Cigar and Cigarillos Market to Grow to US$ 35.6 Bn by 2032 - Persistence Market Research

The global cigar and cigarillos market is projected to reach US$ 35.6 Bn by 2032, expanding at a CAGR of 4.4% from 2025 to 2032. The market, which was valued at US$ 26.3 Bn in 2025, is witnessing steady growth due to increasing consumer preference for premium tobacco products and growing innovations in packaging solutions.

Get a Sample PDF Brochure of the Report (Use Corporate Email ID for a Quick Response):
https://www.persistencemarketresearch.com/samples/3180

Key Growth Drivers

• Premiumization of Cigars: The demand for high-end, handcrafted cigars is on the rise as consumers seek luxury smoking experiences. Premium cigar brands focus on superior craftsmanship, aging techniques, and exotic tobacco blends to cater to discerning buyers.
• Flavored Cigars Gaining Traction: Flavored cigar and cigarillo sales are surging, particularly among young adult consumers. Fruity, dessert-inspired, and mint-flavored cigars appeal to new smokers, making this segment a major revenue generator.
• Growth in Duty-free Sales: Duty-free shops at airports, seaports, and border crossings are driving market growth. The segment is projected to witness a CAGR of 6.1% through 2032, as luxury travelers seek high-end cigars at tax-free prices.
• Expanding Digital Sales Platforms: E-commerce has played a pivotal role in making cigars and cigarillos more accessible. Online retailers offer customized assortments, subscription boxes, and exclusive collections, increasing consumer engagement.
• Celebrity Endorsements and Social Media Influence: The market benefits from high-profile endorsements and social media marketing, which boost brand visibility and attract younger demographics.

North America Leads the Market with Premium Product Offerings

• North America is set to hold a 34.6% market share in 2025, driven by a strong preference for premium and customized cigars.
• The region is anticipated to witness a CAGR of 6.3% through 2032, supported by rising disposable incomes and increasing cigar lounge culture.
• Supermarkets, specialty stores, and e-commerce platforms enhance the availability of premium cigar brands.
• Sustainability trends are shaping the industry, with a growing preference for organic and responsibly sourced tobacco.

Innovations in Cigar Packaging Boost Market Appeal

• Moisture-resistant and airtight packaging solutions ensure cigars maintain their freshness over long storage periods.
• Luxury packaging options, such as premium wooden boxes and metal tins, enhance brand value and attract affluent buyers.
• Portable packaging solutions, including individual cigar tubes and travel cases, cater to on-the-go consumers.
• Personalized and limited-edition packaging appeals to collectors and high-net-worth individuals.
Flavored Cigars and Cigarillos to Dominate Market Growth
• The flavored cigar segment is projected to grow at a CAGR of 5.5% through 2032, fueled by demand from younger consumers seeking unique taste experiences.
• The availability of fruit, mint, chocolate, and coffee flavors enhances appeal.
• Flavored cigars offer a customizable smoking experience, making them a preferred choice for casual smokers.
• The rise of flavored variants is reshaping the market landscape, with major brands launching innovative flavors.
• Example: El Septimo introduced its Culinary Art Collection at the PCA Trade Show in March 2024, blending fine cigars with wine culture.

Duty-free Sales to Continue Gaining Momentum

• Duty-free shops provide an opportunity for cigar brands to expand their global presence.
• Lower taxation and the absence of local duties make cigars more affordable for international travelers.
• The exclusivity of duty-free luxury retail attracts high-spending customers.
• Example: Qatar Duty Free collaborated with Habanos S.A. to launch the first Casa del Habano Pop-Up Shop, celebrating Cuban cigars.

Market Trends and Developments

• Specialty cigar lounges and exclusive smoking clubs are gaining traction, reinforcing cigars as a status symbol.
• The rise of eco-friendly cigars and sustainable tobacco farming reflects increasing consumer awareness of environmental impact.
• Regulatory developments, including stricter advertising laws and health warnings, continue to shape market strategies.
• Health-conscious consumers are driving demand for natural and additive-free cigars.
Challenges Restraining Market Growth
• High taxation on tobacco products increases prices, limiting affordability in certain markets.
• Growing regulatory scrutiny on flavored cigars may impact sales in key regions such as North America and Europe.
• Rise of alternative smoking products, such as e-cigarettes and vaping devices, may divert consumers away from cigars.

Market Expansion Opportunities

• Luxury lifestyle trends continue to drive cigar sales among millennials and Gen Z consumers.
• Brands are launching limited-edition collections to enhance exclusivity and create premium experiences.
• Example: Cohiba and Davidoff reported an increase in luxury cigar sales in 2023, reinforcing cigars as a luxury lifestyle choice.
• Increased cigar-related events and festivals enhance consumer engagement and brand awareness.
• The travel and tourism sector will significantly contribute to market growth as global borders become more fluid.

Competitive Landscape

Leading market players continue to innovate through flavor enhancements, premium packaging, and digital sales expansion. Key companies focus on sustainability, craftsmanship, and high-end offerings to maintain competitive advantage.

Recent Industry Developments

• In January 2025, Scandinavian Tobacco Group UK (STG UK) launched Signature Action Mix Mint and Berry Cigarillo, targeting convenience stores nationwide.
• In December 2024, Qatar Duty Free partnered with Habanos S.A. to introduce the Casa del Habano Pop-Up Shop, the first of its kind globally.

Key Companies Profiled

• Scandinavian Tobacco Group A/S
• Imperial Brands
• Habanos S.A.
• Drew Estate
• Swisher International, Inc.
• Oettinger Davidoff AG
• Swedish Match AB
• Gurkha Cigars
• El Artista Cigars
• Arnold André GmbH & Co. KG
• Dosal Tobacco Corporation

Market Segmentation

By Product Type
• Cigar
• Cigarillo
By Flavor
• Flavored
• Unflavored
• Fruit Flavor
• Mint
• Coffee
• Chocolate
• Others
By Sales Channel
• Hypermarkets/Supermarkets
• Specialty Stores
• Convenience Stores
• Duty-free Shops
• Online Retail
• Others
By Region
• North America
• Latin America
• Europe
• East Asia
• South Asia and Oceania
• Middle East and Africa

Contact Us:
Persistence Market Research
G04 Golden Mile House, Clayponds Lane
Brentford, London, TW8 0GU UK
USA Phone: +1 646-878-6329
UK Phone: +44 203-837-5656
Email: sales@persistencemarketresearch.com
Web: https://www.persistencemarketresearch.com

About Persistence Market Research:
At Persistence Market Research, we specialize in creating research studies that serve as strategic tools for driving business growth. Established as a proprietary firm in 25.92, we have evolved into a registered company in England and Wales in 2023 under the name Persistence Research & Consultancy Services Ltd. With a solid foundation, we have completed over 3600 custom and syndicate market research projects, and delivered more than 2700 projects for other leading market research companies' clients.

Our approach combines traditional market research methods with modern tools to offer comprehensive research solutions. With a decade of experience, we pride ourselves on deriving actionable insights from data to help businesses stay ahead of the competition. Our client base spans multinational corporations, leading consulting firms, investment funds, and government departments. A significant portion of our sales comes from repeat clients, a testament to the value and trust we've built over the years.

This release was published on openPR.