Although a moderate decline is expected over the forecast period, volume sales of cigars and cigarillos are expected to be resilient in the context of the wider tobacco industry, as both categories may remain somewhat more immune to the competition from smokeless tobacco, e-vapour and heated tobacco products than cigarettes.
Within pipe tobacco, higher taxes than in the years up to 2022 are expected to continue dampening the demand for shisha tobacco, with incrementally rising taxes planned annually between 2023 and 2025, although sales are forecast to recover gradually following the calamitous performance seen in 2022, as retailers and consumers will eventually adjust to the new modus operandi affecting the category.
Fine cut tobacco is expected to see a modest drop in volume sales, thanks to its enduring popularity among young adults due to its affordability, especially during periods with unfavourable macroeconomic conditions, such as those expected to continue being seen in at least the first half of the forecast period.
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Cigars, Cigarillos and Smoking Tobacco
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