Smoking tobacco dominates retail volume sales of cigars, cigarillos and smoking tobacco, with fine cut tobacco particularly popular as a cheaper alternative to cigarettes. However, retail volume sales of fine cut tobacco plunged by more than two-fifths during 2019 after the tax on fine cut tobacco was increased in order to bring it in line with cigarettes.
Dubek Ltd continued to lead fine cut tobacco during 2021 with its Bali Shag brand. The pace of new product launches has slowed significantly since the move to increase taxation on these products in 2019, but the pandemic may also have played a role in this.
Retail volume sales of cigars and cigarillos remain very limited, but both of these categories saw robust growth in retail volume sales during 2021. These products are traditionally smoked by individuals at or near entertainment venues.
Retail volume sales of fine cut tobacco will continue to decline throughout the forecast period. The ongoing decline in smoking prevalence will be the main driver of this.
There will be robust growth in retail constant value sales of cigars and particularly cigarillos during the forecast period. The easing of pandemic restrictions are the epidemiological threat posed by COVID-19 continues to weaken will be a factor in this, particularly during the early part of the forecast period.
Retail volume sales of pipe tobacco will perform robustly throughout the forecast period, albeit from a relatively low base. Growth will be supported by the easing of restrictions on movement, will which lead to increased socialising.
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Cigars, Cigarillos and Smoking Tobacco
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