Global Luxury Cigar Market - 2022-2029
The global luxury cigar market valued USD xx million in 2021 and is forecast to reach USD XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029)
The luxury cigar is a bundle of fermented and dried tobacco leaves rolled into a royal and luxurious cylindrical shape for smoking. It can be hand-rolled or machine-rolled. Cigar sales have risen drastically over the past few years due to rising cigar consumption. Cigars are big rolls of tobacco, while cigarillos are a tinier form of large cigars. Cigars own a mark of success and luxury. Therefore, cigars are usually smoked to glorify certain events. Factories make luxury cigars with more pleasing tastes to repress the powerful flavor of tobacco. The increasing consumption of tobacco among millennials is anticipated to boost market growth.
The increasing consumption of tobacco has led to the adoption of luxury cigar across the world. For Instance: according to the World Health Organization, in 2021, the number of tobacco consumers is increased rapidly. Globally, around 8 million people consume tobacco each year. Approximately 1.3 million tobacco users are from developing countries, and 20 % of global tobacco users from developed countries. The global market is expected to witness prominent growth in the coming year attributable to the expanding number of luxury hotels with luxury lounges. Following the overall restriction on smoking out in the open spots, such parlors and bars are showing up in luxury hotels and bars. For example, DUKES Hotel of London invites its luxury-adoring guests in the cognac and cigar garden. The disconnected yard situated behind the inn offers a rundown of cognacs to go with the Cuban cigar.
Nicotine is a favorably addictive chemical seen in the tobacco plant. The addiction is physical, habitual users crave the chemical, and mental users deliberately prefer nicotine's effects. Nicotine obsession is also behavioral. People become dependent on the actions implicated with utilizing tobacco. They also use tobacco in certain circumstances, such as under stress or after meals. Once addicted, people consume tobacco products to produce the usual dose of nicotine the body needs. These factors are responsible for the growth of consumption of luxury cigar market.
Hand-rolled cigars have better popularity among premium smokers than machine-rolled cigars owing to their comparatively higher quality. Fillers of luxury hand-rolled cigars are made up purely of tobacco leaves, which leads to a better flavor. There has been a rise in consumer preference for a smoother taste experience from cigars, coupled with the willingness to pay a higher price, which, in turn, is increasing the production and imports of cigars. Based on a study by the Cigar Association of America, in 2019 more than 362 million handmade cigars were imported into the U.S., which was the highest spending for importing hand-rolled cigars since 1997. Furthermore, male smokers have a higher consumer preference than female smokers owing to their smooth and mellow taste. Based on a study by MDPI, U.S., more than 79% of male smokers prefer premium products owing to their smoother and cleaner taste, which is anticipated to further fuel the market demand over the forecast period. Hand-rolled cigars are preferred more than machine-rolled luxury cigars due to flavor, which is anticipated the growth of hand rolled cigar market.
The online segment dominated the market. The online platforms present essential benefits to customers, such as independence of choice and availability of a wide range of hand-rolled and machine-rolled luxury cigar choices on a single platform. And high visibility of global labels is pushing them to a good platform for all types of buyers. Also, the online segment delivers a more suitable and safer platform than traditional smoke nightclubs.
The increasing consumption of tobacco in the emerging markets of U.S. and Canada due to a growing number of new factories and luxury cigar launches and rising demand for unconventional cigar flavors is anticipated to propel the growth of the North America market. Based on a study by the USDA, U.S. per person revenue generated from the sale of cigars was USD 28.48 in 2019 and increased to USD 30 in 2020. In recent years, a large number of premium cigar lounges have emerged across the globe has propelled the demand for luxury cigars majorly smoked in premium lounges. According to a study by Cigar Journal, as of 2020, more than 4,553 cigar lounges were operating in the U.S., and this number is further expected to rise in the coming years, primarily driven by a rise in the social acceptability of smoking, coupled with an increase in consumer preference towards a smoother taste of cigars. Likewise, well-established premium cigar factories in North America, such as Altadis USA and Rocky Patel Davidoff of Geneva, are anticipated to help market need in the projection period. Ordinary stogie makers from U.S. are likewise directing R&D exercises to concoct better tobacco quality and new flavors. For example, in 2019, El Artista Cigars dispatched a scope of new stogie with the brand name Buffalo TEN which professes to offer better tobacco quality with alluring building.
The key market players such as Fuente Marketing Ltd., General Cigar Company, Regius Cigars Ltd., and Gurkha Cigar Group are developing new flavors for the luxury cigar market. These companies have been taking significant measures to increase their market penetration worldwide, with luxury cigar innovations and setting up more production plants and their associated research and development centers. These players are also active on social media platforms to advertise their luxury cigar products to attract more consumers worldwide. In February 2022, General Cigar company announced adding the Punch Knuckle Buster Maduro. The cigars are available in three sizes: Robusto, Toro, and Gordo. The Robusto and Toro are presented in 25-count boxes, while the Gordo is presented in 20-count boxes. Pricing ranges from $5.19 to $6.19 per cigar. In June 2019, El Artista Cigars established new cigars underneath the Buffalo TEN label, which declares to deliver more good tobacco grades with stunning packaging. In September 2021, The Villiger Group entered into a joint venture with Joya De Nicaragua to open a new modern factory to increase the production of hand-rolled cigars.
The COVID-19 pandemic has adversely affected several industries, including the luxury cigar market, worldwide. A decline in consumer spending on cigar was noted by brands, like Fuente Marketing Ltd., General Cigar Company, and Regius Cigars Ltd., among others, as consumers reduced or delayed discretionary spending in response to the impacts of COVID-19, owing to a rise in unemployment rates and diminished consumer confidence. In spite of seriousness of the situation and the fact that many governments continue to impose physical distance requirements, construction companies are now forward when the pandemic subsides and a new normal begins. As a result of COVID-19, many fundamental aspects of the sector have changed, including customer behavior, business revenue, and various features of corporate operations. Thus, some companies may unable to survive the crisis.
The global luxury cigar market report would provide an access to approximately 53 market data tables, 43 figures and 180 pages.