Homogenized Tobacco Leaf Cigars Market Size, Forecast [2031]

Report Description

Homogenized Tobacco Leaf Cigars Market Outlook 2031

The global homogenized tobacco leaf cigars market size was USD XX Billion in 2022 and is likely to reach USD XX Billion by 2031, expanding at a CAGR of 6.5% during 2023–2031. The market growth is attributed to the growing popularity of smoking, and the high demand for flavored cigars.

Rising popularity of smoking, as a social trend, is driving the demand for homogenized tobacco leaf (HTL) cigars in the global market. These cigars are paper-like products, made using finely ground tobacco. These cigar variants are affordable, as their production cost is considerably lower than those made of natural leaves. Surging use of different tobacco products for personal leisure is driving demand in the market. For instance,

• According to a study published by the World Health Organization (WHO) on July 31, 2023, about 22.3% global population used tobacco in 2020. Of these 36.7% were men, and 7.8% were women.

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Some HTL cigars are manufactured using a paper-making process, which allows them to be stored for a long duration. The advantage of fast production and wide marketability of HTL cigars, due to their cost benefits, are expected to be key factors fueling the market during the assessment period.

The research report finds that the COVID-19 pandemic affected the homogenized tobacco leaf cigars market. The market was restricted by lockdowns imposed by various governments, which limited social gatherings and closure/limited operation of shops that sell tobacco products. This, in turn, lowered the sales of the product. Additionally, the slowdown in production activities and logistics further restrained the market, during the pandemic. For instance,

• According to an analysis performed by the University of California (San Francisco, the US), which included 11,590 COVID-19 patients, among the people infected by this virus, the risk of progression of disease in individuals who smoked or used to smoke doubled as compared to non-smokers.

Homogenized Tobacco Leaf Cigars Market Dynamics

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Major Drivers

Growing consumer preference for flavored cigars is one of the significant drivers in the market. Individuals who smoke are inclined toward exploring various tobacco products, with their rising availability in the stores. The changing lifestyle and growing influence of various media content on young individuals are resulting in the rise of smoking habits. The availability of various flavored cigar products in the market, allows individuals to enhance their smoking experience and be safe from bad breath while continuing with their smoking habits.

• As per a survey study published in September 2023, an average individual is likely to smoke 6.9 cigar pieces in 2023. The worldwide cigar industry valuation amounted to USD 22.4 Billion as of 2023.

Rising demand for affordable and effective alternatives to traditional cigars is another propelling factor in the market. As the cost of tobacco products is climbing high with government-imposed taxes and manufacturing costs, individuals are increasingly seeking affordable alternatives, such as HTL cigars.

These cigars are stored for a long duration and are highly popular among adult smokers, owing to their wide marketability. Rising emphasis by tobacco manufacturers on cutting production costs is likely to benefit the market in the coming years.

Existing Restraints

Rise of anti-smoking initiatives and increase in taxation and regulations on cigarettes by various governments are anticipated to hinder the market. Various global and local non-governmental organizations (NGOs) are boosting their antismoking campaigns, through social media and offline programs.

Governments in worldwide nations are actively dissuading people from smoking, with promotional activities, helplines, increasing product costs, and collaborating with private organizations. All of these factors are likely to have a considerable impact on the market in the years ahead.

Emerging Opportunities

Introduction of new flavors and Heat-not-burn (HNB) Tobacco products is anticipated to generate attractive opportunities in the market. Increasing individual preference to explore new cigars, with the change of lifestyle and growing disposable income, is likely to power the market during the projection period. The growing demand for these products on e-commerce platforms is expected to create growth opportunities in the market.

Scope of the Homogenized Tobacco Leaf Cigars Market Report

The global market research report includes an assessment of the market trends, market segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Type Analysis

Based on type, the homogenized tobacco leaf cigars market is divided into light menthol, full flavor, and others. The light menthol segment is expected to expand at a substantial CAGR during the projection period, due to the rising preference for menthol cigars among cigar enthusiasts.

These HTL cigar variants are developed for individuals wanting a smooth smoking experience. HTL light menthol offers mild and less overwhelming flavor thereby, making consumers desire cigars with a sophisticated tobacco taste.

The full flavor segment is anticipated to hold a considerable share of the market, with a growing consumer base and a rise in demand for these cigars from online platforms. For individuals who seek rich and robust smoking sessions, full-flavor HTL cigars offer an enriching experience. Such a whole smoking experience makes these cigars the preferred choice among adult smokers.

• According to a study published in November 2023 by Tobacco Reporter, in the US, Menthol cigarettes account for 34% of the total cigarette sales. The sales of flavored cigars hold a 51% share of the total sales of cigars in convenience stores.

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Filler Type

On the basis of filler type, the global market is segregated into long-filler cigar, short-filler cigar, and others. The short-filler cigar segment is anticipated to register a considerable CAGR during the assessment period, owing to their common availability and wide consumer base.

These cigars are well known as chops or picadura. They are manufactured with chops of scrapped tobacco leaf. These cigars burn speedily and are significantly hotter than long-filler cigars.

Distribution Analysis

On the basis of distribution, the homogenized tobacco leaf cigars market is segmented into offline and online. The offline segment is projected to register a robust pace during the forecast period, due to the rising trend of smoking in social settings, such as restaurants, cafeterias, bars, and offices. The physical retail stores are highly preferred by consumers to buy tobacco products, owing to their quick & easy accessibility and other conveniences.

The online segment is expected to witness rapid growth, owing to the rising availability of various tobacco products on the e-commerce platforms. Increasing use of smartphone applications for online shopping and rising income level fuels this segment. Additionally, growing consumer base for luxury cigars, to enrich the smoking experience is creating opportunities for the segment.

Regional Outlook

In terms of region, the global homogenized tobacco leaf cigars market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market during the projection period, owing to growing demand for premium tobacco products and a steady rise in the number of smoking individuals.

The changing lifestyle and rising leisure activities among the population are strongly supporting the regional market. The surging preference for flavored cigars and their rising availability in physical stores, are fueling the market. Additionally, the growing purchase of tobacco products over online platforms is likely to expand opportunities in the regional market. For instance,

• According to the survey report published in September 2023, revenue from cigar sales in the US reached USD 12.7 billion in 2023. The per-person revenue generated from Cigars reached USD 42.31 in 2023.

The market in Asia Pacific is anticipated to grow rapidly during the forecast period, owing to the rising demand for HTL cigars in nations such as India, Japan, and China. Rise in income levels and changing lifestyles, among youth and adult populations, are fueling the regional market. The region is witnessing the launch of various flavored cigar products, in different price ranges and sizes. The inclination of individuals to explore different tobacco products, to enhance the smoking experience, is creating opportunities in the market.

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