Cigar And Cigarillos Market (2025 - 2033) Size, Share & Trends Analysis Report By Product (Mass, Premium), By Flavor (Unflavored, Flavored), By Distribution Channel (Offline, Online), By Region (North America, Europe, APAC, Central & South America, MEA), And Segment Forecasts

Cigar And Cigarillos Market Summary

The global cigar and cigarillos market size was estimated at USD 54.79 billion in 2024 and is projected to reach USD 102.17 billion in 2033, growing at a CAGR of 7.2% from 2025 to 2033. The establishment of dedicated cigar lounges and the integration of cigar experiences within upscale hospitality settings play a crucial role in fostering a community and driving sustained demand.

A significant trend is the positioning of cigars as a luxury lifestyle product, associated with sophistication, relaxation, and celebration. This perception is further amplified by social media and influencer marketing, which showcase cigars as an aspirational indulgence. Moreover, the growing middle class in emerging economies, particularly in Asia and Latin America, represents a substantial consumer base with increasing purchasing power and a desire for high-quality, experience-driven products. The expansion of duty-free retail and specialized cigar lounges also enhances accessibility and provides platforms for product discovery and consumption. Furthermore, innovation in flavors, sizes, and packaging, particularly within the cigarillo segment, aims to attract new users and provide variety for existing ones.

Mass accounted for the largest share in 2024 in the global cigar and cigarillos market due to their affordability and consistency in delivering a strong, uniform taste of tobacco. Global manufacturers produce cigars and cigarillos at a lower cost per unit by utilizing machine rolls, streamlined processes, and cost-effective raw materials, making them economical and popular among users. This is a major factor aiding the growth of the segment.

Another important factor that drives the increasing consumption of mass cigars across the globe is the growing consumption of smoking as a lifestyle change. The increased consumption of cigars is attributed to the fact that cigars and cigarillos are often perceived differently from regular cigarettes, often being used in social gatherings or special occasions. The unique experience of smoking a mass cigar, including the flavor, aroma, and the ritual of cutting and lighting, is increasing its demand. Furthermore, manufacturers are continuously innovating with new flavors and product offerings, which attract a broader audience, including younger adults. Thus, the increasing consumption of mass cigars would propel the growth of the market.

Consumer Insights for Cigar And Cigarillos Market

The age demographics of the cigar and cigarillos market reveal distinct preferences and behaviors among different age groups. Historically, cigars and cigarillos have been associated with older consumers, particularly those aged 35 and above. This demographic often includes middle-aged professionals who view cigars as a luxury item or status symbol. This group values the craftsmanship and tradition associated with premium cigars and tends to have higher disposable incomes, allowing them to consume these higher-priced items.

The increasing consumer preference for cigar lounges and clubs is a major trend in the market. These venues are designed to provide a welcoming and sociable atmosphere for cigar enthusiasts to enjoy their cigars. Cigar manufacturers are seizing the opportunity presented by the growing trend of cigar lounges and clubs by establishing their presence in these venues. For instance, in October 2023, Luciano Cigars entered the cigar lounge industry through a collaboration with LIT Cigar Lounge by inaugurating a cigar lounge in St. Louis, Missouri. The company successfully launched its first branded cigar lounge in late September and is now preparing to open a second one. Luciano Cigars intends to enhance its brand presence by partnering with renowned local cigar retailers to create and develop luxurious, branded spaces.

Product Insights

Mass cigar and cigarillos segment accounted for a revenue share of 77.9% in 2024. The preference for mass-category cigarillos among young consumers, particularly high school students, is influenced by several key factors, making these products more attractive compared to premium cigars. Initially, the affordability of mass-category cigarillos is a significant draw for younger demographics. These products are machine-made, which allows manufacturers to produce them at a lower cost compared to hand-rolled premium cigars. As a result, they are sold at a much lower price point, making them more accessible to budget-conscious young consumers who might not have the disposable income to spend on more expensive, premium tobacco products.

The 2023 National Youth Tobacco Survey revealed that nearly 65% of youth who smoke cigars prefer flavored cigars. Between 81% and 86% of youth and young adults who have ever used tobacco reported that their first tobacco product was flavored. As of now, there are no federal restrictions on flavors in other tobacco products, such as little cigars, cigarillos, and smokeless tobacco.

