Luxury Cigarette Market Size, Share & Forecast 2015

The luxury cigarette market is expected to see an upward trend and high CAGR levels in the forecasted period. Cigarettes, cigars, and other tobacco products have undergone a lot of innovation in the past few years, with innovation in size, styles, flavors, packaging, and nicotine content. For the elite consumers in the market, all of this innovation, coupled with the addictive nature of cigarettes and the status symbol that luxury cigarettes provide, has led to higher demand worldwide. In addition, as more people become health-conscious and climate-conscious, the need for herbal and organic cigarettes has also increased.

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During the start of the Covid-19 pandemic, there was the unavailability of tobacco products and increased costs, which led to a fall in global luxury cigarette sales. As a result, 2020 saw a decline in the volume of cigarette and luxury brand sales. However, this decline is over, and the next forecast period is expected to grow sales.

The global Luxury Cigarette Market was valued at around USD 40.75 billion in 2020 and likely move at a CAGR of 7.49% to generate revenue of USD 78.55 billion in 2020. While cumulative revenue opportunity offered by Luxury Cigarette between 2021 and 2027 will be over USD 458 billion.

Interesting Facts about Luxury Cigarette Industry

Over 50 million people smoke every day in North America
North America has the highest average cigarettes consumption per capita
Over 8 million people die worldwide due to tobacco each year
Luxury cigarettes are costly, and cost goes as high as USD 75 per pack
Saudi Arabia is one of the largest markets for Luxury Cigarettes in the Middle East

Changing Lifestyle

There are a few factors to consider when it comes to drivers to the luxury cigarette market. The first and foremost is the general rise in demand for luxury goods globally as disposable incomes rise and people live more luxurious lifestyles. The number of people with the highest net worth has also gone up. Luxury cigarettes are a status symbol that distinguishes people as part of a social elite class, which drives their demand.

A good method of stress relief

The next factor to consider is the belief amongst people that cigarettes are a suitable method of stress relief. With fast-paced lives and the day and age of modern capitalism, everybody is stressed out about their work, businesses, families, or something else. Therefore, luxury cigarettes are a coping mechanism, and the stress of daily life drives up their demand.

Lastly, as global climate consciousness grows, many companies have started using organic, natural, and additive-free tobacco labels to attract more smokers and drive sales of luxury cigarettes. In addition, many tobacco farmers have also switched to organic farming methods, and the resulting positive response of consumers to the tobacco market has also led to a positive reaction to the cigarettes market.

Health Hazards and Addiction

Because of the harmful and addictive nature of cigarettes, the luxury cigarette market has certain restraints. The first is that there is a huge rise in health consciousness amongst consumers. While people have been becoming more aware of the consequences of smoking in general over the past few years, the Covid-19 pandemic and the resulting rise in respiratory diseases has led to an even more significant decline in consumers' smoking habits.

Next, because of the harmful and addictive nature of cigarettes, the luxury cigarette market faces restraints in the form of highly regulated sales and distribution, rules and regulations, high tax and import duties, and restrictive conditions on the tobacco industry. Cigarettes are also not advertised like most other luxury goods, which is a considerable restraint in the age of social media and celebrity influence on consumers worldwide.

Men Dominate Luxury Cigarette Market

The global Luxury Cigarette market is classified into Men and Women. Men dominate the end-user segment with over 70% share in the worldwide market. While low tar and high tar are product types based on tar content. Some of the leading players in global luxury cigarettes include Japan Tabacco, Alliance One International, R.J. Reynolds, Imperial Tobacco Group, CHINA TOBACCO, Altria Group, British American Tobacco, Universal, KT&GPT, Gudang Garam Tbk, and Donskoy Tabak.