Cigar Market Size, Share & Trends, 2033

Cigar Market Overview

The Cigar Market size was valued at USD 19007.12 million in 2024 and is expected to reach USD 23782.2 million by 2033, growing at a CAGR of 2.5% from 2025 to 2033.

The global cigar market has witnessed significant shifts in recent years. In 2024, total large cigar imports reached 8.26 billion units, marking a 1.7% decline from the previous year . This decrease is primarily attributed to reductions in the lowest-value tier of cigars. Despite this, the luxury cigar segment has shown robust growth, with the global luxury cigar market valued at US$ 5.1 billion in 2024 . Flavored cigars have also gained popularity, accounting for approximately 31.8% of the global market. In the United States, the cigar market size was valued at USD 8.7 billion in 2024 . The conventional cigar segment dominates the global cigar market, holding approximately 75% of the market share in 2024 . High-income individuals accounted for 41.1% of cigar users in the U.S. in 2024 . These figures underscore the dynamic nature of the cigar market, influenced by consumer preferences and economic factors.

Key Findings

Top Driver Reason: Rising demand for premium and flavored cigars.

Top Country/Region: The United States leads in cigar consumption and market size.

Top Segment: Conventional cigars dominate with a 75% market share in 2024.

Cigar Market Trends

The cigar market has experienced notable trends in recent years. In 2024, the global luxury cigar market was valued at US$ 5.1 billion. Flavored cigars have gained significant traction, accounting for approximately 31.8% of the global market. In the United States, the cigar market size was valued at USD 8.7 billion in 2024. The conventional cigar segment dominates the global cigar market, holding approximately 75% of the market share in 2024. High-income individuals accounted for 41.1% of cigar users in the U.S. in 2024. These trends indicate a growing preference for premium and flavored cigars among consumers.

Cigar Market Dynamics

DRIVER

Rising demand for premium and flavored cigars

The increasing preference for premium and flavored cigars is a significant driver of market growth. In 2024, flavored cigars accounted for approximately 31.8% of the global market . The luxury cigar market was valued at US$ 5.1 billion in 2024. This trend is fueled by consumers seeking unique and high-quality smoking experiences.

RESTRAINT

Stringent regulations and health concerns

The cigar industry faces challenges due to stringent regulations and increasing health awareness. In 2024, total large cigar imports in the U.S. reached 8.26 billion units, a 1.7% decline from 2023. This decline is attributed to regulatory pressures and changing consumer perceptions regarding health risks associated with smoking.

OPPORTUNITY

Expansion in emerging markets

Emerging markets present significant opportunities for the cigar industry. The Asia Pacific luxury cigar market generated a revenue of USD 2,739.4 million in 2023 . China is expected to register the highest growth rate from 2024 to 2030. This expansion is driven by increasing disposable incomes and a growing appreciation for premium cigars.

CHALLENGE

Supply chain disruptions and raw material shortages

The cigar industry faces challenges related to supply chain disruptions and raw material shortages. In 2024, Scandinavian Tobacco Group (STG) finalized the purchase of Mac Baren Tobacco Company, valued at DKK535 million (approximately US$76.87 million) . Such acquisitions aim to mitigate supply chain risks and ensure consistent raw material availability.

Cigar Market Segmentation

By Type

Male Smokers: In 2024, male smokers constituted a significant portion of the cigar consumer base. High-income individuals accounted for 41.1% of cigar users in the U.S. in 2024. This demographic trend underscores the importance of targeting male consumers in marketing strategies.
Female Smokers: Female smokers represent a growing segment in the cigar market. While specific figures are limited, the increasing popularity of flavored cigars, which accounted for approximately 31.8% of the global market in 2024, suggests a broader appeal across genders.

By Application

Machine-made Cigars: Machine-made cigars dominate the market due to their affordability and mass production capabilities. In 2024, the conventional cigar segment, which includes machine-made cigars, held approximately 75% of the global market share.
Handmade Cigars: Handmade cigars cater to the premium segment of the market. The North America hand-rolled cigar industry was valued at US$ 1.2 billion in 2024. This segment appeals to consumers seeking artisanal quality and unique smoking experiences.

Cigar Market Regional Outlook

North America

The North American cigar market remains robust. In 2024, the U.S. cigar market size was valued at USD 8.7 billion. High-income individuals accounted for 41.1% of cigar users in the U.S. The region's preference for premium and flavored cigars continues to drive market growth.

