The rising costs of living in the wake of the COVID-19 pandemic will continue to impact consumer preferences over the forecast period in favour of more affordable tobacco products. It is expected that sales of cigars, cigarillos and smoking tobacco will continue to decline over the forecast period in both retail volume and current value terms.
Lack of innovation and promotion within cigars, cigarillos, and fine cut tobacco means that these products will remain unable to compete with more innovative categories such as e-vapour products, as tobacco companies focus on expanding next-generation tobacco product sales. Attempts at introducing flavoured cigarillos have gained little traction since the ban on flavoured cigarettes due to a lack of awareness and the widespread availability of flavoured e-vapour products, which are more affordable and are perceived as healthier.
In distribution terms, cigars, cigarillos and pipe tobacco are primarily sold through convenience stores and small local grocers, but many smaller retailers find these products too expensive to stock, while online sales remain low.
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Cigars, Cigarillos and Smoking Tobacco
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