Over the forecast period, cigars, cigarillos and smoking tobacco is expected to record a slightly positive performance in current value terms, with volume sales also expected to rise across all categories except pipe tobacco. Demand for cigars and cigarillos is expected to remain strong over the forecast period, and will remain more immune to the competition from smokeless tobacco, e-vapour products, and heated tobacco products than cigarettes.
Despite strict legal restrictions on marketing covering all tobacco products, manufacturers of fine cut tobacco are predicted to focus on product innovation to widen their target audience, notably through products that undercut economy cigarette brands on price, as ongoing price sensitivity is likely to drive further migration from cigarettes. However, the category is expected to experience price polarisation, with premium fine cut tobacco also set to perform well.
Due to stricter legislation on advertising in stores, digital platforms, and also at events, the distribution of cigars, cigarillos and smoking tobacco is likely to become more restricted to specific channels, thereby encouraging manufacturers to increasingly focus on e-commerce. Promotional activities will likely remain restricted and highly monitored, and new legislation will ban tobacco advertising in stores, kiosks, digital platforms, and also at events.
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Cigars, Cigarillos and Smoking Tobacco
This report originates from Passport, our Cigars, Cigarillos and Smoking Tobacco research and analysis database.
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