The demand for premium cigars and cigarillos is expected to grow at a CAGR of 8.8% from 2025 to 2033. Premium or luxury cigars feature premium tobacco with superior quality and are usually hand-rolled.  These cigars undergo prolonged aging, enhancing their flavors and improving the overall smoke experience. These luxury cigars are packed in high-end boxes or tubes at a higher price. Thus, rising demand for premium cigars on account of their superior quality and improvement in overall smoking experience is a major driving factor for the growth of the segment during the forecast period.

These cigars offer a unique selling point and set themselves apart. Companies leverage these opportunities to differentiate their luxury cigars from others, which aids in creating an exclusive identity. Companies focus on positioning themselves at the high end of the market by presenting these cigars as luxury products. The cultural significance and pleasure of cigars have led to their popularity in various countries worldwide. Countries such as Cuba and the Dominican Republic have a strong heritage in cigar production and consumption. These countries are well-known in the luxury cigar industry since they boast some of the world's finest cigars and are renowned for their premium tobacco leaves.

Flavor Insights

Flavored cigar and cigarillos market accounted for a share of 51.8% in 2024. One of the primary drivers of the flavored segment is the introduction of diverse and appealing flavored options. Manufacturers infused cigars and cigarillos with a range of flavors, from traditional notes such as vanilla and chocolate to other options such as fruit and spices. This variety not only attracts seasoned smokers but also appeals to new consumers, including younger millennials and women who may prefer flavored products. The sensory experiences offered by these innovations enhance the overall appeal of cigars and cigarillos, encouraging consumers to experiment and develop good brand loyalty. For instance, Gurkha Cognac Cigars infused with cognac offer a luxurious flavor experience that aligns with the premiumization trend in the market, attracting consumers looking for good quality, appetizing options.

The demand for unflavored flavored cigar & cigarillos is expected to grow at a CAGR of 7.0% from 2025 to 2033.  Key trends in this sector include a strong emphasis on premiumization, with a growing demand for hand-rolled, long-filler cigars crafted from high-quality, aged tobaccos from specific regions (e.g., Cuba, Nicaragua, Dominican Republic). Connoisseurship is a defining characteristic, with consumers increasingly focused on tobacco origins, intricate blending techniques, and limited-edition releases. The market also observes a steady rise in the popularity of full-bodied and complex flavor profiles, catering to experienced smokers who appreciate the nuanced natural tastes and aromas of tobacco, often consumed within dedicated cigar lounges or specialist tobacconists.

Distribution Channel Insights

The sales of cigars and cigarillos through the offline channel accounted for a share of 83.3% in 2024. Offline distribution channels include brick-and-mortar retail locations, specialty cigar shops, lounges, and other physical establishments where customers can personally visit to purchase cigars. Cigar & cigarillo purchases often involve a level of personalization, with customers seeking expert advice on selecting the right cigar. Brick-and-mortar cigar shops provide an environment where customers can interact with knowledgeable staff, receive recommendations, and even sample cigars before purchasing. Many cigar enthusiasts prefer to sample and taste cigars & cigarillos before committing to a purchase. Physical stores allow customers to engage in this experience, ensuring they are satisfied with their selection.

The sale of cigars and cigarillos through online channels is expected to grow at a CAGR of 8.9% from 2025 to 2033. The increase in online platforms provides a hassle-free shopping experience, allowing customers to explore, choose, and purchase cigars & cigarillos from the comfort of their own homes, which is a major factor driving the growth of the market. Extensive product descriptions, customer feedback, and educational content allow customers to make well-informed choices when selecting cigars & cigarillos. This transparency and easy access to information enrich the online shopping experience, assisting customers in choosing cigars that perfectly match their tastes and meet their expectations. Furthermore, subscription services have become a popular feature of online channels, delivering curated selections of luxury cigars directly to customers' doors. These services enhance the overall experience, providing customers with a steady supply of premium cigars and introducing them to new brands and flavors.

