Cigars suffered a decline in retail volume growth compared with 2019, as speciality shops were closed during lockdown. Also, with less socialising, there was less occasions for smoking cigars.
Cigars and cigarillos retail volume sales are collectively dominated by Scandinavian Tobacco Group, Arnold André Cigars and Corporación Habanos. These players have been established in Estonia for a long time and face little in the way of serious competition.
As smoking tobacco remained a cheaper alternative to cigarettes in 2020, despite excise tax for smoking tobacco increasing in 2019, more regular cigarette smokers continued to switch to loose fine cut tobacco or alternating between the two products. RYO tobacco accounted for the vast majority of sales as MYO tobacco requires additional machinery and therefore has not been adopted widely.
As smoking prevalence continues to decline in Estonia, as Estonians and particularly the younger generation become more health conscious, there is expected to be negative volume growth for cigars and cigarillos. Cigars and cigarillos are perceived as even more unhealthy than cigarettes and this will further dampen volume sales.
As a result of anticipated annual tax increases, prices will rise over the forecast period and may lead to some consumers quitting smoking completely, but as smoking tobacco is much cheaper than cigarettes, sales are expected to remain positive over the forecast period as a whole appealing to consumers looking for value-for-money products.
With sales of tobacco products banned through e-commerce channels since July 2019, this particularly impacted premium cigars. Distribution is also hampered by the fact that the main specialist tobacconists which stock such products are located in larger urban areas.
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Understand the latest market trends and future growth opportunities for the Cigars, Cigarillos and Smoking Tobacco industry in Estonia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Cigars, Cigarillos and Smoking Tobacco research and analysis database.
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