Fine cut tobacco continues to benefit from consumers trading down, as seen by the sub-category recording the strongest volume and value growth in 2021. Although there is strong competition from other tobacco products, and despite its lack of convenience, fine cut tobacco continues to remain popular among die-hard smokers and price-sensitive consumers – especially young smokers.
In 2021, while cigars posted negative performance, cigarillos on the other hand posted positive growth thanks to an expansion of its consumer base, with aromatised products, products with filters, and slim cigarillos helping to boost the appeal of this category in Switzerland.
Pipe tobacco is a relatively mature category in Switzerland, although it continues to maintain a positive performance. Overall, pipe tobacco continues to benefit from the rising popularity of water pipe smoking – which is particularly notable among young adults as a social activity, and especially those with Oriental origins.
Over the forecast period, cigars, cigarillos and smoking tobacco are expected to post slightly positive performance. Although the overall category is subject to the same laws against tobacco advertising as cigarettes, it will still likely post more positive performance – despite the legislation voted in February 2022 that bans tobacco advertising anywhere young people might see it.
Despite strict legal restrictions on marketing covering all tobacco products, fine cut tobacco manufacturers are predicted to focus on product innovations to widen their target audience. New products are also likely to compete with standard cigarettes, as they usually have a lower price point.
Due to a stricter legislation, distribution for cigars, cigarillos and smoking tobacco will remain limited to specific points-of-sale and e-commerce. Promotional activities will likely remain restricted and highly monitored, and the new legislation will ban tobacco advertising in stores, kiosks, digital platforms and also at events.
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Cigars, Cigarillos and Smoking Tobacco
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