales generated USD 28.48 per person in 2019 and USD 30 in 2020, according to a USDA research. Demand for luxury cigars, which are primarily smoked at high-end lounges, has surged as a result of the creation of numerous high-end cigar lounges across the world in recent years.
According to a study by Cigar Journal, there were more than 4,553 cigar lounges operating in the United States as of 2020, and it is anticipated that this number will increase over the coming years, primarily because smokers are becoming more socially accepted and prefer smoother-tasting cigars. Additionally, cigarette smoking has considerably increased year after year all throughout the world. A World Health Organisation survey claims that from 1.05 billion men in 2000 to 1.09 billion men in 2018, there has been an increase in the number of men who smoke of over 40 million. The study also demonstrated that, despite the global target set by more than 32 countries to reduce tobacco consumption by 30% by 2025, only a 23% reduction could be achieved based on existing efforts, underscoring the fast rise in cigarette consumption. The rise in tobacco use is thus one of the major factors affecting the demand for premium cigars.
The expected growth of the luxury cigar business will be fueled by millennials' increasing tobacco use. The rise in tobacco use among younger wealthy adults, which in turn increases the market for expensive cigars, is due to the chemical nicotine, which helps people feel good while diverting their attention from negative thoughts. For instance, according to the Federal Trade Commission 2021, a US federal agency, wholesalers and retail chains collectively sold 203.7 billion cigarettes in 2020, up from 202.9 billion in 2019. Therefore, the growing tobacco consumption among millennials is what is driving the market for luxury cigars. Technology advancements have emerged as a dominant trend that is gaining traction in the market for premium cigars. Major companies in the luxury cigar sector are focusing on developing innovative technology solutions in order to strengthen their positions. Thus, driving the Luxury Cigar market revenue.
Luxury Cigar Market Segment Insights:
Luxury Cigar Distribution Channel Insights
The global Luxury Cigar market segmentation, based on Distribution Channel, includes online and offline. Offline segment dominated the global Luxury Cigar market in 2022. Around the world, lockdown restrictions are being relaxed, which has led to the reopening of smoke shops, hypermarkets, and enterprises selling pricey cigars. It is anticipated that the in-store customer base will steadily increase as the proportion of consumers who have received vaccinations increases and the threat posed by COVID-19 decreases. In addition, the development of this market segment can be connected to the growth of high-end cigar lounges into affluent hotels in countries like the U.S., Canada, and the U.K.
Luxury Cigar Type Insights
The global Luxury Cigar market segmentation, based on Type, includes hand rolled and machine rolled. Hand rolled segment accounted for the largest revenue share in 2022. Premium smokers prefer hand-rolled cigars to machine-rolled cigars because of their significantly higher quality. High-end hand-rolled cigars have a greater flavour since only pure tobacco leaves are utilised as the filler.
Figure 1: Global Luxury Cigar Market, by Distribution Channel, 2022 & 2032 (USD Billion)
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
Luxury Cigar Regional Insights
By region, Insights into the markets in North America, Europe, Asia-Pacific, and the rest of the world are provided by the study. The North America Luxury Cigar Market dominated this market in 2022 (45.80%). Customers are willing to pay a lot of money on unique premium cigars in North American countries like the U.S. and Canada. The presence of reputable luxury cigar manufacturers in North America, such as Rocky Patel Davidoff of Geneva and Altadis USA, is another factor that is projected to support demand. Further, In the North American area, the U.S. Luxury Cigar market had the biggest market share, while the Canada Luxury Cigar market had the quickest rate of expansion.
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: GLOBAL LUXURY CIGAR MARKET SHARE BY REGION 2022 (USD Billion)
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Source: Secondary Research, Primary Research, RESEARCH LAYER Database and Analyst Review
Europe Luxury Cigar market accounted for the healthy market share in 2022. The expansion of the tobacco industry in Germany and the United Kingdom, both of which have legal support, is predicted to ensure continued production of luxury cigars and, as a result, will favourably affect the growth of the market in Asia Pacific throughout the course of the projection period. Further, In the European region, the German Luxury Cigar market had the biggest market share, and the U.K. Luxury Cigar market had the quickest rate of growth.
The Asia Pacific Luxury Cigar market is expected to register significant growth from 2023 to 2032. Asia and the Pacific region have the highest concentration of smokers worldwide. According to a World Health Organisation report, as of 2020, Chinese smokers accounted for more than 25.0% of smokers worldwide. Moreover, In the Asia-Pacific region, the Indian Luxury Cigar market had the quickest rate of growth while China's Luxury Cigar market had the greatest market share.
Luxury Cigar Key Market Players & Competitive Insights
Leading industry companies are making significant R&D investments in order to diversify their product offerings, which will drive the Luxury Cigar market's expansion. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants are also engaging in a number of strategic actions to increase their global footprint. The Luxury Cigar sector needs to provide affordable products if it wants to grow and thrive in a more competitive and challenging market environment.
One of the primary business strategies employed by manufacturers in the worldwide Aerospace Foam industry to assist customers and expand the market sector is local manufacturing to reduce operational costs. Some of the biggest benefits to medicine have recently come from the Luxury Cigar sector. 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 by the name of HumidifGroup is an expert in developing packaging and other products for the cigar market. After more than 30 years on the market, our business has created what we think of as a specialised diversification. We can produce a wide selection of personalised pieces for our customers thanks to the variety of products and materials at our disposal. making sure that all customer needs are addressed in order to create a unique product that is uniquely suited for them. Using smart packaging technology, a US company called HumidifGroup USA, which specialises in developing packaging and accessories for the cigar business, launched Ferio Tego Cigar Co. in September 2021. With just a swipe of the phone, smart packaging immerses the end-user in information, fashionable videos, and education.
Traditional cigars and pipe tobacco are produced by the Scandinavian Tobacco Group A/S (STG). Pipe tobacco, machine-made and hand-made cigars, fine-cut tobacco, CMA cigars, fire accessories, tubes, and paper are all available for purchase. The company offers tobacco products for sale under the brand names Cao, Captain Black, Cohiba, Erinmore, Escort, Hajenius, Henri Wintermans, La Gloria Cubana, LA Paz, M BY Colts, Panter, Partagas, Petit, Signature, and Tiedemanns. STG distributes tobacco goods via sales offices to wholesalers and distributors. The company's operating areas span the Americas, Oceania, Asia-Pacific, Europe, and Africa. STG's headquarters are in Gentofte, Denmark. In November 2021, Scandinavian Tobacco Group A/S, a Danish-based manufacturer of cigars and traditional pipe tobacco, paid an undisclosed sum to buy Moderno Orifice del Sigaro Italiano (MOSI). With this acquisition, the company expands its market share in Italy's machine-rolled cigar sector and solidifies its position as the continent's top player. The Italian business Moderno Orifice del Sigaro Italiano (MOSI) produces cigars that are machine-rolled.
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
Luxury Cigar Industry Developments
September 2021: In order to expand production of hand-rolled cigars and construct a new upscale facility, The Villiger Group and Joya De Nicaragua formed a joint venture. The company asserted that by increasing a recently built plant, they would sustain and grow their niche in the American market for premium hand-rolled cigars.
Luxury Cigar Market Segmentation:
Luxury Cigar Type Outlook
· Hand Rolled
· Machine Rolled
Luxury Cigar Distribution Channel Outlook
· Online
· Offline
Luxury Cigar Regional Outlook
· North America
- US
- Canada
· Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
· Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
· Rest of the World
- Middle East
- Africa
- Latin America
Report Scope
|
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 |
The global 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.
Report Code :
RL65177
Published on :
Sep 2023
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