Luxury Cigars Global Market Report 2024

The luxury cigars market size has grown strongly in recent years. It will grow from $16.35 billion in 2023 to $17.77 billion in 2024 at a compound annual growth rate (CAGR) of 8.7%. Historically, the growth in the market can be attributed to factors such as the collectability and investment value of products, endorsements by celebrities and influencers, regulations and trade policies, the global expansion of the market, and the influence of ritualistic smoking culture.

The luxury cigars market size is expected to see strong growth in the next few years. It will grow to $26.01 billion in 2028 at a compound annual growth rate (CAGR) of 10.0%. The projected growth in the forecast period can be attributed to several factors, including globalization and the emergence of new markets, economic trends and consumer spending habits, a focus on sustainability and eco-friendly practices, marketing strategies and digital presence, and the evolution of retail and distribution channels. Major trends expected in this period include the emergence of health-conscious luxury smokers, an emphasis on collectibility and investment value, the growth of online communities and educational resources, an increase in cigar lounges and experiential offerings, and a celebration of heritage and tradition within the industry.

The growing consumption of tobacco among millennials is anticipated to stimulate the growth of the luxury cigars market in the foreseeable future. The increase in tobacco usage among younger affluent individuals is attributed to nicotine, a chemical that induces feelings of pleasure and helps divert from negative thoughts, consequently elevating the demand for luxury cigars. For instance, as reported by Statistics Canada, a Canadian government agency, in October 2023, cigarette sales surged by 15.5%, reaching 1.2 billion, compared to September 2023. Hence, the rising tobacco consumption among millennials is a driving force behind the.

The anticipated expansion of international tourism is set to drive the growth of the luxury cigar market in the foreseeable future. International tourism involves individuals traveling across national borders for leisure, business, or other non-residential purposes. Luxury cigars often represent exclusive and refined cultural elements, adding to the experiences of international tourists seeking sophisticated and memorable moments. For example, as reported by the United Nations World Tourism Organization in May 2023, international tourism receipts rebounded, reaching the significant milestone of USD 1 trillion in 2022. This marked a substantial 50% growth in real terms compared to the figures recorded in 2021. Hence, the upsurge in international tourism is fueling the expansion of the luxury cigar market.

Technological advancements are significantly shaping the landscape of the luxury cigars market. Leading companies in this sector are prioritizing the development of innovative technological solutions to bolster their market presence. For instance, in September 2021, HumidifGroup USA, a US-based company specializing in cigar accessories and packaging, introduced Ferio Tego Cigar Co, leveraging Smart packaging technology. This innovative packaging allows users to access information, captivating videos, and educational content with a simple swipe of their phone, offering an immersive and informative experience for consumers.

Major players within the luxury cigar market are strategically concentrating on crafting high-end cigar lines, notably limited-edition luxury cigars, timed for holiday releases, in pursuit of a competitive advantage. These limited-edition luxury cigars denote exclusive and superior-quality tobacco products produced in restricted quantities and available for a specified period. For instance, in December 2022, Blue Shark Vodka, a US-based spirits company, partnered with JC Newman Cigars Cigar Company, a US-based cigar manufacturer, to unveil a limited-edition collection of Nicaraguan cigars. Presented in an exquisite white-lacquered box adorned with Blue Shark's distinctive metallic and blue design, these cigars are meticulously crafted to harmonize with the vodka, offering aficionados a luxurious indulgence. Priced at $150, the package also includes a specialty Blue Shark Vodka case, available for purchase on BlueSharkVodka.com, appealing to discerning consumers seeking life's refined pleasures.

In November 2021, Scandinavian Tobacco Group A/S, a Danish manufacturer specializing in cigars and traditional pipe tobacco, acquired a controlling interest in Moderno Orifice del Sigaro Italiano (MOSI) for an undisclosed sum. This strategic acquisition solidifies the company's presence in the Italian machine-rolled cigar market and further strengthens its leading position in Europe's machine-rolled cigar segment. MOSI, headquartered in Italy, is renowned for its production of machine-rolled cigars.

Major companies operating in the luxury cigars market report are China National Tobacco Corporation, Imperial Brands PLC, General Cigar Co. Inc., Regius Cigars Ltd., Scandinavian Tobacco Group A/S, Gran Habano Cigars Inc., Habanos S.A., Davidoff & Cie. Ltd., Swisher International Inc., Royal Agio Cigars B.V., Altadis U.S.A. Inc., Drew Estate, J.C. Newman Cigar Company, The Villiger Group AG, Dunhill Tobacco Company, Oliva Cigar Company, Viaje Cigars Inc., Ashton Cigar Company, Tatuaje Cigars, Rocky Patel Premium Cigars, Gurkha Cigar Group LLC, My Father Cigars Inc., Swedish Match AB, CLE Cigar Co., Arturo Fuente Cigar Company, Espinosa Cigars, Mayan Import Company LLC, Cigar Aficionado Media Group LLC, Montecristo Cigar Company, New World Cigars LLC.

North America was the largest region in the luxury cigars market share in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the luxury cigars market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the luxury cigars market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Luxury cigars come in two main types: machine-made cigars and handmade cigars. Machine-made cigars are produced using high-speed machinery to combine short-fill tobacco, usually scraps or pieces of tobacco, with a binder and wrapper. These cigars can be flavored or unflavored and are available in various shapes such as parejo cigars and figurado cigars. They are enjoyed by both male and female smokers and are distributed through various online and offline channels.

The luxury cigar market research report is one of a series of new reports that provides luxury cigar market statistics, including luxury cigar industry global market size, regional shares, competitors with a luxury cigar market share, detailed luxury cigar market segments, market trends and opportunities, and any further data you may need to thrive in the luxury cigar industry. This luxury cigar market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The luxury cigar market consists of sales of hand-rolled and machine-rolled luxury cigars. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.