Cigars And Cigarillos Market

The global cigars and cigarillos market is expected to see a decrease in both volume and value over the period from 2022 to 2030. Despite two years of growth, consumption decreased in 2022, with a slight descent over the review period. Russia remains the largest consumer and producer, while the United States leads in imports. The Dominican Republic is the top exporter with increasing export prices. Overall, the market is projected to continue its downward trend in the coming years.

Market Forecast

Depressed by shrinking demand for cigars and cigarillos worldwide, the market is expected to continue its downward consumption trend over the next eight-year period. The performance of the market is forecast to contract with an anticipated CAGR of -0.2% for the period from 2022 to 2030, which is projected to depress the market volume to 220M tons by the end of 2030.

In value terms, the market is forecast to contract with an anticipated CAGR of +2.0% for the period from 2022 to 2030, which is projected to bring the market value to $16,364.1B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Cigars, Cheroots And Cigarillos

After two years of growth, consumption of cigars, cheroots and cigarillos decreased by -6.5% to 224M tons in 2022. Over the period under review, consumption showed a slight descent. The pace of growth appeared the most rapid in 2018 when the consumption volume increased by 4.7%. Over the period under review, global consumption reached the peak volume at 271M tons in 2012; however, from 2013 to 2022, consumption failed to regain momentum.

The global cigars and cigarillos market size amounted to $14,001.2B in 2022, almost unchanged from the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, consumption, however, saw a relatively flat trend pattern. Global consumption peaked at $15,680.4B in 2013; however, from 2014 to 2022, consumption stood at a somewhat lower figure.

Consumption By Country

Russia (223M tons) remains the largest cigars and cigarillos consuming country worldwide, accounting for 100% of total volume.

In Russia, cigars and cigarillos consumption contracted by an average annual rate of -1.9% over the period from 2012-2022.

In value terms, Russia ($13,969.1B) led the market, alone.

From 2012 to 2022, the average annual growth rate of value in Russia was relatively modest.

In Russia, cigars and cigarillos per capita consumption plunged by an average annual rate of -1.9% over the period from 2012-2022.

Production

World Production of Cigars, Cheroots And Cigarillos

In 2022, production of cigars, cheroots and cigarillos decreased by -6.5% to 224M tons for the first time since 2019, thus ending a two-year rising trend. Overall, production showed a mild descent. The most prominent rate of growth was recorded in 2018 with an increase of 4.7% against the previous year. Global production peaked at 271M tons in 2012; however, from 2013 to 2022, production stood at a somewhat lower figure.

In value terms, cigars and cigarillos production soared to $22,582.6B in 2022 estimated in export price. Over the period under review, production, however, showed a remarkable increase. The pace of growth was the most pronounced in 2020 when the production volume increased by 238%. As a result, production reached the peak level of $27,409.4B. From 2021 to 2022, global production growth remained at a somewhat lower figure.

Production By Country

The country with the largest volume of cigars and cigarillos production was Russia (223M tons), accounting for 100% of total volume.

From 2012 to 2022, the average annual growth rate of volume in Russia totaled -1.9%.

Imports

World Imports of Cigars, Cheroots And Cigarillos

In 2022, overseas purchases of cigars, cheroots and cigarillos decreased by -3.3% to 97K tons for the first time since 2011, thus ending a ten-year rising trend. Over the period under review, imports, however, saw resilient growth. The growth pace was the most rapid in 2020 with an increase of 26%. Over the period under review, global imports reached the maximum at 100K tons in 2021, and then declined modestly in the following year.

In value terms, cigars and cigarillos imports declined to $3.2B in 2022. The total import value increased at an average annual rate of +4.1% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2017 with an increase of 14%. Global imports peaked at $3.2B in 2021, and then fell modestly in the following year.

Imports By Country

The United States prevails in imports structure, amounting to 68K tons, which was approx. 71% of total imports in 2022. It was distantly followed by Italy (7.7K tons), generating an 8% share of total imports. Germany (3.4K tons), Spain (1.9K tons) and Belgium (1.9K tons) followed a long way behind the leaders.

