Market Size of Cigar Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 53.75 Billion |
| Market Size (2029) | USD 88.28 Billion |
| CAGR (2024 - 2029) | 10.43 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Cigar Market Analysis
The Cigar Market size is estimated at USD 53.75 billion in 2024, and is expected to reach USD 88.28 billion by 2029, growing at a CAGR of 10.43% during the forecast period (2024-2029).
Increasing consumer inclination toward products complementing opulent lifestyles and the premiumization of cigars boost the cigar market globally. Rising disposable income, demand for premium products, and celebrity endorsements further drive the cigar market. As cigars are relatively expensive and specially handcrafted, they are considered a luxury product and are favored by high-income groups. Other factors propelling the cigar market include convenience and innovation. Chain stores with drive-through window outlets are gaining traction due to the convenience offered by such stores. Customers find these drive-through windows convenient, aiding in increasing cigar sales.
The emergence and promotion of cigar culture, including cigar lounges, clubs, and events, have increased customer interest in cigars. These spaces provide enthusiasts with a social environment to enjoy cigars, share experiences, and discuss the nuances of different cigar brands and varieties. In addition, companies are offering new packaging designs for cigars to attract consumers and increase their market share. For instance, in May 2024, Bond Roberts announced the launch of its own cigar brand called Bond Roberts Cigars. This release consists of two sizes, both made with a “109”-style belicoso head: Petit 109, measuring 5 7/8 inches by 50 ring gauge, and 109, at 7 1/4 by 50. Furthermore, there has been a growing trend toward artisanal and premium products across various industries, including tobacco. Cigar enthusiasts frequently seek premium tobacco cigars that are crafted with precision. Such factors are driving the demand for cigar products worldwide.
Cigar Industry Segmentation
A cigar is defined as a roll of tobacco wrapped in leaf tobacco or in a substance that contains tobacco. Cigars differ from cigarettes in that cigarettes are rolls of tobacco wrapped in paper or in a substance that does not contain tobacco.
The cigar market is segmented by product type, distribution channel, and geography. The market is segmented by product type into conventional and premium cigars. The market is segmented by distribution channel into offline and online retail stores. By geography, the cigar market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. The market sizing has been done in value terms (USD) for all the above-mentioned segments.
| Product Type | |
| Conventional Cigar | |
| Premium Cigar |
| Distribution Channel | |
| Offline Retail Stores | |
| Online Retail Stores |
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Cigar Market Size Summary
The cigar market is experiencing significant growth, driven by a shift towards premiumization and the integration of cigars into luxurious lifestyles. This trend is supported by increasing disposable incomes and a growing demand for high-end products, often endorsed by celebrities. As cigars are typically handmade and priced as luxury items, they appeal predominantly to affluent consumers. The market is further bolstered by innovations in convenience, such as drive-through outlets, which enhance accessibility and boost sales. The rise of cigar culture, with lounges and clubs providing social spaces for enthusiasts, has also contributed to heightened consumer interest. Companies are actively engaging consumers through new packaging designs and product offerings, catering to the demand for artisanal and premium cigars.
The distribution of cigars is predominantly through offline retail channels, with convenience stores and specialty stores being the most popular choices for consumers. These channels offer strategic locations and a wide assortment of products, making them key players in the market. The Asia-Pacific region shows a unique consumption pattern, with conventional cigars being more popular due to high taxes on premium varieties. The region's robust tobacco production and the ban on e-cigarettes in parts of China have further fueled market growth. The competitive landscape is marked by the presence of both regional and global players, with major companies like Swisher International Group and Philip Morris International Inc. expanding their market share through product innovation and strategic distribution.
Cigar Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Cigar as a Status Symbol
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1.1.2 Premiumization & Product Differentiation Play a Key Role
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1.2 Market Restraints
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1.2.1 Stringent Government Regulations & Health Factors
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1.2.2 Stiff Competition From Substitutes
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1.3 Industry Attractiveness - Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Product Type
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2.1.1 Conventional Cigar
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2.1.2 Premium Cigar
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2.2 Distribution Channel
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2.2.1 Offline Retail Stores
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2.2.2 Online Retail Stores
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 Germany
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2.3.2.2 United Kingdom
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2.3.2.3 France
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2.3.2.4 Russia
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2.3.2.5 Spain
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2.3.2.6 Italy
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle-East and Africa
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2.3.5.1 South Africa
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2.3.5.2 Saudi Arabia
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2.3.5.3 Rest of Middle East and Africa
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Cigar Market Size FAQs
How big is the Cigar Market?
The Cigar Market size is expected to reach USD 53.75 billion in 2024 and grow at a CAGR of 10.43% to reach USD 88.28 billion by 2029.
What is the current Cigar Market size?
In 2024, the Cigar Market size is expected to reach USD 53.75 billion.
