Luxury Cigar Industry Overview
The global luxury cigar market size was valued at USD 11.61 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.2% from 2021 to 2028.
A rise in luxury hotel establishments that comprise premium cigar lounges is expected to have a positive impact on the market growth over the forecast period. Moreover, the increasing consumption of tobacco among millennials is anticipated to boost the market growth. The COVID-19 pandemic has had a negative impact on the tobacco industry. Factory and store closures due to strict lockdown measures resulted in disastrous consequences, with sales decreasing by 20%-30% from March to April 2020 globally. Companies have been responding positively to the crisis by offering luxury cigars through the online medium as consumers preferred online shopping over offline owing to safety concerns.
Gather more insights about the market drivers, restrains and growth of the Global Luxury Cigar Market
An increase in demand for luxury cigars among premium smokers and millennials is strengthening the market growth. Based on a study by the USDA, U.S. per person revenue generated from the sale of cigars was USD 28.48 in 2019 and increased to USD 30 in 2020. In recent years, a large number of premium cigar lounges have emerged across the globe has propelled the demand for luxury cigars majorly smoked in premium lounges.
According to a study by Cigar Journal, as of 2020, more than 4,553 cigar lounges were operating in the U.S., and this number is further expected to rise in the coming years, primarily driven by a rise in the social acceptability of smoking, coupled with an increase in consumer preference towards a smoother taste of cigars.
Furthermore, there has been a significant year-on-year rise in tobacco consumption across the globe. Based on a study by the World Health Organization, male tobacco use rose to approximately 40 million, from 1.05 billion in 2000 to 1.09 billion in 2018. The study also revealed that even though more than 32 countries worldwide are aiming to reduce tobacco consumption by 30% by 2025, based on current progress a reduction of only 23% could be achieved, depicting the drastic rise in tobacco use. Thus, the rise in tobacco consumption is one of the major factors impacting the demand for luxury cigars.
The online distribution channel has significantly changed the shopping habits of people as it offers benefits such as doorstep delivery, easy payment methods, heavy discounts, and the availability of a wide range of hand-rolled as well as machine-rolled luxury cigar selections on a single platform. Key players in the market are increasingly launching e-commerce websites in large lucrative markets owing to the rising internet penetration and increasing propensity for mobile shopping among consumers.
Browse through Grand View Research's Alcohol Tobacco Industry Research Reports.
- Tobacco Market - The global tobacco market size was valued at USD 849.9 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 2.4% from 2022 to 2030. The demand has been sustained by the growing number of smokers in the developing regions of Asia and Africa. The extensive marketing campaigns run by the major companies have also been a significant factor sustaining the industry.
- Luxury Hotel Market - The global luxury hotel market size was valued at USD 89.61 billion in 2019 and is anticipated to expand at a compound annual growth rate (CAGR) of 4.3% over the forecast period. Emerging tourism and corporate industries across various regions, rising disposable income, increasing standard of living of people, and rise in preference for leisure travel are expected to drive the market.
Luxury Cigar Market Segmentation
Grand View Research has segmented the global luxury cigar market on the basis of type, distribution channel, and region:
Luxury Cigar Type Outlook (Revenue, USD Million, 2016 - 2028)
- Hand Rolled
- Machine Rolled
Luxury Cigar Distribution Channel Outlook (Revenue, USD Million, 2016 - 2028)
- Online
- Offline
Luxury Cigar Regional Outlook (Revenue, USD Million, 2016 - 2028)
- North America
- Europe
- Asia Pacific
- Central South America
- Middle East Africa
Market Share Insights
- September 2021: The Villiger Group entered into a joint venture with Joya De Nicaragua to open a new modern factory to increase the production of hand-rolled cigars.
- May 2018: Ritz London opened a cigar lounge on their ground floor to offer a wide variety of luxury cigars, such as Cohiba, Partagás, Montecristo, Ramón Allones, and Bolívar.
Key Companies profiled:
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
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About Grand View Research
Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.
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