Europe Cigars & Cigarillos Market Outlook, 2028

Cigars and cigarillos are niche products within a much larger manufactured tobacco market and constitute enjoyment products, which contribute only marginally to smoking prevalence across the Europe. European culture surrounding cigars and cigarillos is a reflection of the continent's rich history and diverse traditions. Cigars and cigarillos have woven themselves into the social life of many European societies, embodying various customs and rituals that vary from one region to another. Globally, the WHO European Region has the highest prevalence of tobacco smoking among adults (28%), including one of the highest smoking prevalence rates among women (19%). In addition to causing illness and death, tobacco is a driver of health inequities. In the European Union, extensive tobacco control measures regulate the production, trade, packaging and advertising of tobacco products. Specifically, the Tobacco Products Directive (Directive 2014/40/EU) lays down rules governing the manufacture, presentation and sale of tobacco and related products, including cigars and cigarillos. According to the European Cigar Manufacturers Association, the market for cigars and cigarillos continues to decline across Europe (from 10 billion sticks in 2011 to 8.85 in 2020) with no signs that this trend will reverse anytime soon. According to the research report "Europe Cigars and Cigarillos Market Outlook, 2028," published by Bonafide Research, the market is anticipated to reach at more than USD 13 Billion by 2028. In recent years, Europe has witnessed a notable resurgence in the consumption of cigars and cigarillos, leading to a substantial expansion of the market for these tobacco products. One prominent trend in the European cigar and cigarillo market is the growing interest in premium and artisanal options. This demand for premium cigars can be attributed to a desire for authenticity, craftsmanship, and unique flavors, in contrast to more mass-produced alternatives. As a result, many exclusive cigar lounges, specialty shops, and online retailers now cater to this discerning clientele, offering an array of choices that cater to diverse tastes and preferences. Moreover, the concept of pairing cigars and cigarillos with complementary beverages and culinary experiences has gained popularity. Many European enthusiasts appreciate the art of pairing cigars with fine wines, spirits, coffee, and even artisanal chocolates, creating a sensory journey that elevates the overall enjoyment. This trend has fostered the growth of cigar-friendly establishments and exclusive venues that provide a sophisticated environment for such pairings. Cultural significance also plays a pivotal role in the resurgence of cigar and cigarillo consumption in Europe. Cigars have long been associated with celebrations, rituals, and special occasions across various European countries. In some regions, cigars are an integral part of traditional ceremonies, and in others, they are symbols of success and prosperity. This cultural connection continues to drive interest and consumption among different demographic groups. Another trend that has contributed to the market's growth is the emergence of cigar and cigarillo events, such as festivals, tastings, and exhibitions. These gatherings provide enthusiasts with opportunities to connect, share their passion, and discover new brands and blends. Cigar and cigarillo events have become a vibrant part of the social calendar in many European cities, fostering a sense of community among aficionados. Smoking regulations and health awareness campaigns have led to changes in smoking behavior, with a growing emphasis on responsible and moderate consumption. This has influenced the market as well, with more consumers seeking alternatives like cigarillos, which offer a shorter and often milder smoking experience.

