According to numerous surveys, although the consumers intended to quit smoking due to concerns about elevated health risks if they contracted COVID-19, however, led to increased cigar smoking.
New York, April 15, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Cigar Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06062843/?utm_source=GNW
This is attributed to consumers unable to deviate their minds in other things, ultimately leading to spending more money and time on their smoking habit. According to the government source, the world’s largest cigar producer, the Caribbean nation 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 towards products complimenting the opulent lifestyles parallel to the rapid growing premiumization of cigars has been lifting up the cigar market globally.
In addition, the government regulations related to tobacco and tobacco products further influences and remains a key factor 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 any advertisements and/or marketing for premium cigars.
Key Market Trends
Continuous Rise in Smoking Rates Boosting Sales of Conventional Cigars
As economic scenarios improve in the 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 opinion 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 cigar consumption in the United States and North America. Conventional cigar manufacturers are also conducting R&D activities to come up with better tobacco quality and new flavors, and are even investing to improve packaging in order to increase aesthetic appeal. For instance, in 2019 El Artista Cigars launched a range of new cigar with the brand name Buffalo TEN which claims to offer better tobacco quality with attractive packaging.
Asia Pacific holds the Largest Market Share
In the Asia-Pacific market, the consumption of conventional cigars is higher compared to premium cigars. This is because the tax rates for premium cigars are extremely high. The government bodies in the region like in India do not differentiate between the premium cigar, which is more of a luxury product, and other tobacco products, such as cigarettes and loose tobacco, which are addictive and very harmful. Further, the ban of e-cigarettes in the developed states 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 starting to smoke 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%. This higher price is therefore responsible for the large value generation of the tobacco market in the country, despite a decrease in the sales volume.
The global cigar market is highly consolidated and competitive with the strong presence of regional and global players in the market. In the market studied, well-established companies with a known brand attached to their business profile, have a higher penetration across retail shelves, mostly on account of business expansion and the presence of a higher share of consumer preference across both developed and developing markets. Some of the major players in the market studied are Swisher International Group, Imperial Brands PLC, Scandinavian Tobacco Group, and Altria Group Inc. among others.
Reasons to Purchase this report:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Read the full report: https://www.reportlinker.com/p06062843/?utm_source=GNW
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.
CONTACT: Clare: email@example.com US: (339)-368-6001 Intl: +1 339-368-6001