Luxury Cigar Market Share, Size, Trends, Industry Analysis Report, By Type (Hand Rolled, Machine Rolled); By Distribution Channel (Online, Offline); By Region; And Segment Forecasts, 2024 - 2032
- Published Date:Jan-2024
- Pages: 116
- Format: PDF
- Report ID: PM4191
- Base Year: 2023
- Historical Data: 2019 – 2022
Report Outlook
The global luxury cigar market was valued at USD 14.96 billion in 2023 and is expected to grow at a CAGR of 7.0% during the forecast period.
The market is driven by increased demand for luxury cigars, particularly among premium & millennial smokers. The growing use of tobacco among millennials, coupled with the establishment of numerous cigar lounges worldwide, is contributing to the heightened demand for luxury cigars. The expansion of private clubs, lounges, & online retail sector is playing a pivotal role in boosting the popularity of these high-quality cigars.
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Cigar retailers are experiencing a significant uptick in sales, driven by factors such as a growing consumer fascination with premium cigars, a favorable economic climate, and potential shifts in smoking habits. As per the findings from the 2023 Cigar Insider survey, a significant portion of cigar shops is witnessing a boost in sales this year as opposed to 2022. Among the 81 U.S. retailers surveyed, representing a total of 291 cigar shops, 69.1% indicated an increase in sales for the year 2023 compared to the previous year.
Additionally, luxury cigar enterprises consistently prioritize expanding their distribution networks through strategic partnerships with reputable retail channels. Through these initiatives, luxury cigar brands aim to increase their luxury cigar market presence and elevate product visibility among the broader public. An illustrative instance is Casdagli Cigars' expansion into the Middle East in April 2022, establishing a new foothold in Bahrain. Luxury Tobacco World WLL was chosen as the brand's representative in this region, facilitating the brand's outreach and representation.
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Growth Drivers
Rising legislative initiatives and the luxurious future of smoking lounges
Enactment of legislation by government bodies, manifesting in the form of passed bills aimed at expanding the presence of smoking lounges, is poised to create lucrative prospects for the luxury cigar industry. The proliferation of cigar lounges will afford cigar enthusiasts increased accessibility to dedicated spaces, elevating their overall smoking experience. This development is expected to draw both existing and potential cigar aficionados, expanding the reach of luxury cigars to a more extensive consumer base.
For instance, the recent introduction of 'Assembly Bill 451' in the Wisconsin State Assembly in October 2023 suggests the potential establishment of a new kind of cigar bar, an unprecedented opportunity since 2009. With the backing of the Premium Cigar Association (PCA), Assembly Bill 451 has been submitted to the State Affairs Committee for further deliberation. Should this legislative change be implemented, it would pave the way for more establishments to offer cigar experiences, providing a broader array of options for cigar enthusiasts.
Report Segmentation
The market is primarily segmented based on type, distribution channel, and region.
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By Type |
By Distribution Channel |
By Region |
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By Type Analysis
Hand rolled segment held the largest share of the market in 2023
Handl rolled segment held the largest share. Premium smokers exhibit a stronger preference for hand-rolled cigars over machine-rolled counterparts, primarily due to the significantly higher quality associated with the former. Luxury hand-rolled cigars stand out by exclusively utilizing tobacco leaves for their fillers, resulting in an enhanced flavor profile. Additionally, the carefully selected, moisture-bound tobacco leaves employed in the wrap contribute to a consistent & even burn, thereby elevating the overall quality and satisfaction of the smoking experience. The essence of luxury in hand-rolled cigars is further accentuated by the exclusive use of 100% pure tobacco, a distinctive feature highly valued by cigar connoisseurs.
Machine rolled segment is projected to grow at the fastest rate. Machine-made luxury cigars are manufactured through automated processes, diverging from the intricate hand-rolling method. This results in a reputation for dependability and uniformity, rendering them an ideal choice for everyday smoking. Machine-made cigars often utilize distinct filler materials compared to their hand-rolled counterparts, incorporating shorter fillers consisting of a blend of tobacco leaves, stems, and residual scraps. This filler composition contributes to a faster and hotter burn in machine-made cigars compared to their hand-rolled counterparts.
By Distribution Channel Analysis
Offline segment registered the largest market share in 2023
Offline segment accounted for the largest share. Brick-and-mortar retail stores provide a diverse array of options, frequently incorporating attached warehouses to accommodate varied customer preferences concerning brands and flavors. The broader the selection of available brands, the higher the likelihood of attracting and captivating a wide customer base. Market manufacturers are actively employing strategic initiatives to enhance the growth of the segment.
