In recent years, cigarillos benefited from consumers switching from cigarettes, as cigarettes prices increased and cigarillos benefited from comparatively lower taxation rates. Mainly since 2013, the category witnessed the entrance of several new players offering price fighter cigarillos, with easier to smoke (filtered) products of a similar length to cigarettes, some from renowned international brands, which attracted cigarette smokers looking for cheaper alternatives. However, this trend ended in 2015, as a substantial increase in taxation made cigarillos more expensive and led to a decline in volume sales.
Scandinavian Tobacco Group Iberia SA remained the clear leader in cigars and cigarillos, with a 55% retail volume share thanks to its strong Café Crème brand. The brand benefits from its dominance in cigarillos. Cigarillos is in turn the dominant product area in overall cigars.
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