Global Cigar and Cigarillos Market Size Likely to Grow at a CAGR of 8.17% By 2034

Market Size and Growth

As per the Cigar and Cigarillos Market size analysis conducted by the CMI team, the cigar and cigarillos market is expected to record a CAGR of 8.17% from 2025 to 2034. In 2025, the market size was USD 59.88 Billion. By 2034, the valuation is anticipated to reach USD 120.71 Billion.

Overview

As per the industry experts at CMI, the global cigar and cigarillo market will witness a pretty decent CAGR between 2025 and 2034. This could be attributed to growing demand for premium tobacco products due to lifestyle trends and rising social acceptance, along with relaxed regulations in certain economies. Also, the availability of extensive rail networks and e-Commerce platforms has strengthened the market reach. In November 2024, Crowned Heads did release the Moose Click, a novel exclusive for the market of Canada.

Key Trends and Drivers

• Relaxation of Regulations in Certain Economies to Spell Growth: Producers are gaining tremendous promotional opportunities followed by robust customer engagement due to markets where rules regarding flavored varieties, advertising, or smoking zones exist in the softened form. Along these lines, in August 2025, British Columbia let cannabis use on public patios where vaping and tobacco are allowed, thereby aligning the cannabis rules with the smoking regulations.

• Growing Social Acceptance to Catalyze Growth: Rising social acceptance is emerging as one of the key drivers of the cigar and cigarillo market. The present-day scenario is such that consumption of cigars is increasingly integrated into celebrations, social occasions, and leisure activities. Expansion of cigar lounges, dedicated outdoor smoking areas, and curated tasting events are reinforcing the cultural shift mentioned above, thereby widening the consumer base and improving the relevance of the market in contemporary lifestyle settings.

Report Scope

SWOT Analysis

• Strengths: Cigars are usually linked with wealth, luxury, and success, thereby making them desirable for exclusive occasions. Also, there is a rising trend toward luxury, premium, and handcrafted cigars and cigarillos, which caters to consumers opting for high-class smoking experiences. The manufacturers are launching a broad range of flavors (vanilla, candy, and fruit) for attracting new consumers. Also, a rising consumer base, especially youth in Asia Pacific, is contributing to the strengths.

• Weaknesses: Growing awareness amongst the public along with concern over health risks linked with tobacco products is likely to adversely affect the market. Also, certain economies are perceiving tobacco in the negative sense, which may hamper the revenue. This is the major weakness of the cigar and cigarillos market.

• Opportunities: Continual innovation in cigar types (figurado, parejo) and quality of product are likely to attract a broader spectrum of consumers. Increased luxury cigar lounges in restaurants and hotels do create unique environments for the consumers to enjoy cigars. Leveraging the online platforms for marketing and sales could reach the new segment of consumers, especially the ones who are online junkies.

• Threats: Increase in the sternness of regulations and potential bans on smoking in public places could restrain consumption and access. Raised health consciousness quotient could result in a declination in demand for tobacco products. This is one of the biggest threats to the market.

List of the prominent players in the Cigar and Cigarillos Market:

• Burger Holding AG
• British American Tobacco
• Gurkha Cigars
• JT International SA
• Imperial Brands plc (Habanos S.A.)
• Oettinger Davidoff AG
• Scandinavian Tobacco Group A/S
• Swedish Match AB
• Philip Morris International Inc.
• Swisher International Inc.
• Others

The Cigar and Cigarillos Market is segmented as follows:

By Product

• Mass
• Premium

By Flavor

• Unflavored
• Flavored

By Distribution Channel

• Offline
• Online

Regional Coverage:

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Russia
• Italy
• Spain
• Netherlands
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Taiwan
• Rest of Asia Pacific

The Middle East and Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East and Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America