Cigar - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

Cigar Market Analysis

The cigar market is expected to grow from USD 56.70 billion in 2025 to USD 59.73 billion in 2026 and is forecast to reach USD 77.39 billion by 2031 at 5.34% CAGR over 2026-2031. Manufacturers in the market benefit from the premium pricing of hand-rolled and limited-edition cigars, which enables them to effectively manage the impact of increased taxation and rising raw material expenses. The Asia-Pacific region exhibits remarkable market expansion, driven by its substantial population of high-net-worth individuals, the ongoing recovery in international tourism, and the growing cultural acceptance of cigars as prestigious luxury items. To maintain their market position, manufacturers are investing in developing tobacco varieties from specific geographical regions and implementing advanced storage technologies, which ensures product quality and supports their premium pricing strategies in the market.

Global Cigar Market Trends and Insights

Rising Popularity of Premium and Hand-Rolled Cigars

Premium handmade cigars represent a small but highly valuable segment of the total cigar market, with United States imports showing steady growth in the current year. This segment demonstrates remarkable resilience during economic uncertainty, as consumers maintain their luxury tobacco purchases while reducing expenditure in other categories. Nicaragua maintains its position as the primary exporter of handmade cigars, while the Dominican Republic has experienced substantial growth in exports, indicating a significant shift in supply chain dynamics beyond traditional Cuban production. The market continues to evolve as mass-market consumers increasingly transition to artisanal products, influenced by social media engagement and changing consumption preferences focused on premium experiences. The pricing landscape has notably shifted upward, with entry-level premium cigars commanding higher price points, as tobacconists implement price adjustments in response to increased manufacturing costs.

Product Innovation in Cigar Blends and Packaging

The Dominican Republic's tobacco manufacturing sector has demonstrated remarkable progress, reaching USD 1.14 billion in exports during 2023 . This achievement stems from substantial investments in advanced climate-controlled facilities and robust quality assurance systems that align with rigorous international standards. Taking inspiration from the wine industry, manufacturers carefully select and promote specific growing regions and vintage tobacco leaves, creating distinctive products that resonate with premium market segments. Through meticulous attention to curing and fermentation processes, producers develop refined flavor profiles that meet consumer preferences. The industry has also embraced innovative packaging solutions, implementing sophisticated moisture control mechanisms and secure tamper-evident seals. These advancements ensure consistent product quality across extensive distribution networks, particularly benefiting the growing e-commerce sales channels.

Stringent Tobacco Regulations and Advertising Restrictions Globally

The European Union's proposed tobacco taxation directive plans to increase cigar excise duties from EUR 12 to EUR 143 per thousand units, representing a potential 1,100% increase that may significantly impact medium-sized producers . The European Commission's tax harmonization initiative, set to take effect in 2028, aims to standardize rates across member states and incorporate new products, including heated tobacco, into existing regulatory frameworks . In the United States, Food and Drug Administration regulatory oversight imposes compliance requirements on premium handmade cigars, despite their small market share, requiring manufacturers to complete extensive approval processes for new products. Current advertising restrictions constrain brand development opportunities, particularly affecting boutique producers who depend on direct marketing channels. These regulatory requirements concentrate market influence among larger manufacturers with sufficient resources to manage compliance costs, potentially limiting innovation from smaller companies.

Other drivers and restraints analyzed in the detailed report include:

1. Rising Consumer Preference for Luxury and Status Symbol Products
2. Growth of Boutique and Artisan Cigar Brands
3. High Taxation on Tobacco Products in Many Regions

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

The traditional cigar segment maintains its market leadership with a substantial 59.68% share in 2025, demonstrating the enduring appeal of full-size cigars among consumers who value traditional smoking experiences. This dominance reflects deep-rooted brand loyalty within premium segments, where customers appreciate the craftsmanship and ritual associated with traditional cigars. Meanwhile, the cigarillo segment is experiencing robust growth, projected at a 6.21% CAGR through 2031. This growth is primarily attributed to changing consumer preferences, as cigarillos offer a more time-efficient smoking experience that accommodates modern lifestyle constraints and workplace smoking policies. The market received additional momentum when Swisher entered the cannabis segment in Michigan during October 2024, introducing blunts with hemp wrappers that circumvent FDA tobacco regulations.

