The global market for cigars is expected to account for 19.9 billion by 2020 because of less stringent regulatory environment and tax policies, which cannot be said about cigarettes.
The economic climate in the majority of regional markets all over the world has led to improved sales of small cigars and cigarillos. Manufacturers are paying great attention to mass market strategies with the aim of gaining profits. The launch of cigars in kid-friendly flavors like chocolate, candy and fruit appeared as a key trend in the market with the purpose of attracting youth and young adults.
The thing that cigars have been “premiumized” in certain markets or they were made more appealing to consumers by emphasizing their superior quality and exclusiveness resulted in demand for large size and premium branded cigars. Cuban cigars are considered the top segment in the premium cigar market. There is an increased demand for Cuban cigars in China, Europe, and the Middle East.
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Sales of Cuban cigars jumped 5% in 2016, reaching $445 million.
According to Manufacturer Habanos, which makes brands such as Cohiba, Monte Cristo, and Romeo y Julieta, 2017 is expected to witness moderate sales growth. Habanos dominates the global market for hand-rolled, premium cigars except in the US because of Washington’s half-century trade embargo against Cuba. The US is the world’s largest cigar market.
Vice President of Development Javier Terrés has noted they are quite happy they were able to grow during really challenging times.
According to Habanos, better relations between the US and Cuba have resulted in a boom in tourism, which, in its turn, has led to increased cigar sales in Cuba. The number of visitors to the island grew 13% in 2016.