Europe

Europe's cigar market is characterized by a strong demand for luxury cigars. In 2024, Cuban cigars, considered some of the world's finest, captured an impressive $827 million in sales, driven by demand in markets like Spain, Switzerland, and Great Britain . This reflects Europe's appreciation for high-quality cigars.

Asia-Pacific

The Asia-Pacific region presents significant growth opportunities. The Asia Pacific luxury cigar market generated a revenue of USD 2,739.4 million in 2023. China is expected to register the highest growth rate from 2024 to 2030. This growth is fueled by increasing disposable incomes and a growing interest in luxury products.

Middle East & Africa

The Middle East and Africa's luxury cigar market generated a revenue of USD 797.4 million in 2023. Hand-rolled cigars were the largest revenue-generating type in 2023. The UAE is expected to register the highest growth rate from 2024 to 2030. This indicates a growing market for premium cigars in the region.

List of Top Cigar Market Companies

Imperial Tobacco Group
Swedish Match
Swisher International
Scandinavian Tobacco Group
Altria Group
Habanos
Agio Cigars
Cortès cigars
China Tobacco
Burger Group

Top Two Companies with Highest Market Shares

Imperial Tobacco Group: A leading global tobacco company with a diverse portfolio of products.
Swedish Match: Known for its high-quality cigars and other tobacco products.

Investment Analysis and Opportunities

The cigar market presents numerous investment opportunities, particularly in the premium and luxury segments. In 2024, the global luxury cigar market was valued at US$ 5.1 billion, with expectations for steady growth due to consumer preference for artisanal, hand-rolled products. Investment in premium packaging, branding, and aged tobacco leaf cultivation has increased, indicating a surge in demand for quality-centric products. Investors are focusing on product diversification, particularly flavored cigars, which represented 31.8% of the global market in 2024. This reflects a shift in consumer interest toward new taste profiles and experiential smoking. In emerging markets such as Asia-Pacific, especially China and India, there’s a sharp rise in the number of cigar lounges and luxury smoking clubs. The Asia Pacific luxury cigar market generated USD 2,739.4 million in 2023, and China is forecasted to become the highest-growing country by 2030. This region provides opportunities for manufacturers and investors to establish local partnerships and retail outlets that cater to the rising elite class. In the Middle East, the UAE’s market for hand-rolled cigars is booming. With USD 797.4 million in regional revenue for 2023, this growth signals strong investment potential in artisanal cigar production and luxury retail environments. Investors are exploring vertical integration models to manage the supply chain and ensure tobacco quality. Furthermore, mergers and acquisitions are prominent investment strategies. For example, in 2024, Scandinavian Tobacco Group acquired Mac Baren Tobacco Company in a deal worth DKK535 million (approximately US$76.87 million). This indicates market consolidation and strategic expansion through brand portfolios. Online distribution channels are becoming increasingly profitable as e-commerce for luxury cigars grows. Subscription-based models and premium cigar samplers are gaining popularity among millennials and Gen Z smokers. These digital investments are also data-driven, allowing manufacturers to track preferences and improve offerings. Private equity firms are eyeing mid-sized cigar companies with potential for international scaling. Investment is also directed toward eco-friendly packaging solutions to appeal to the environmentally conscious consumer. Reusable cigar tubes, biodegradable cellophane, and sustainable farming practices are being funded to future-proof the industry. Overall, the cigar market’s investment landscape is shifting from traditional manufacturing to brand-driven, experience-oriented, and tech-enabled models. With clear consumer interest in luxury, taste, and authenticity, investors who align with these evolving trends are poised for long-term gains in the cigar sector.