The manufacturing landscape significantly influences market dynamics, with cigarillo producers benefiting from cost-effective automated production methods compared to the labor-intensive process of handmade traditional cigars. Premium cigar manufacturers have recognized this opportunity and are strategically expanding their product portfolios to include cigarillo variants, enabling them to capture a broader consumer base while preserving their premium brand positioning. The regulatory environment also shapes market development, as traditional cigar producers face higher compliance costs due to comprehensive FDA oversight, while cigarillo manufacturers operate under more streamlined approval processes. These market conditions indicate an ongoing convergence between segments, as consumers increasingly gravitate toward products that balance premium quality with convenience and shorter consumption times.

Non-flavored cigars accounted for a dominant 65.96% market share in 2025. This strong market position is attributed to traditional consumer preferences, which have remained consistent over time, and the regulatory advantages these products hold in regions with stringent flavor restrictions. Non-flavored cigars are often perceived as more authentic and closer to the original cigar experience, further solidifying their appeal among traditional consumers. Meanwhile, the flavored cigar segment is projected to grow at a compound annual growth rate (CAGR) of 6.53% through 2031. This growth is driven by manufacturers focusing on developing innovative products that align with regulatory requirements while catering to the evolving preferences of younger adult consumers who seek unique and diverse flavor options.

In the Philippines tobacco market, 58.49% of tobacco products feature flavor descriptors, with menthol being the most prominent category. This highlights a clear consumer preference for flavored tobacco products, which manufacturers are leveraging to expand their market presence. To address this demand, manufacturers are making strategic investments in advanced natural flavoring technologies and refined tobacco blending techniques. These innovations enable the creation of unique and appealing taste profiles that resonate with consumers while ensuring compliance with regulatory frameworks. Such efforts not only enhance product differentiation but also strengthen the competitive positioning of manufacturers in the market.

The Cigar Market Report is Segmented by Product Type (Cigarillos and Cigar), Flavor (Flavored and Non-Flavored), Price Point (Mass and Premium), Distribution Channel (Offline Retail Stores, and Online Retail Stores) and Geography (North America, Europe, Asia-Pacific, South America, and the Middle East and Africa). The Market Forecasts are Provided in Terms of Value (USD).

Geography Analysis

Asia-Pacific currently dominates the global premium tobacco market, commanding a substantial 54.21% market share in 2025. The region's market leadership is underpinned by its large consumer base, established distribution networks, and the cultural significance of premium tobacco products. Japan serves as a notable example of the region's evolving market dynamics, where a significant 52.6% decline in cigarette sales from 2011-2023 has created new opportunities for premium cigars to position themselves as luxury alternatives.

North America demonstrates the fastest market development, characterized by its mature premium cigar culture and sophisticated distribution infrastructure. The region's growth is supported by a well-established network of specialty retailers, knowledgeable consumers, and a strong presence of boutique brand manufacturers. The market benefits from consistent demand patterns and a regulatory environment that has historically accommodated premium tobacco products.

Other regions present diverse market opportunities and challenges. Latin American production regions maintain their significance, with the Dominican Republic achieving USD 1.14 billion in export value and Nicaragua producing 210.9 million units, leveraging their favorable growing conditions and manufacturing expertise. European markets face potential restructuring due to proposed taxation directives, which may lead to market consolidation among larger manufacturers. The Middle East and Africa regions show promise as emerging markets, with increasing demand driven by rising tourism and growing affluent consumer segments.

List of Companies Covered in this Report:

1. Scandinavian Tobacco Group A/S
2. Imperial Brands Plc
3. China National Tobacco Corp (CNTC)
4. Altria Group Inc
5. Burger Holding AG
6. British American Tobacco Plc
7. Philip Morris International Inc
8. PT Intertobacco Utama Industry
9. Japan Tobacco Inc
10. Villiger Sohne AG
11. Arnold Andre Cigars GmbH & Co KG
12. J Cortes Cigars NV
13. Continental Tobacco Corp.S.C.
14. Cia Canariense de Tabacos SA
15. Djarum PT
16. Tabacalera USA Inc
17. Joh. Wilh. von Eicken GmbH
18. Oettinger Davidoff AG
19. Swisher International Inc.
20. Corporacion Habanos SA

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support