Advancing Urban Lifestyles To Drive Growth In The Global Cigars And Cigarillos Market
Cigars and cigarillos are tobacco products made from dried and fermented tobacco which is wrapped inside tobacco leaves or a tobacco-based wrapper. They are consumed either by smoking or chewing. Some key advantages of cigars and cigarillos are the mellow and smooth flavors they provide compared to cigarettes. They are associated with advancing lifestyles as their consumption is seen as a way of relaxation and leisure in urban social settings.
The global Cigars and Cigarillos Market is estimated to be valued at US$ 18.83 Bn in 2023 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Manufacturers are focusing on introducing a wide variety of premium varieties with unique blend of tobaccos and flavors to attract the young adult demographics. Product innovation is another trend with players launching organic, flavored and filtered cigarillo varieties. The legalization of recreational cannabis in various regions has also boosted the demand as cigarillos or blunt wraps are preferred for consumption of cannabis.
Porter’s Analysis:
Threat of new entrants: The threat of new entrants is low as the market is already dominated by large established players with high capital requirements and established brand values. The switching costs are also high for customers.
Bargaining power of buyers: The bargaining power of buyers is high as the market has many established brands to choose from. Buyers can negotiate on price if they purchase large volumes.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as the key raw materials required are agricultural commodities whose prices can fluctuate. However, suppliers do not have control over established brand names.
Threat of new substitutes: The threat of new substitutes is moderate as tobacco alternatives like e-cigarettes are gaining popularity. However, cigars and cigarillos have a different experience which offsets the threat.
Competitive rivalry: British American Tobacco and Imperial Brands dominate the market with high competitive rivalry among key established players.
Key Takeaways:
The Global Cigars And Cigarillos Market Size is expected to witness high growth, exhibiting a CAGR of 4.6% over the forecast period, due to increasing premiumization worldwide. The market size for 2023 is estimated at US$ 18.83 Bn.
The North America region dominated the market in 2022 with a share of over 35%, followed by Western Europe. The increasing social acceptance of cigars and established customer base is driving growth in these regions. The Latin America region is expected to witness fastest growth during the forecast period owing to rising incomes and socializing culture.
Key players operating in the Cigars and Cigarillos market are British American Tobacco, Imperial Brands, Plc., Altadis S.A., Habanos S.A., Drew Estate LLC, Swisher International, Inc., Oettinger Davidoff AG., Swedish Match AB, and Trendsettah USA, Inc. British American Tobacco and Imperial Brands dominate the global market.
For more Insights, Read –
https://www.newswirestats.com/cigars-and-cigarillos-market-trends-size-and-share-analysis/
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