Cigarettes, Cigars and Cigarillos Market Report 2026

The cigarettes, cigars and cigarillos market size has grown steadily in recent years. It will grow from $256.23 billion in 2025 to $265.14 billion in 2026 at a compound annual growth rate (CAGR) of 3.5%. The growth in the historic period can be attributed to stable consumer demand for tobacco products, expansion of global tobacco trade, growth of established smoking populations, availability of diversified tobacco product formats, development of large-scale tobacco manufacturing.

The cigarettes, cigars and cigarillos market size is expected to see steady growth in the next few years. It will grow to $313.57 billion in 2030 at a compound annual growth rate (CAGR) of 4.3%. The growth in the forecast period can be attributed to increasing regulatory scrutiny on tobacco products, rising focus on reduced-risk product alternatives, expansion of premium cigar consumption, growing adoption of digital tax tracking systems, increasing compliance-driven product reformulation. Major trends in the forecast period include growing demand for premium tobacco products, expansion of flavor variants and product differentiation, rising focus on packaging innovation, increased adoption of track-and-trace systems, enhanced emphasis on regulatory compliance.

The rising prevalence of smoking is anticipated to drive the growth of the cigarettes, cigars, and cigarillos market in the coming years. Smoking generally refers to the act of inhaling and exhaling smoke produced by burning substances such as tobacco, cannabis, or other herbs through cigarettes, cigars, pipes, or similar devices. Smoking is contributing to increased demand for cigarettes, cigars, and cigarillos due to factors such as marketing influence, perceptions of luxury, product availability, pricing, and the addictive nature of tobacco products. For instance, in June 2025, according to PubMed Central, a U.S.-based repository for biomedical and life sciences journals, a published study reported that in 2024, the prevalence of current and daily smoking among Chinese adults aged 15 years and older was 23.2% and 20.3%, respectively, with higher rates among males and peak prevalence observed in the 30-59 age group. Therefore, the growing demand for cigarettes, cigars, and cigarillos is supporting the expansion of the cigarettes, cigars, and cigarillos market.

Major companies operating in the cigarettes, cigars, and cigarillos market are increasingly focusing on innovative solutions, such as hand-rolled cannagars, to meet the growing demand for cannabis-infused products and attract consumers seeking premium, alternative smoking experiences. Hand-rolled cannagars are luxury cannabis cigars created by tightly packing cannabis flowers into a slow-burning cannabis leaf wrap. For example, in May 2024, Made in Xiaolin, a US-based creative rolling company, introduced its hand-rolled cannagar to the New York market, marking a significant entry into the premium cannabis sector. This product aims to provide a sophisticated smoking experience, showcasing high-quality cannabis and artisanal craftsmanship. The launch reflects the increasing demand for luxury cannabis products and highlights the broader expansion of the cannabis market in New York, catering to consumers seeking exclusive, upscale options for their cannabis consumption.

In March 2024, Laudisi Enterprises, a U.S.-based company specializing in premium tobacco products and distribution, acquired Caldwell Cigar Company and Lost and Found Cigars for an undisclosed amount. Through this acquisition, Laudisi sought to expand its presence in the premium cigar segment by leveraging Caldwell’s established brand reputation and boutique cigar blends, along with Lost and Found’s distinctive offerings. The deal also involved integrating Caldwell’s co-founders into Laudisi’s senior management team to preserve product quality and brand authenticity. Caldwell Cigar Company is a U.S.-based premium cigar manufacturer focused on hand-rolled cigars, while Lost and Found Cigars is a U.S.-based premium cigar company known for its small-batch, boutique cigar lines featuring unique blends.

Major companies operating in the cigarettes, cigars and cigarillos market are Imperial brands plc, Altria Group Inc., British American Tobacco plc, Philip Morris International Inc., Gudang Garam, ITC Limited, Sampoerna, Swedish Match AB, Scandinavian Tobacco Group A/S, Godfrey Phillips India Ltd., Japan Tobacco International, Swisher International Inc., Habanos S.A., Davidoff of Geneva USA, Drew Estate Cigars, General Cigar Co. Inc., Gurkha Cigars, J.C. Newman Cigar Co., La Flor Dominicana, Oliva Cigar Co., Padron Cigars, Perdomo Cigars, Rocky Patel Premium Cigars, Arturo Fuente Cigars, Ashton Cigars, Alec Bradley Cigars, CAO Cigars, Crowned Heads, Dunbarton Tobacco & Trust, Espinosa Cigars, Foundation Cigar Co., Illusione Cigars, Joya de Nicaragua S.A., My Father Cigars Inc., Tatuaje Cigars.

Asia-Pacific was the largest region in the cigarettes, cigars, and cigarillos market in 2025. North America was the second-largest region in the cigarettes, cigars, and cigarillos market. The regions covered in the cigarettes, cigars and cigarillos market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the cigarettes, cigars and cigarillos market report are China, India, Japan, Australia, Indonesia, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, Taiwan, New Zealand, UK, Germany, France, Italy, Spain, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Portugal, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa.

The cigarettes, cigars & cigarillos market consists of sales of flavored cigarettes, cigars & cigarillos, and non-flavored cigarettes, cigars & cigarillos. 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.

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