Cigars and cigarillos were especially negatively impacted by restrictions imposed to curb the spread of COVID-19 in 2020. In fact, pre-pandemic, 98% of demand was driven by inbound tourism, with demand especially driven tourists from the US.
In general, Costa Rica does not have a strong cigar smoking tradition. As a result, interest in cigars and cigarillos among local consumers is traditionally low.
In efforts to overcome distribution challenges created by the pandemic in 2020, players looked into developing their own e-commerce platforms to reach consumers. Indeed, both local and imported brands (particularly Cuban) faced major distribution challenges during 2020 as a result of lockdown restrictions.
Cigars and cigarillos is anticipated to see a gradual recovery beginning in 2021 and 2022. Indeed, in current value and volume terms the category is set to see double-digit growth throughout almost the entire forecast period.
As the economic and tourism recovery continues to unfold with uncertainty in the beginning of the forecast period, local manufactures and international distributors are expected to make additional efforts to re-enforce their e-commerce skills. Indeed, during the pandemic players turned online to directly reach international consumers while they were unable to visit Costa Rica.
Due to potential economic recession over the forecast period, more affordable smoking tobacco options could gain traction amongst locals, particularly among younger millennial buyers interested in more affordable and natural options that they can roll on their own. While currently smoking tobacco remains negligible without a significant retail market in Costa Rica, it may have an opportunity for development in the forecast period.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Cigars, Cigarillos and Smoking Tobacco industry in Costa Rica with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Cigars, Cigarillos and Smoking Tobacco industry in Costa Rica, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Cigars, Cigarillos and Smoking Tobacco research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page