Imports into the United States increased at an average annual rate of +13.8% from 2012 to 2022. At the same time, Italy (+48.0%) and Belgium (+8.9%) displayed positive paces of growth. Moreover, Italy emerged as the fastest-growing importer imported in the world, with a CAGR of +48.0% from 2012-2022. Germany and Spain experienced a relatively flat trend pattern. From 2012 to 2022, the share of the United States and Italy increased by +22 and +7.6 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United States ($1.4B) constitutes the largest market for imported cigars, cheroots and cigarillos worldwide, comprising 45% of global imports. The second position in the ranking was held by Germany ($203M), with a 6.4% share of global imports. It was followed by Italy, with a 5.8% share.

From 2012 to 2022, the average annual growth rate of value in the United States stood at +8.5%. The remaining importing countries recorded the following average annual rates of imports growth: Germany (+3.7% per year) and Italy (+28.3% per year).

Import Prices By Country

The average cigars and cigarillos import price stood at $32,543 per ton in 2022, almost unchanged from the previous year. In general, the import price, however, saw a abrupt decrease. The most prominent rate of growth was recorded in 2017 an increase of 4.8%. Over the period under review, average import prices reached the peak figure at $54,517 per ton in 2012; however, from 2013 to 2022, import prices failed to regain momentum.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Spain ($76,268 per ton), while the United States ($20,663 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Germany (+3.1%), while the other global leaders experienced a decline in the import price figures.

Exports

World Exports of Cigars, Cheroots And Cigarillos

In 2022, overseas shipments of cigars, cheroots and cigarillos decreased by -8.4% to 81K tons for the first time since 2013, thus ending a eight-year rising trend. Over the period under review, total exports indicated a noticeable expansion from 2012 to 2022: its volume increased at an average annual rate of +4.3% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The growth pace was the most rapid in 2020 with an increase of 13% against the previous year. Over the period under review, the global exports hit record highs at 89K tons in 2021, and then contracted in the following year.

In value terms, cigars and cigarillos exports contracted modestly to $2.9B in 2022. The total export value increased at an average annual rate of +2.9% over the period from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The growth pace was the most rapid in 2021 with an increase of 9.8%. As a result, the exports reached the peak of $3.1B, and then shrank slightly in the following year.

Exports By Country

In 2022, the Dominican Republic (50K tons) was the main exporter of cigars, cheroots and cigarillos, generating 62% of total exports. Nicaragua (8.5K tons) took the second position in the ranking, followed by Germany (4.7K tons). All these countries together held near 16% share of total exports. The following exporters - Indonesia (3K tons), Belgium (2.9K tons), Hungary (1.9K tons), Honduras (1.8K tons), Cuba (1.6K tons) and Spain (1.5K tons) - together made up 16% of total exports.

Exports from the Dominican Republic increased at an average annual rate of +7.5% from 2012 to 2022. At the same time, Hungary (+12.1%), Nicaragua (+5.9%), Germany (+4.4%), Indonesia (+2.9%) and Spain (+2.0%) displayed positive paces of growth. Moreover, Hungary emerged as the fastest-growing exporter exported in the world, with a CAGR of +12.1% from 2012-2022. Cuba experienced a relatively flat trend pattern. By contrast, Belgium (-3.1%) and Honduras (-5.4%) illustrated a downward trend over the same period. From 2012 to 2022, the share of the Dominican Republic and Nicaragua increased by +16 and +1.5 percentage points, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the Dominican Republic ($917M) remains the largest cigars and cigarillos supplier worldwide, comprising 31% of global exports. The second position in the ranking was held by Nicaragua ($405M), with a 14% share of global exports. It was followed by Belgium, with a 13% share.

From 2012 to 2022, the average annual growth rate of value in the Dominican Republic totaled +8.5%. In the other countries, the average annual rates were as follows: Nicaragua (+12.4% per year) and Belgium (+0.7% per year).

Export Prices By Country

The average cigars and cigarillos export price stood at $36,014 per ton in 2022, increasing by 4% against the previous year. Over the period under review, the export price, however, recorded a slight setback. The pace of growth appeared the most rapid in 2013 an increase of 10%. As a result, the export price attained the peak level of $45,138 per ton. From 2014 to 2022, the average export prices remained at a lower figure.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Cuba ($209,673 per ton), while the Dominican Republic ($18,212 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Nicaragua (+6.1%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform