Premium Tobacco Products Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 5.75 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Premium Tobacco Products Market Analysis
The premium tobacco products market is projected to register a CAGR of 5.75% during the forecast period, 2022-2027.
Changing consumer lifestyles, increasing working population, and innovative product launches in terms of ingredient, flavor, and tobacco content, are some of the factors driving the premium tobacco products market growth across different regions. Additionally, factors, such as consumer knowledge and an increase in awareness of branded products and services, through digital media and other sources, coupled with the advent of social media are anticipated to boost the demand for premium tobacco products across the worldwide market. With increasing consumer awareness regarding health benefits, vendors are introducing a wide variety of e-liquid made with organic and herbal ingredients that are added to e-cigarettes which are expensive as compared to conventional e-liquids. Similarly, few tobacco products are made from the selected tobacco raw materials and equipped with a highly efficient carbon filter, resulting in a higher price. Therefore, the ongoing product innovation and affinity of consumers towards luxury experience is expected to push the demand in the premium tobacco products market during the forecasted study period.
Premium Tobacco Products Market Trends
This section covers the major market trends shaping the Premium Tobacco Products Market according to our research experts:
Product Differentiation as a Key Strategy.
With the rising health-consciousness consumers are increasingly preferring eco-friendly tobacco products which have promoted new product developments in the markets such as organic e-liquids. For example, Vapor Tobacco Manufacturing LLC offers certified organic e-liquids. Their offerings are certified organic under the United States Department of Agriculture's National Organic Program. Eco-friendly cigarettes benefit the environment in more than one way, as these cigarettes reduce the repercussions of deforestation to the environment due to the cultivation of tobacco. Furthermore, various studies suggested that cigarette butts harm marine ecology more than straws do, which in turn encourages key brands to innovate and introduce sustainably manufactured tobacco products. For instance, in 2020, Smokey Treats, a South African company, launched Woodland Craft Cigarettes, which have zero artificial additives and are 100% natural, Woodlands also happen to have biodegradable filters made from wooden sponges.
North America Holds the Largest Market Share
The willingness of consumers to spend on premium cigarettes for an exclusive smoking experience is identified as the key market driver in North America. According to the CDC, in 2020, nearly 13 of every 100 U.S. adults aged 18 years or older (12.5%) currently smokes cigarettes. This means an estimated 30.8 million adults in the United States currently smoke cigarettes. Moreover, according to Truth Initiative Organization, E-cigarettes were the second most commonly used tobacco product, with more than 11 million USA adults reporting use of the product in 2020. This, in turn, makes the North American region a potential market for premium tobacco products as they also have comparatively high consumer spending.
Furthermore, according to a study by Cigar Journal, there were more than 4,553 cigar lounges open in the United States as of 2020, and this number is anticipated to grow in the years to come due primarily to a rise in the social acceptance of smoking and a rise in consumer preference for cigars with a smoother taste. According to UN Comtrade, the United States was by far the leading importer of cigars worldwide in 2021. The country imported almost 1.5 billion U.S. dollars of cigars, cheroots and cigarillos. The rising focus of major premium cigar manufacturers, such as Rocky Patel, Fuente Marketing Ltd., and Padron, on expanding their machine-rolled cigar portfolio is leading to the growth of this market.
Premium Tobacco Products Industry Overview
The global premium tobacco products market is highly competitive with the strong presence of regional and global players in the market. Major players in the market include British American Tobacco plc, Philip Morris Products S.A, Imperial Brands plc, Japan Tobacco International, and Arturo Fuente, holding a significant share of the market studied. Moreover, existing players in the market are highly focused on innovating existing product lines with ingredients, nicotine/tobacco content, manufacturing process, and flavors that can target more new-age younger consumers.
Premium Tobacco Products Market Leaders
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Philip Morris Products S.A
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British American Tobacco plc
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SMOORE International
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Arturo Fuente
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Ashton Cigars
*Disclaimer: Major Players sorted in no particular order
Premium Tobacco Products Market News
- In January 2022, Casdagli Cigars officially launched in the United Kingdom market as a part of a strategic investment adding to the company's ongoing expansion in the European market.
- In January 2021, BAT launched its first CBD vaping product, VUSE CBD Zone. This latest innovation will allow, for the first time, to offer adult consumers a range of high-quality CBD vaping products. This new range is available in three e-liquid flavors: mint, mango, and berry; and two strengths i.e., 50mg and 100mg.
- In December 2020, Vape Dinner Lady launched two new premium e-liquids, the company is extending its autumn winter line-up by introducing blue menthol to its Ice range and pink berry to its fruit portfolio of e-liquids.
Premium Tobacco Products Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Force Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Product Type
5.1.1 Cigarettes
5.1.2 Cigars and Cigarillos
5.1.3 E-Cigarettes
5.1.4 Others
5.2 By Distribution Channel
5.2.1 Online Retail Stores
5.2.2 Offline Retail Stores
5.3 By Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 Germany
5.3.2.3 Spain
5.3.2.4 France
5.3.2.5 Italy
5.3.2.6 Russia
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East & Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle East & Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Positioning of Key Players
6.3 Company Profiles
6.3.1 British American Tobacco plc
6.3.2 Altria Group, Inc.
6.3.3 Swedish Match AB
6.3.4 Philip Morris Products S.A
6.3.5 SMOORE International
6.3.6 Japan Tobacco International
6.3.7 Imperial Brands plc
6.3.8 Arturo Fuente
6.3.9 Juul Labs, Inc.
6.3.10 Ashton Cigars
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
9. DISCLAIMER
Premium Tobacco Products Industry Segmentation
Premium tobacco products refer to cigarettes, cigars, cigarillos, e-cigarettes, etc. marketed at higher price points. Each of these types is produced by using different tobaccos and additives and involves different manufacturing practices. The global premium tobacco products market (henceforth referred to as the market studied) is segmented by product type, distribution channel, and geography. By product type, the market is segmented into Cigarettes, Cigars and Cigarillos, E-Cigarettes, and Others. Based on the distribution channel, the market studied is segmented into Online Retail Stores and Offline Retail Stores.
It provides an analysis of emerging and established economies across the, comprising North America, Europe, South America, Asia-Pacific, and the Middle East and Africa. For each segment, the market sizing and forecasts have been done based on value (in USD million).
| By Product Type | |
| Cigarettes | |
| Cigars and Cigarillos | |
| E-Cigarettes | |
| Others |
| By Distribution Channel | |
| Online Retail Stores | |
| Offline Retail Stores |
| By Geography | |||||||||
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Premium Tobacco Products Market Research FAQs
What is the current Premium Tobacco Products Market size?
The Premium Tobacco Products Market is projected to register a CAGR of 5.75% during the forecast period (2024-2029)
Who are the key players in Premium Tobacco Products Market?
Philip Morris Products S.A , British American Tobacco plc , SMOORE International , Arturo Fuente and Ashton Cigars are the major companies operating in the Premium Tobacco Products Market.
Which is the fastest growing region in Premium Tobacco Products Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Premium Tobacco Products Market?
In 2024, the North America accounts for the largest market share in Premium Tobacco Products Market.
What years does this Premium Tobacco Products Market cover?
The report covers the Premium Tobacco Products Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Premium Tobacco Products Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Premium Tobacco Products Industry Report
Statistics for the 2024 Premium Tobacco Products market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Premium Tobacco Products analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
