As the COVID-19 pandemic continues to affect different sectors, some analysts have been keeping track of different markets and the purchase behavior of the consumers. As per the latest analysis and estimates regarding the present market trends, it will be possible to have an outlook of the cigar industry in 2021.
The cigar sector is currently driven by the marketing strategies being used by different firms, the presence of disposable income, the presence of various cigar flavors, and cultural & social factors.
Cigarettes and drew estate cigars are the most common smoking methods in different parts of the globe. Most of the cigarettes present in the market have been filtered, and they comprise tobacco and different additives. The rate at which people are smoking cigarettes also varies on a global scale, and they have also changed over the years. Although the rate of smoking has declined or risen in developed nations, there has been a rise in developing nations.
The cigar market is divided into the following sections:
The cigar market comprises supermarkets, tobacco shops, convenience stores, and hypermarkets.
The value chain analysis has been conducted while keeping the following factors in mind: sales and distribution, procurement, and manufacturing. The study has also made use of the five forces model by Porter, which involves evaluating the competition in the cigar industry. Some of the factors that have been put in place include the bargaining power of the suppliers and buyers.
While setting up a cigarette manufacturing plant, some of the factors to consider include construction equipment, land requirement, labor requirement, raw material requirement, manufacturing process, machinery requirement, total capital investment, utility requirement, pries, total operating costs, expenditure projections, income projections, net present value, profit margins, and payback period.
It is advisable to note down some of the key players in the cigar industry while looking into the competitive landscape and capacity. Other factors to consider include developments such as acquisitions and mergers. Some of the key players currently include:
• British American Tobacco
• Phillip Morris International
• Imperial Brands PLC
• Japan Tobacco International
To develop an accurate report, the analysts have had to conduct interviews over the phone with some of the key players in the cigar sector. The main participants in the interviews were distributors, manufacturers, consultants, end-users, researchers, and marketing professionals. Primary research has also contributed significantly when sourcing for information. Some secondary sources include press releases, annual reports, journals, books, newspapers, white papers, government sources, magazines, and other types of databases.
The current cigar market is worth $960.69 billion. The market is set to grow because of disposable income and the marketing strategies currently being used by tobacco firms. The different cigar flavors have also contributed to this growth. Between 2021 and 2026, the cigar industry is set to grow further, and it may attain a value of $1130.02 billion.
To get a better outlook about the cigar sector in 2021, the researchers have covered the micro and macro aspects. Depending on the types, the cigar sector is made up of medium, light, and others. The cigars are distributed through supermarkets, tobacco shops, convenience stores, online stores, and hypermarkets. We had mentioned this earlier in this context.
By using advanced analytical tools and the expertise of a team that is highly accomplished, it is possible to offer accurate market insights to consumers. Such insights also ensure that manufacturers can have a competitive edge.
In 2021, the cigar industry is expected to witness a healthy growth curve. Amid the pandemic, developing nations are consuming more cigars; as for the developed nations, the curve has either gone down or leveled off.