Regional Insights

The North America cigar and cigarillos market is expected to account for a share of 28.7% of the global revenue in 2024. A combination of cultural, economic, and regulatory factors drives the market for cigars and cigarillos in North America. One of the primary drivers is the shifting consumer preferences toward premium tobacco products. Unlike traditional cigarettes, cigars and cigarillos are often seen as luxury items associated with social status and a more refined smoking experience. This perception has been bolstered by the rise in disposable income among certain consumer segments, allowing more people to indulge in these premium products as part of their lifestyle choices. In addition, the growth in the number of cigar lounges and smoking bars, particularly in urban areas, has also fueled interest and consumption, providing consumers with spaces to enjoy these products socially.

U.S. Cigar And Cigarillos Market Trends

The U.S. accounted for an 83.1% share of the North America cigar and cigarillos market revenue in 2024. The key factor driving the market in the U.S. is the relative stability in the regulatory environment for cigars and cigarillos compared to cigarettes. While cigarette sales have been heavily impacted by stringent regulations and taxes aimed at reducing smoking rates, cigars and cigarillos have often been subject to less severe restrictions. This has allowed manufacturers to market these products more effectively, maintaining a steady demand. Furthermore, changes in regulatory laws are also driving the market for hand-rolled and machine-rolled luxury cigars in the U.S.

Europe Cigar And Cigarillos Market Trends

A significant trend fueling the European cigar and cigarillos market is the increasing consumption of these products among consumers, particularly in countries such as Sweden, Russia, and Poland. Moreover, psychological factors, such as tobacco dependency and social perceptions of smoking as a fashionable activity, are increasing the demand for cigars and cigarillos. The market is also seeing a rise in female smokers due to the changing lifestyle and the increasing social gatherings, which have led to a notable increase in cigar consumption among women.

The Italy cigar and cigarillos market is expected to witness a CAGR of 9.3% from 2025 to 2033. The growing entry of several new and established players in Italy is a primary factor driving the cigar and cigarillos market in the country. Furthermore, in Italy, the wide variety of price points in the market allows consumers from various economic backgrounds to access cigars and cigarillos. This diversity in pricing, from high-end luxury cigars to more affordable cigarillos, ensures that the market can appeal to both premium and budget-conscious consumers, which in turn is propelling the growth of the Italian cigar and cigarillos market.

Asia Pacific Cigar And Cigarillos Market Trends

The Asia Pacific cigar and cigarillos market accounted for the largest share of 49.8% of the global revenue in 2024. The market in the Asia Pacific region is experiencing robust growth, driven by several key trends unique to the region.  The primary factor contributing to this growth is the increase in disposable income across various countries, particularly in emerging markets such as China and India. It enables more consumers to attain higher levels of income, and there is a growing demand for premium and luxury products, including cigars and cigarillos. This shift in consumer preference towards increased consumption of cigars & cigarillos is also fueled by a desire for status symbols and a more sophisticated lifestyle. Thus, all these factors are aiding the growth of the market in the Asia Pacific region.

The increasing prevalence of high-end lounges and bars in metropolitan cities, where cigars and cigarillos are prominently featured, has also contributed to their popularity. These establishments often target a wealthy, urban clientele who view cigar smoking as a form of leisure and relaxation, akin to Western luxury habits.

The cigars and cigarillos market in Australia is expected to witness a CAGR of 8.3% from 2025 to 2033. The demand for cigars and cigarillos in the Oceania region is being driven by the growing popularity of flavored products among young consumers. Another factor contributing to the growth of the cigar and cigarillos market in Australia is the increasing number of female consumers who prefer flavored cigars. As more women are drawn to the variety of flavors available, the customer base for these products is expanding. Females are increasing the consumption of sweet tobacco flavors, such as Swisher Sweet and White Owl, which have dominated the market for generations. In contrast, newer flavored products such as Tatiana, Acid, and Java have helped drive up demand in recent years.

Central & South America Cigar And Cigarillos Market Trends

There is a cultural affinity for cigars in many parts of the region, particularly in countries with a strong tobacco heritage, such as Cuba, the Dominican Republic, and Nicaragua. This cultural significance, coupled with a growing middle class, have led to increased disposable income and a greater inclination toward cigars and cigarillos. These products are often associated with status and sophistication, their consumption is becoming more popular among affluent consumers.

