After the dynamic growth seen during the review period it is expected that sales of cigars, cigarillos and smoking tobacco will see more stable growth in retail volume terms over the forecast period. Prevailing economic uncertainty alongside an increasing focus on health and wellness is likely to prevent the category from seeing stronger growth.
The cost of living rose sharply towards the end of the review period and this will likely continue to have a negative impact on demand for cigars and cigarillos with these products having higher prices compared to cigarettes and heated tobacco. The average unit price of cigars and cigarillos is also expected to rise over the forecast period with further increases in excise in the pipeline, while manufacturing and transportation costs are expected to remain inflated.
When it comes to the retail distribution of cigars and cigarillos, food/drink/tobacco specialists will continue to dominate because there is a general lack of knowledge about these products among the majority of smokers. Tobacco specialists are able to provide advice and recommendations to customers and also typically carry a wider range of products and brands to suit different tastes and budgets.
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Cigars, Cigarillos and Smoking Tobacco
This report originates from Passport, our Cigars, Cigarillos and Smoking Tobacco research and analysis database.
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