For instance, in January 2021, Scandinavian Tobacco Group (STG) introduced Forged Cigar, a novel cigar distribution firm catering to brick-and-mortar retailers. Operating independently from STG's established entity, General Cigar, this new company will assume responsibility for a segment of the catalog featuring various cigar brands. This strategic move signifies a decision to strategically segregate the company's cigar brands, establishing a dedicated distribution channel for specific products to enhance its presence in the cigar industry.
The online segment will grow rapidly. Online platforms offer a seamless shopping experience, enabling customers to explore, select, and purchase luxury cigars from the comfort of their homes. Comprehensive product descriptions, customer feedback, and educational content empower customers to make well-informed decisions when choosing cigars. This transparency and easy access to information enhance the online shopping experience, aiding customers in selecting cigars that align perfectly with their preferences and expectations.
Regional Insights
North America held the largest share of the global market in 2023
North America dominated the market. Shifts in consumer preferences and growing demand for premium, high-quality cigars are driving the advancement of the region's growth. Individuals who appreciate cigars now perceive upscale options as sophisticated, cultured, and exclusive. The association between these premium cigars and moments of relaxation, celebrations, and elevated social status is appealing to those seeking a luxurious and distinguished experience.
The increasing prevalence of cigar lounges that offer luxury cigar products is a key factor propelling market growth. Cigar lounges create a premium and exclusive environment tailored for cigar enthusiasts, providing comfortable seating, knowledgeable staff, and a curated selection of luxury cigars. The overall experience of indulging in a cigar within such an upscale setting amplifies the allure of luxury cigars.
The Asia Pacific region is projected to grow at a rapid pace. The rising smoking culture in the region, coupled with a robust community of premium cigar enthusiasts, is driving the demand for luxury cigars in this region. Numerous distributors, retailers, and manufacturers are actively engaged in efforts to expand their footprint in the area. For instance, in August 2023, Ferio Tego, a Honduras-based luxury cigar provider, disclosed that its upscale cigar products would be distributed through the Davidoff of Geneva Asia website. Davidoff of Geneva, a significant player in the market, has expanded its distribution to include Ferio Tego's luxury cigars in Japan, Macau, & Hong Kong.
Key Market Players & Competitive Insights
Companies adopt the strategy of diversifying their product lines by introducing new and innovative offerings to broaden their appeal and cater to a wider range of customer preferences and needs. This approach enables companies to attract a more diverse consumer base by offering a variety of products that align with different tastes, preferences, and requirements. By expanding their product portfolio, companies can capture the attention and loyalty of a broader audience, enhancing their market presence and competitiveness
Some of the major players operating in the global market include:
- Daniel Marshall
- Davidoff of Geneva USA
- Fuente Marketing Ltd
- Gurkha Cigar Group
- Montecristo
- My Father Cigars, Inc.
- Piloto Cigars Inc. (Padrón Cigars)
- Royal Danish Cigars
- Scandinavian Tobacco Group A/S (General Cigars)
- Tatuaje Cigars, Inc.
Recent Developments
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In February 2023, Scandinavian Tobacco acquired the Alec Bradley cigar unit for a sum of USD 72.5 million. The Alec Bradley brand encompasses notable lines such as Alec & Bradley Kintsugi, Alec Bradley Double Broadleaf, & Alec Bradley Prensado. Each brand features distinctive cigar blends and flavors tailored to cater to the diverse preferences of cigar enthusiasts.
- In February 2023, Davidoff reintroduced its Classic No. 1 cigar in a limited edition. Concurrently, the company launched a new marketing initiative titled "The Difference," which emphasizes its distinctive cigar creation process.
Luxury Cigar Market Report Scope
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Report Attributes |
Details |
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Market size value in 2024 |
USD 15.98 billion |
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Revenue forecast in 2032 |
USD 27.53 billion |
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CAGR |
7.0% from 2024 – 2032 |
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Base year |
2023 |
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Historical data |
2019 – 2022 |
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Forecast period |
2024 – 2032 |
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Quantitative units |
Revenue in USD billion and CAGR from 2024 to 2032 |
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Segments covered |
By Type, By Distribution Channel, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America, Middle East & Africa |
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Customization |
Report customization as per your requirements with respect to countries, region, and segmentation. |
FAQ's
The luxury cigar market report covering key segments are type, distribution channel, and region.
Luxury Cigar Market Size Worth $27.53 Billion By 2032
The global luxury cigar market is expected to grow at a CAGR of 7.0% during the forecast period.
North America is leading the global market
key driving factors in luxury cigar market are rising legislative initiatives and the luxurious future of smoking lounges.
