Asia-Pacific Cigars & Cigarillos Market Outlook, 2028

Cigars and cigarillos have made their mark as popular items among fans throughout the Asia-Pacific region's long history of tobacco use. In Asia, tobacco has been grown and used for ages in a variety of ways. With considerable variations in consumption patterns, preferences, and legal frameworks between nations, the Asia-Pacific cigar and cigarillos industry is diverse and dynamic. In order to satisfy the diverse tastes of its customers, this market offers a wide variety of goods, from classic hand-rolled cigars to machine-made cigarillos. Premium cigar consumption has increased as a result of the region's expanding middle class and rising disposable income levels. Rich consumers are prepared to spend more on luxury, hand-rolled cigars. The popularity of flavour-infused cigarillos has grown as they appeal to customers who value a wide range of flavour options. In order to meet changing consumer tastes, producers are offering flavours like vanilla, citrus, and spices. The region's expanding middle class has seen a marked rise in discretionary income levels. Due to their increased income, consumers can now afford high-end goods like premium cigars and cigarillos. Many tourists come to the Asia-Pacific region, including those who want to experience the native cigar culture. Tourists frequently buy cigars and cigarillos as gifts or to enjoy while traveling, which helps the industry grow, especially in nations with robust tourism industries. The market for cigars and cigarillo presents fresh growth potential due to the region's quickly rising economies in Asia-Pacific. As more people move into the middle class, they start looking for luxury and aspirational goods, which can include cigars and cigarillos. A trend toward high-end and handcrafted cigars is now prevailing in the market. Sales in this category are boosted by discerning consumers' appreciation for the fine craftsmanship and distinctive flavour characteristics given by these high-end goods. International trade and market expansion have been assisted by trade agreements and international alliances, which have made it easier to export and import cigars and cigarillos within the region.

According to the research report, “Asia-Pacific Cigars and Cigarillos Market Outlook, 2028” published by Bonafide Research, the market is expected to grow with more than 5.5% CAGR from 2023 to 2028. The growth of e-commerce has made cigars and cigarillos more accessible to consumers. Online platforms offer a wide selection, convenience, and the opportunity to reach a broader customer base. The cigar industry has embraced social media and digital marketing to adapt to the digital era. Websites, social media platforms, and email marketing are used by cigar producers and merchants to interact with customers, share information about new goods, and run promotions. These digital platforms are now essential for attracting younger audiences and preserving brand recognition. Additionally, social media usage gives cigar enthusiasts a chance to network, exchange stories, and discover new flavour profiles and brands. Technological advancements have improved the production processes of cigars and cigarillos. Automated cigar rolling machines and digital quality control measures ensure consistency and precision in the manufacturing of these products. This has led to a higher standard of quality in machine-made cigars and cigarillos, making them more competitive in the market. The regulations governing tobacco use vary across the Asia-Pacific region. Regarding age restrictions, packaging, public smoking, and advertising, different nations have different laws. Manufacturers and distributors must navigate a challenging environment as a result of this regulatory variability. Many nations in the Asia-Pacific region's economies greatly benefit from the production and marketing of cigars and cigarillos. The job situation, export prospects, and way of life of those working in the industry are all impacted economically.

Based on report market is bifurcated into five major countries China, Japan, India, Australia and South Korea. Among them India is expected to grow at the fastest rate in Asia-Pacific region.

