In 2020, sales of cigars, cigarillos and smoking tobacco recorded heightened value growth of 7%, compared to a value decline in 2019. In addition, cigars recorded heightened volume growth of 4%, while fine cut tobacco recorded a significant uplift, reaching double-digit growth of 16%.
Fine cut tobacco recorded the strongest volume and value growth in 2020. Consumers of fine cut tobacco value the option to regulate their expenditure by managing the size of the cigarettes they produce, and, given the uncertainty around the personal budgets of some Swiss during the outbreak of COVID-19, the product remained a good option for these consumers in 2020.
Due to the outbreak of COVID-19 in 2020, the government implemented strict rules and regulations to curb the spread of the virus, including border controls. This led to a strong decline of cross-border trade, which had a positive impact on cigars and cigarillos, boosting domestic demand.
Much as in cigarettes, as the country recovers from the outbreak of COVID-19, cross-border trade is likely to return, allowing Swiss consumers to once again shop in neighbouring countries, where tobacco products are cheaper than in Switzerland. This will have an impact on all areas in volume sales, with only cigarillos managing to record positive volume growth in 2021, with cigarillos and fine cut tobacco being the only products to record a positive volume CAGR for the forecast period.
Cigars volume sales are set to decline across the full forecast period, whereas cigarillos, driven by price sensitivity and innovation will keep posting slight growth. In addition, volume decline for cigars over the forecast period, will be due to the declining user base.
The competitive landscape in smoking tobacco remained concentrated in 2020, and this is set to remain the case over the forecast period, with the two leading players, Japan Tobacco International and Pöschl Tabak, jointly accounting for nearly half of the category volume sales. However, most relevant new launches in the category will continue to be seen from smaller manufacturers, such as Koch & Gsell, which introduced a new manufacturing process during the review period, which enables it to include hemp in its tobacco products.
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Understand the latest market trends and future growth opportunities for the Cigars, Cigarillos and Smoking Tobacco industry in Switzerland 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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