Smoking tobacco achieved strong retail growth in 2021 following the decline the category suffered in 2020. A growing number of cigarette smokers are shifting to smoking tobacco products, particularly fine cut tobacco, which is used to roll one’s own cigarettes.
Some stockpiling was evident in cigars and cigarillos during 2020 at the announcement of the first COVID-19-related lockdown. Afficionados of these products wanted to make sure they had sufficient stock at home, especially since non-grocery retailers and shopping centres were closed during the March-April 2020 lockdown.
The COVID-19 pandemic and restrictive measures led to the closure of entertainment and consumer foodservice establishments during 2020 and 2021. This, together with social distancing measures, led to a shift towards smoking cigars at home.
Cigars, cigarillos and smoking tobacco is expected to return to record robust retail volume sales and strong retail value growth throughout the forecast period. Cigars are unlikely to be affected by any economic turbulence as most users are wealthy middle-aged men who are not expected to have budget constraints or change their consumption habits.
More smokers are expected to either quit smoking cigarettes or shift towards other tobacco categories, including smoking tobacco, in the forecast period. Most notably, fine cut tobacco is set to see growing popularity amongst previous cigarette users due to the affordability of such products.
Forecourt retailers began to emerge as an important channel for premium cigars and cigarillos in 2021 as shopping centres and large commercial centres (which typically accommodate outlets of the popular cigar chain Premium Cigars and Tobacco) remained closed for significant portions of the year. With consumers unable to visit tobacco specialist retailers located in shopping centres for much of the pandemic, forecourt retailers started stocking premium cigars, noting a chance to gain share.
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Cigars, Cigarillos and Smoking Tobacco
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