On the basis of geography, the market is segmented into Germany, United Kingdom, France, Spain, Italy, and Russia. Germany dominates the market in 2022. Tobacco taxes in Germany are among the lowest in Europe. Germany ranks last on the Tobacco Control Scale and has sometimes been referred to as the "smoker's paradise" of Europe. Cigarettes, cigarillos and cigars as well as pipe and fine cut tobacco are among the traditional smoking tobacco products in Germany, but smokeless products such as snuff and chewing tobacco also have a long tradition in this country. Smoking in the United Kingdom involves the consumption of cigarettes and other forms of tobacco in the United Kingdom, as well as the history of the tobacco industry, together with government regulation and medical issues. According to the Cancer Research UK, there are 14% of adults who currently engaged in smoking. Along with this, smoking is the largest cause of cancer in UK with 15% of the overall diseases. In France, the consumption of cigars and cigarillos is deeply ingrained in the country's cultural and social fabric. While France is renowned for its appreciation of fine wine and cuisine, it also boasts a long history of cigar and cigarillo consumption, with a distinctly French touch. The French cigar culture has been intertwined with the country's rich traditions of art, literature, and intellectual discourse for centuries. Cigar and cigarillo smoking in Italy is frequently associated with gatherings of friends and family, where the act of lighting up becomes a social ritual, promoting camaraderie and the sharing of stories. Italian tobacco aficionados have a preference for a wide array of cigars, both domestic and imported, valuing the craftsmanship and flavor profiles of brands like Toscano, which have become emblematic of Italian cigar culture. The market is segmented based on the Types into Cigar, Cigarillos, and Little Cigars. Cigars often hold a significant market share in various European countries, and this could be due to cultural factors, traditions, and preferences among consumers. Cigarillos, which are smaller and often more affordable than full-sized cigars, also have their own share of the market, appealing to a different segment of consumers. Little cigars, which are even smaller than cigarillos, have a smaller market share, but they still have their own niche of consumers. Based on the flavor, the market is segmented into Tobacco (no flavor) and Flavored. In the realm of cigar and cigarillo consumption, a notable consumer preference emerges for tobacco-flavored variants over other flavors. This inclination towards tobacco-centric flavors can be attributed to the deep-rooted appreciation for the natural and robust taste of tobacco itself, which is often perceived as the quintessential essence of these products. Tobacco enthusiasts find pleasure in the authentic, earthy, and sometimes complex flavors that come with traditional tobacco blends, valuing the rich and genuine experience they offer. Furthermore, the mature and sophisticated image associated with tobacco-flavored cigars and cigarillos, along with the belief that these products may be less adulterated or artificially flavored, contributes to the sustained popularity of this classic, unadulterated taste. While flavored options may have their appeal, the enduring preference for tobacco-flavored cigars and cigarillos underscores the timeless allure of the pure, unembellished tobacco experience among consumers. The European market for cigars and cigarillos has indeed witnessed an emerging trend towards flavored varieties in recent years. This shift in consumer preferences can be attributed to several factors. Flavored cigars and cigarillos offer a diverse and novel range of tastes and aromas, catering to a broader spectrum of consumers, including those who may not have traditionally been cigar or cigarillo enthusiasts. These flavored options often come in a variety of enticing flavors, such as fruit, dessert, or cocktail-inspired profiles, adding an element of novelty and experimentation to the smoking experience. Additionally, the perception that flavored options may be milder or less harsh than their non-flavored counterparts can be appealing to some individuals, particularly those new to cigar or cigarillo smoking. On the basis of price range, the market is distinguished into Mass and Premium Ranges. In recent times, European consumers have displayed a notable inclination towards purchasing cigars and cigarillos from the mass market range, often driven by affordability and accessibility. However, there is an emerging and transformative shift in consumer preferences that is gradually steering the market towards the premium range of these products. This shift can be attributed to changing socio-economic factors, as well as a growing appreciation for higher-quality, well-crafted, and artisanal offerings. European consumers are increasingly seeking out premium cigars and cigarillos for a more sophisticated and refined smoking experience, valuing the finer craftsmanship, distinctive flavor profiles, and exclusive brands that come with premium products. The desire for a more exclusive and luxurious smoking experience, often associated with premium ranges, reflects a broader trend of discerning consumer choices, with a focus on quality and prestige. As this shift unfolds, it may reshape the landscape of the European cigar and cigarillo market, with premium offerings gaining a more prominent position alongside the mass market options. According to the distributional channels, the market is segmented into Specialty Store, Hypermarket/supermarket, Convenience Stores, Online, and Others. Specialty stores have traditionally dominated the market for cigars and cigarillos in various regions, including Europe, offering a wide selection, expertise, and an immersive environment for cigar enthusiasts. Hypermarkets and supermarkets have also held a significant share, providing convenience for customers looking to purchase these products alongside their regular grocery shopping. Convenience stores have catered to on-the-go buyers. However, in recent years, a noticeable transformation has occurred with the exponential growth of online sales. Many cigar and cigarillo brands have recognized the potential of e-commerce, making their products readily available on their websites and through dedicated online retailers. This shift has been driven by changing consumer habits, a desire for convenience, and the ability to access a diverse range of products without leaving the comfort of one's home. As a result, the online channel has seen a substantial increase in sales, allowing consumers to explore, compare, and purchase cigars and cigarillos with ease, thereby reshaping the distribution landscape and offering greater accessibility to enthusiasts. This trend showcases the adaptability of the cigar industry to the evolving retail landscape and the importance of an online presence for brands seeking to reach a broader audience. Companies Covered in this report: Scandinavian Tobacco Group A/S, PT Djarum, Imperial Tobacco Group plc, The Japan Tobacco Inc., ITC Limited, Villiger Sohne AG, Arnold Andre GmbH & Co. KG, Maya Selva Cigars, Philip Morris International Inc. Considered in this report: • Geography: Middle East and Africa • Historic year: 2017 • Base year: 2022 • Estimated year: 2023 • Forecast year: 2028

Aspects covered in this report: • South America Cigars and Cigarillos market Outlook with its value and forecast along with its segments • Country-wise Cigars and Cigarillos market analysis • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation Country covered in the report: • Germany • United Kingdom • France • Spain • Italy • Russia By Type: • Cigars • Cigarillos • Little Cigars By Flavour: • Tobacco/ No Flavour • Flavoured By Price Range: • Mass • Premium By Distribution Channel: • Speciality Store • Hypermarket/supermarket • Convenience Stores • Online • Others The approach of the report: This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Cigars and Cigarillos industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.