The positive value growth in cigars, cigarillos and smoking tobacco in 2020 was as result of the good performance of smoking tobacco. Fine cut tobacco experienced growth in consumption in 2020 for the first time in years.
Another category within cigars, cigarillos and smoking tobacco that continued to see sales rise in 2020, although at a slower rate than in 2019, was pipe tobacco. While traditional pipe tobacco is recording a downturn in sales in Portugal, water pipe tobacco continues growing in the country as its consumer base increases and more products/flavours reach the market.
Besides smoking tobacco, cigarillos was the only other category within cigars, cigarillos and smoking tobacco to see positive growth in 2020. From May 2020, the sale of menthol-flavoured cigarettes and fine cut tobacco were forbidden in the EU, creating opportunities for other tobacco categories such as cigarillos which are not covered by the ban.
Cigars, cigarillos and smoking tobacco is anticipated to continue to grow over the forecast period, as the Portuguese economy gradually reinstates and the limitations on people’s movement are reduced. Cigarillos and water pipe tobacco are set to drive the category’s positive performance.
Cigars will remain a niche segment with low penetration in Portugal. After the high downturn in 2020, driven by the decline in social moments and the impact of the COVID-19 pandemic on the on-trade channel, sales of cigars are expected to rise in 2021 and 2022 to maintain a relatively stable performance over the forecast period as a whole.
After the increase observed in 2020, sales of fine cut tobacco are anticipated to return to their former negative performance as consumers start to spend less time at home as COVID-19 restrictions on movement and socialising are relaxed. Fine cut tobacco is expected to continue to decline over the course of the forecast period, affected by the EU ban on menthol flavour which came into effect in May 2020 and by review period tax hikes and legislation on minimum pack weight.
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Understand the latest market trends and future growth opportunities for the Cigars, Cigarillos and Smoking Tobacco industry in Portugal 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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