India has one of the biggest and fastest-growing populations in the world. There is a sizable consumer base looking to discover premium and luxury products, including cigars and cigarillos, due to a growing middle class and rising disposable incomes. Indian customers' preferences for lifestyle and leisure goods are changing as they grow more globalized and connected. This includes a rise in popularity for cigars and cigarillos as sophisticated and calming emblems. India has a long history of using hookah and other tobacco products. Urbanization and the acceptance of tobacco in culture both increase the demand for cigars and cigarillos, particularly among younger people. Rich cigar lounges and clubs are opening up in great numbers in India's major cities. These places give customers a laid-back and sociable setting to smoke cigars and cigarillos, which increases consumer interest in these goods. India is a well-liked tourist destination, and visitors from other countries are drawn to the nation's varied culture and traditions. Many visitors, particularly those from nations where cigars are popular, look for local cigar experiences, which helps the business, expand. Cigars have evolved into a status symbol for wealth and are frequently connected to social and professional networking. The smoking of cigars and cigarillos in social and professional situations has become more widespread in India, a country where networking and relationships are highly prized. The demand for premium and unique goods, including cigars, has increased as a result of the expansion of luxury lifestyle segments in India. The desire to indulge in opulent experiences and the ambitious middle class are the driving forces behind this trend. The de-mystification of the hobby has been aided by the growing availability of information and instructional tools about cigars. In turn, this has inspired more people to learn more about cigars and cigarillos.

In terms of type market is bifurcated into cigars, cigarillos and little cigars. Little cigars type is expected to grow at fastest rate in Asia-Pacific. Furthermore, based on flavour segment market is divided into tobacco/ no flavoured and flavoured.



Little cigars come in a variety of flavours, including menthol, fruit-infused, and exotic varieties. Customers in the Asia-Pacific region, who are increasingly seeking unusual and fresh smoking experiences, are catered to by these varied flavour alternatives. Little cigars are useful for smoking while on the road because of their smaller size. Consumers value goods that accommodate their hectic lifestyles in an urban environment that is becoming more and more fast-paced. Little cigars are a quick and simple way to smoke that fits nicely with the modernization and urbanization tendencies in the area. In some nations in the Asia-Pacific area, little cigars are becoming more popular. Similar to their larger cigar counterparts, they are frequently used in social settings and are regarded as a mark of sophistication and leisure. In terms of flavour of cigars and cigarillos, flavoured segment is expected to grow at significant rate in Asia-Pacific. A wide variety of taste profiles are available in flavoured cigars and cigarillos, including fruit, spice, coffee, and chocolate, among others. Customers wanting a distinctive and delightful smoking experience are drawn to these flavours. Products with flavours may draw in new customers to the cigar and cigarillo market, especially individuals who may not have previously considered smoking cigars. These items are approachable for a wider market due to their availability. Younger consumers, such as millennials and members of Generation Z, are frequently targeted in the marketing of flavoured cigars and cigarillos. The flavours appeal to younger people's palates and preferences, who are more willing to try new things.

Based on price range market is divided into mass and premium. Based on distribution channel market is segmented into speciality store, hypermarket/supermarket, convenience stores, online and others.

The middle class is expanding and the economy is growing throughout the Asia-Pacific area, which has led to a noticeable rise in disposable income. Consumers with more purchasing power are more inclined to spend money on luxury and premium goods, such as cigars and cigarillos. Premium cigars and cigarillos are known for their high standards of quality and craftsmanship, as well as their sophisticated smoking experience. For products that offer a better degree of quality and satisfaction, consumers are willing to spend more. Premium cigars, in particular, are frequently viewed as status and refinement symbols. Choosing to smoke a high-end cigar can be aspirational and indicative of one's social standing and way of life. Consumer tastes are evolving, and there is a growing interest in exploring the nuances of premium cigars and cigarillos. These products are known for their complex flavours and unique tobacco blends, appealing to those seeking a sophisticated taste experience. Furthermore, online distribution channel is expected to register highest growth rate in Asia-Pacific cigars and cigarillos market. In recent years, the Asia-Pacific area has seen a considerable increase in e-commerce. Consumers have grown increasingly comfortable with online shopping as internet access has expanded and cellphones have proliferated. This trend has spread to the tobacco sector, making it easier for people to shop for and buy cigars and cigarillos online. Online platforms offer a diverse assortment of cigars and cigarillos, including popular brands as well as specialized products. Consumers have access to a greater choice of options, such as various flavours, sizes, and blends that are not be readily available in physical locations.

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, Philip Morris International Inc.

Considered in this report:
• Geography: Asia-Pacific
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• Asia-Pacific 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:
• China
• Japan
• India
• Australia
• South Korea

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.