Good news for the cigars and cigarillo market–Zion Market Research is forecasting accelerated growth by 2024. Zion Market Research latest report explored the growth popularity of cigars and cigarillos among young and adult people and how these products are now considered a status symbol, sparking a growing increase in purchases and use.
Lower taxes on cigar and cigarillo products is also expected to fuel growth globally. With cigars and cigarillos being embraced by celebrities like Snoop Dogg, who will be releasing his own premium cigar brand named Executive Branch, these products are being accepted more by consumers than they were in the past. Increasing government regulation, smoking ordinances and regulation on advertising will restrain cigarillo and cigar growth globally.
The study breaks down the cigar and cigarillo market into three categories: little cigars, cigars and cigarillos. Of these groups, cigarillos accounted for the largest category segment due to its availability and low prices. The global market is split into two categories: premium and mass. Of these, premium is found to have more share of the global market. Premium products are found to be growing in China, the U.S. and UAE. The research also explores the different flavor of products on the market and found that mint flavor has the largest market share. Fruit flavor is expected to dominate the market in the future.
Despite the increase of regulations and rules imposed by the U.S. Food and Drug Administration (FDA), North America is the biggest region for cigars and cigarillos and has the best opportunity for growth. The Asia Pacific region is expected to boost the cigarillo and cigar market due to rising popularity among youth. China is also emerging as a popular region for cigarillo and cigar products. The U.S. is also emerging as a popular market for these products because of having a lower tax rate for cigarettes compared to other countries. This study suggested that cigarillos and cigarettes can expect growth since they are not controlled by the Family Smoking Prevention and Tobacco Control Act, which has banned the sell of nearly 20 cigarettes and flavored cigarettes in the U.S.
You can find a summary of Zion Market Research’s study by clicking here.