Cigar Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Cigar Market is Segmented by Product Type (Conventional Cigar and Premium Cigar), Distribution Channel (Offline Retail Stores and Online Retail Stores), and Geography (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa). The report offers market size and forecast in value terms in USD million for all the above segments.

Market Snapshot

Cigar Market Size
Study Period: 2016 -2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 11.54 %
Cigar Market Major Players

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Market Overview

The cigar market is projected to register a CAGR of 11.54% during the forecast period, 2022-2027.

As per many surveys, consumers intended to quit smoking due to concerns about elevated health risks if they contracted COVID-19, leading to increased cigar smoking. This increase is attributed to consumers' inability to deviate their minds to other things, ultimately leading to spending more money and time on their smoking habits. According to a government source, the world’s largest cigar producer, the Caribbean, is planning to export a record USD 1 billion worth of tobacco products this year, representing a 6% jump over the USD 942 million it sold abroad in 2019.

Increased consumer inclination toward products complimenting the opulent lifestyles, along with the rapidly growing premiumization of cigars, has been boosting the cigar market globally.

In addition, government regulations related to tobacco and tobacco products influence and remain a key factor in driving the cigar market. For instance, the FDA requires premium cigar manufacturers and distributors to label their products with mandatory warning statements, similar to the wording already required on cigarette and tobacco packaging. These warnings must also be included in advertisements and marketing for premium cigars.

Scope of the Report

The cigar is a bundle of dried and fermented tobacco leaves rolled into a cylindrical shape for smoking. The cigar market is segmented by product type, distribution channel, and geography. By product type, the market is segmented into the conventional cigar and premium cigar segments. By distribution channel, the market is segmented into offline retail stores and online retail stores​​. By geography, the cigar market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market size and forecast are provided based on value (USD million).

By Product Type
Conventional Cigar
Premium Cigar
By Distribution Channel
Offline Retail Stores
Online Retail Stores
By Geography
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Rest of Asia-Pacific
South America
Rest of South America
Middle-East and Africa
South Africa
Saudi Arabia
Rest of Middle-East and Africa

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Key Market Trends

Continuous Increase in Smoking Rates Boosting Sales of Conventional Cigars

As economic scenarios improve in developed countries, like the United States, the appeal of the fine machine-made conventional cigar, a relatively affordable option among tobacco products, is expected to weaken, with many consumers likely to prefer premium cigars. In March 2018, the FDA started soliciting opinions and feedback on its plans to regulate cigars in the United States by issuing an Advanced Notice of Proposed Rulemaking (ANPRM) for premium cigars, which is expected to affect conventional cigars' consumption in the United States and North America. Conventional cigar manufacturers are also conducting R&D activities to develop better tobacco quality and new flavors and are investing in improving packaging to further the aesthetic appeal.

Cigar Market Share

Asia-Pacific Holds the Largest Market Share

In the Asia-Pacific market, the consumption of conventional cigars is higher compared to premium cigars due to the extremely high tax rates for premium cigars. The government bodies in regions like India do not differentiate between premium cigars, which are more of a luxury product, and other tobacco products, such as cigarettes and loose tobacco, which are addictive and very harmful. Furthermore, the ban on e-cigarettes in the developed parts of China, including Beijing, is the major factor responsible for the growth of the cigar market in China. The higher prices discourage the youth from smoking cigars and cigarettes and encourage the current smokers to quit. The tobacco tax combines an ad valorem tax and a specific excise tax. The total tobacco tax rate in China is approximately 40% at the retail price level, far below the median range of the tax rates of the international community, which is between 65% and 70%. Therefore, this higher price is responsible for the significant value generation of the tobacco market in the country, despite a decrease in sales volume.

Cigar Market Growth

Competitive Landscape

The cigar market is highly consolidated and competitive, with the strong presence of regional and global players. Well-established companies with a known brand attached to their business profile have a higher penetration rate across retail shelves, mostly because of business expansion and a higher share of consumer preference across developed and developing markets. Some major players in the market include Swisher International Group, Imperial Brands PLC, Scandinavian Tobacco Group, and Altria Group Inc.

Recent Developments

  • In September 2021, The Villiger Group entered a joint venture with Joya De Nicaragua to open a new modern factory to increase the production of hand-rolled cigars. The company announced that opening a new factory would help it strengthen and expand its market position in the US market for luxury hand-rolled cigars.
  • In June 2019, El Artista Cigars launched a range of new cigars under the Buffalo TEN brand, which claims to offer better tobacco quality with attractive packaging.
  • In November 2019, Davidoff expanded operations in Hong Kong by opening a new flagship store in a luxury shopping destination, The Landmark. The new 580 sq. ft store is 61% bigger than the original 355 sq. ft store, located on the same premises.

Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Product Type

      1. 5.1.1 Conventional Cigar

      2. 5.1.2 Premium Cigar

    2. 5.2 By Distribution Channel

      1. 5.2.1 Offline Retail Stores

      2. 5.2.2 Online Retail Stores

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. United States

        2. Canada

        3. Mexico

        4. Rest of North America

      2. 5.3.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Russia

        5. Spain

        6. Italy

        7. Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. China

        2. Japan

        3. India

        4. Australia

        5. Rest of Asia-Pacific

      4. 5.3.4 South America

        1. Brazil

        2. Argentina

        3. Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. South Africa

        2. Saudi Arabia

        3. Rest of Middle-East and Africa


    1. 6.1 Strategies Adopted by Key Players

    2. 6.2 Most Active Companies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Imperial Brands

      2. 6.4.2 Scandinavian Tobacco Group AS

      3. 6.4.3 Altria Group Inc.

      4. 6.4.4 Habanos SA

      5. 6.4.5 Swisher International Inc.

      6. 6.4.6 Swedish Match AB

      7. 6.4.7 Villiger Sohne AG

      8. 6.4.8 Burger Sohne Holding AG (Danneman)

      9. 6.4.9 Arnold Andre GmbH & Company KG

      10. 6.4.10 Holt's Cigar Company Inc.

    5. *List Not Exhaustive


**Subject to Availability

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Frequently Asked Questions

The Cigar Market market is studied from 2016 - 2027.

The Cigar Market is growing at a CAGR of 11.54% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

Imperial Tobacco Group, Swedish Match AB, Swisher International Group Inc., Scandinavian Tobacco Group, Altria Group Inc. are the major companies operating in Cigar Market.

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