Brazil is one of the world's leading tobacco producers. The Brazilian cigar and cigarillos industry has a long history, with the state of Bahia being one of the first to cultivate tobacco on a large scale in the world. The cigar industry's revival has been aided by new generations of cigar smokers and the rising demand for cigars & cigarillos, giving cigar manufacturing facilities a reason to make investments. The formation of communities and groups on social media platforms such as Facebook has aided the sharing of information about cigars & cigarillos, encouraging a new culture of cigar and cigarillos appreciation.

Middle East And Africa Cigar & Cigarillos Market Trends

The growing affluence of the Middle East population towards different tobacco products, particularly in countries such as Saudi Arabia and the UAE, is a major driver for the cigar and cigarillos market. Rising disposable incomes of consumers are providing a way to consume premium tobacco products as they are symbols of luxury and status. This factor is leading to the increased demand for cigars and cigarillos. Smoking cigars has become a popular social activity among high-income consumers, who view it as a mark of prestige, which is also a factor aiding the growth of the market in the Middle East and Africa region.

The Saudi Arabia cigar and cigarillos market is witnessing a CAGR of 9.9% from 2025 to 2033. The increasing emphasis of consumers on health and nutrition is a major driving factor for the growth of the market. The growing urbanization and development of affluent consumer segments have spurred interest in premium and luxury tobacco products. The rise in consumption of high-end lifestyle products, including premium cigars and cigarillos, is a major trend in the market. Moreover, cultural shifts towards more diverse and international lifestyles have contributed to a growing acceptance and consumption of cigars, which were previously less common in traditional Saudi society.

Key Cigar And Cigarillos Company Insights 

The global cigar and cigarillos market is characterized by the existence of global brands as well as local cigar and cigarillos, which has resulted in a high intensity of competitive rivalry. The world is also experiencing an upsurge in demand from females, which is coupled with changing lifestyles and increasing disposable income, which is assisting these key market participants in generating greater demand for their vast product portfolios.

Recent Developments

• In August 2024, Gurkha Cigar Group introduced an exclusive cigar called Fantasma, specifically for Specs, a Texas-based retailer. This limited-edition release features a unique blend of Nicaraguan and Dominican tobaccos, wrapped in a dark, oily San Andrés wrapper. The Fantasma is presented in a coffin-style box, with only 500 boxes available, each containing 10 cigars. This launch reflects Gurkha's commitment to offering premium and distinctive products tailored for select partners, enhancing the experience for cigar enthusiasts.

• In June 2024, Scandinavian Tobacco Group (STG) finalized an agreement to acquire Mac Baren Tobacco Co. from Halberg for DKK535 million (USD 76.87 million), a transaction set to be financed through available cash and debt. The acquisition was aimed at enhancing STG's position in the global smoking tobacco market, leveraging synergies from the integration of Mac Baren's operations and a focus on innovation and competitiveness.

• In April 2024, Gurkha Cigar Group launched a collection of six premium cigars for the travel retail market. The collection comprises the Gurkha Beauty, Cellar Reserve (15 Year), Cellar Reserve Edición Especial (18 Year), Cellar Reserve (15 Year) 10th Anniversary, Cellar Reserve 21 Year, and Gurkha 35th Anniversary, along with a stainless-steel cutter. The specialty box features copper-gold foil designs and Gurkha's iconic soldier figure with crossed swords. The box showcases the cigars through a window and is the perfect gift for travelers. This limited-edition product follows the success of a similar offer released in the U.S. during the 2023 holiday season and marks Gurkha's increasing focus on the travel retail market.

Cigar And Cigarillos Market Report Scope

Global Cigar And Cigarillos Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest trends and opportunities in each of the sub-segment from 2021 to 2033. For this study, Grand View Research has segmented the global cigar and cigarillos market report based on product, flavor, distribution channel, and region.

• Product Outlook (Revenue, USD Million, 2021 - 2033)

  • Mass

  • Premium

• Flavor Outlook (Revenue, USD Million, 2021 - 2033)

  • Unflavored

  • Flavored

• Distribution Channel Outlook (Revenue, USD Million, 2021 - 2033)

  • Offline

  • Online

• Regional Outlook (Revenue, USD Million, 2021 - 2033)

  • North America

    • U.S.

    • Canada

  • Mexico

    • Europe

    • Germany

    • UK

    • Spain

    • Italy

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa