Market Trends of Cigar Industry
Rising Income Levels and Consumer Spending on Social Smoking Clubs Are Fueling the Demand for Premium Cigars
The demand for premium cigars is fueled by the growing popularity of cigar lounges and social smoking clubs. The consumption of premium cigars, especially among the urban population, has increased as a result of the trend of socializing over an excellent cigar. Hand-rolled premium cigars are in high demand, with the exclusive tobacco leaves used as fillers that give them a better flavor profile. In addition, the careful selection and moisture retention of chopped tobacco leaves used in packaging ensure that they burn uniformly, resulting in a high level of satisfaction with smoking. Hand-rolled cigars are characterized by a sense of premium quality, with a significant emphasis placed on using 100% pure tobacco, a characteristic that cigar connoisseurs are very fond of.
According to the Centers for Disease Control and Prevention, in 2023, cigars were the third most commonly used tobacco product among US middle and high school students. Concerns were raised that these products may be particularly attractive to young people due to the availability of flavorings, such as cherry, which are prohibited in cigarettes, and the fact that they are commonly sold as a single stick. In addition, the global demand for premium flavored cigars from the student population increased. As of 2022, an estimated 8.8 million adults globally aged 18 and older (3.5%) smoked cigars.
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 on premium cigars. The ban on e-cigarettes in developed parts of China, including Beijing, is the primary factor responsible for the growth of the country's cigar market. According to WHO, in 2022, there were more than 300 million smokers in China, nearly one-third of the world's total. The high tobacco production in Asian countries also drives the market for cigars across the region. Southeast countries such as Indonesia, the Philippines, and China are the major producers of cigars in the Asia-Pacific region.
India ranked behind China as the world's second-largest tobacco producer. According to WHO, as of 2023, tobacco was an important cash crop grown on 0.4 million hectares in the country, accounting for approximately 0.27% of the net cultivated area. The annual production was around 700 million kg, and the country ranked third globally in terms of production after China and Brazil. Several types of tobacco are made in the nation, including flue-cured Virginia tobacco, country tobacco, burley tobacco, bidi tobacco, Rustica tobacco, hookah tobacco, cigar-wrapped tobacco, cheroot tobacco, burley tobacco, oriental tobacco, and chewing tobacco.
