Luxury Cigar Market expected to register the fastest growth rate during the forecast period.

Luxury Cigar Industry Overview

The global luxury cigar market size is expected to reach USD 20.25 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 7.2% from 2021 to 2028. Rising consumption of tobacco across the globe is anticipated to drive the luxury cigar industry. The growing demand for high-quality smooth flavor cigars, such as Arturo Fuente Don Carlos, Mayan Sicars, El Gigante by Gran Habano, and Gurkha Black Dragon, is likely to fuel the overall demand.

 

Luxury Cigar Market Segmentation

Grand View Research has segmented the global luxury cigar market on the basis of type, distribution channel, and region:

 

Based on the Type Insights, the market is segmented into Hand Rolled and Machine Rolled

• The hand-rolled segment held the largest revenue share of over 75.0% in 2020 and is expected to maintain its lead over the forecast period. 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.
• Furthermore, 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, more than 362 million handmade cigars were imported into the U.S. in 2019, which was the highest spending for the import of hand-rolled cigars since 1997.
• The machine-rolled segment is projected to register a CAGR of 6.3% from 2021 to 2028. Machine-rolled luxury cigars are preferred by consumers who are willing to pay a comparatively low premium price for a luxury smoking experience.

 

Based on the Distribution Channel Insights, the market is segmented into Online and Offline

• The offline distribution channel held the largest revenue share of over 75.0% in 2020. The gradual lifting of lockdown restrictions throughout the globe is leading to the re-opening of smoke shops, hypermarkets, and stores offering luxury cigars. This is anticipated to slowly bring back the in-store consumer base as the number of vaccinated consumers increases and the threat of COVID-19 minimizes. Furthermore, the growth of this segment can be attributed to the rise in premium cigar lounges established in luxury hotels in countries, such as the U.S., Canada, and the U.K.
• Online platforms offer significant advantages to consumers, such as freedom of selection, hand-rolled and machine-rolled cigar prices, and high visibility of international brands, which makes them a suitable platform for all types of customers. Furthermore, online platforms offered a more convenient and safer platform than conventional smoke lounges or retail stores during the pandemic and lockdown restrictions, which was one of the major factors behind the demand for the product through online channels.

 

Luxury Cigar Regional Outlook

• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East & Africa

 

Key Companies Profile & Market Share Insights

The market is characterized by the presence of a few established players and new entrants. Companies have been enhancing their product capabilities to widen their supply, thereby expanding their consumer base.

Some prominent players in the global 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

 

Order a free sample PDF of the Luxury Cigar Market Intelligence Study, published by Grand View Research.