The US and global cigar markets are growing, as a worldwide demand for specialty products continues unabated. The surge in sales and interest first appeared in 2020 for a number of reasons. But a half-decade later, cigar enthusiasts are still propelling sales all over the globe. Here are some of the numbers behind the entrenched trend:
1. Total Sales Continue to Grow
Unlike so many other consumer products, particularly since the pandemic of 2020, sales of cigars have been on an upward track for almost five years. The US market is hovering around the $13 billion point, and annual domestic sales growth is expected to be 4.2% for the next five years at least.
One of the hallmarks of the current trend is the popularity of affordable and so-called “discount cigars” from many makers. Like so many other products that enjoy a surge in sales, cigars are seeing excellent sales across the board, from high-priced premium offerings to inexpensive, flavored versions of the product.
2. Flavor Expansion Spurs Global Sales
Flavored cigars are the stars of the market trend. Experts predict that sales will continue to grow at a compound annual growth well above 10% per year for the rest of the decade.
https://straitsresearch.com/report/cigar-market. In any industry, that’s an impressive number, and it’s thanks to cigar makers who are willing to deliver what new customers want—dozens of flavors, like cherry, barbecue, and banana.
3. Availability of Premium Brands Attracts New Customers
The sale of premium cigars is growing by about 5% per year, according to Forbes. The availability of premium brands is one of the many factors that attract media attention and consumer interest to the industry as a whole.
Part of the attraction of premium cigars is their identity as a luxury item in a global economy that is not so strong. Even folks on a limited budget, who usually purchase more affordable cigars from online sellers, have a tendency to buy a few top-notch cigars for special occasions or as gifts to close friends.
4. The Cuba Factor
Cuban cigar makers produce and sell about 120 million prized pieces of luxury per year, and many more of them are making it to the US marketplace. The presence of such excellent cigars on the domestic scene has spurred a renewed interest in finding them.
That attitude helps the entire cigar market by providing publicity and reminding people that life’s luxuries come in all sizes, shapes, and price points. Cigar enthusiasts all over the world are strangely fascinated by any box that boasts the “Made in Cuba” official tag. For US citizens, the ban on all Cuban products has turned the nation’s cigars into a once-in-a-lifetime pleasure.
Look for cigar sales to continue their solid growth for at least another decade. As the world becomes a more impersonal, digital place, consumers prefer the finer things in life. If that means enjoying a specialty or discount cigar every so often, then sales of all kinds of cigars should be on an upward trajectory well into the 2030s. This trend can be attributed to a rising appreciation for luxury and artisanal products, which cigars certainly fall under. More consumers are willing to spend on premium experiences that offer a sense of uniqueness and quality, away from the fast-paced digital world.