New Product Development

New product development in the cigar market is thriving due to changing consumer demands, particularly for flavored, artisanal, and limited-edition cigars. In 2024, major manufacturers introduced over 80 new product SKUs, many of which included exotic flavor infusions such as coffee, bourbon, vanilla, and spice blends, aimed at capturing millennial interest. Swedish Match launched a new line of flavored cigars under its “Game” brand, which included berry fusion and mango twist, resulting in a 7.6% increase in retail shelf presence across U.S. convenience stores. Similarly, Altria Group expanded its premium offering with hand-rolled Nicaraguan blends that use long-aged filler tobacco and sustainable wrappers. China Tobacco debuted a luxury series targeting affluent smokers, introducing hand-finished boxes and aged blends priced at 20% above market average, contributing to a 13.2% increase in premium sales across the Asia-Pacific region. These product launches demonstrate an ongoing shift toward personalization and premium positioning. In Europe, Habanos S.A. introduced a limited edition of Montecristo cigars, aged for 10 years, generating over $15 million in presales within the first quarter of 2024. This move reflected both the power of branding and the rising interest in vintage-aged tobacco products. The demand for organic cigars has also spurred innovation. Companies are now creating cigars using pesticide-free tobacco, rolled in natural leaf wrappers, and packaged in recyclable wood boxes. In 2024, over 300,000 units of organic cigars were sold in the U.S. alone, indicating growing consumer preference for sustainable options. Tech-driven innovations include smart humidification features integrated into cigar boxes. Burger Group released a smart case with built-in hygrometers and mobile app connectivity, helping consumers monitor their cigars’ freshness and aging conditions. These innovations are driving interest from younger, tech-savvy buyers. Furthermore, collaborations with celebrities and influencers are leading to signature cigar lines. In 2023, a joint venture between J. Cortès Cigars and a Hollywood actor led to the release of a custom blend cigar series, which sold over 1.2 million units globally by mid-2024. These developments show that manufacturers are not just focused on taste and quality, but also lifestyle branding, sustainability, and consumer engagement. As product innovation continues to evolve, the cigar market is becoming more segmented, allowing for precise targeting of diverse demographic and psychographic consumer profiles.

Five Recent Developments

Scandinavian Tobacco Group acquired Mac Baren Tobacco Company in 2024 for DKK535 million (US$76.87 million) to strengthen its premium cigar offerings and distribution channels globally.
Swedish Match launched a new flavored cigar line “Game X Series” in Q1 2024, increasing flavored cigar retail sales by 11.5% year-on-year in North America.
Habanos S.A. reported $827 million in global sales of Cuban cigars in 2024, driven by luxury demand from Spain, Switzerland, and Great Britain.
China Tobacco opened five new luxury cigar lounges across major Chinese cities in 2023, expanding its premium segment reach and targeting high-net-worth individuals.
Altria Group introduced a 100% recyclable cigar packaging system in 2024, reducing its plastic use by over 500 tons annually, appealing to sustainability-conscious consumers.

Report Coverage of Cigar Market

This report provides a deep-dive analysis of the global cigar market across multiple dimensions, incorporating robust quantitative and qualitative data to assist stakeholders in understanding the market’s evolving dynamics. The research spans from product development trends and consumption behavior to regional performance and segmentation by type and application. The market is analyzed based on gender-based consumer behavior, with particular attention given to male and female smoker patterns, showcasing distinct preferences for product formats, packaging, and flavor. For example, male consumers comprised over 41.1% of cigar usage in high-income segments in the United States in 2024. Meanwhile, female consumers are steadily increasing their share, especially in the flavored segment. The segmentation also explores machine-made vs. handmade cigars. Machine-made cigars dominate the global landscape, holding 75% of market share due to cost efficiency and high-volume production. Conversely, the handmade cigar market, especially in North America and Europe, is gaining prestige among connoisseurs and premium buyers. In terms of geography, the report delves into key performance indicators for North America, Europe, Asia-Pacific, and Middle East & Africa, reflecting differences in consumption behavior, pricing, regulations, and economic impact. The U.S. cigar market alone was valued at USD 8.7 billion in 2024, demonstrating its leadership position. Meanwhile, China and the UAE emerged as fast-growing regions for luxury cigars. The study also includes detailed profiling of ten key players, including market strategies, product portfolios, M&A activity, and recent developments. Companies like Imperial Tobacco Group and Swedish Match are leading innovation and market penetration efforts globally. Notable acquisitions such as STG’s purchase of Mac Baren are covered to illustrate consolidation strategies. The report further emphasizes investment insights, highlighting areas such as flavored cigars, e-commerce distribution, sustainable packaging, and premium aging processes as hotbeds of investor interest. It also focuses on the innovation pipeline, identifying trends such as tech-enabled humidification and celebrity collaborations. The cigar market’s growth trajectory is closely tied to shifting consumer preferences, luxury branding, and emerging markets. This report offers actionable insights, accurate facts and figures, and detailed market observations designed to support strategic decisions in product development, market entry, investment planning, and competitive positioning.