Mint and menthol flavor type segment is expected to account for relatively low value share by 2024 end
By flavor type, the mint and menthol segment accounted for a Y-o-Y growth of 2% in terms of value in 2016; this Y-o-Y growth rate is expected to increase to only 2.3% by 2024 end. Mint and menthol is expected to remain a low performing segment in the Europe cigar and cigarillos market throughout the forecast period and is estimated to account for a revenue share of 5.1% by 2024 end. On the other hand, the tobacco/no flavor segment is expected to remain dominant in terms of value contribution in the Europe cigar and cigarillos market over the period of forecast. This segment created absolute $ opportunity of US$ 382.7 Mn in 2016 over 2015 and is projected to create incremental $ opportunity of US$ 3,794.1 Mn between 2016 and 2024.
The mint and menthol segment was valued at US$ 1,158.8 Mn in 2016 and is expected to expand at a CAGR of 2.2% over the forecast period to be valued at around US$ 1,380 Mn by the end of 2024. Revenue from the chocolate and vanilla segment in the Europe cigar and cigarillos market is expected to increase at a CAGR of 2.4% during the forecast period.
Rising preference of women for cigars and cigarillos is a recent trend boosting the Europe cigar and cigarillos market
Nicotine addiction is one of the important reasons behind the increasing smoking habits among women. Psychological factors such as tobacco dependency also play a significant role that makes them difficult to stop smoking. For instance, women cite psychological reasons such as smoking as a sign of fashion in society and peer pressure. The social factors include upbringing of children in materially disadvantaged circumstances. These aforementioned factors are making women incline more towards smoking cigars and cigarillos, and to a certain extent, premium cigars. Remarkable cigar consumption among women has been recorded in Sweden.
In order to generate more sales revenue, manufacturers of cigars and cigarillos are focusing on expanding their product portfolio and production capacity. As a result, a majority of manufacturers are adopting strategies such as mergers and acquisitions as well as launching new products. This factor is creating a positive impact on the Europe cigars and cigarillos market. For example, Altria Group Inc. acquired John Middleton Inc., which is a leading manufacturer of machine-made large cigars, in order to expand its business in the cigarettes and smokeless tobacco products market.
Manufacturers are targeting both online and offline retailers with an objective to expand distribution networks, thereby making products easily available to consumers. Various cigar parlors are also becoming target outlets for cigar manufacturers. Through online sales, manufacturers are also providing various offers and coupons to attract more consumers. For instance, in order to expand and have a strong distribution network, Nomad Cigar Company entered into a distribution agreement with Emilio Cigars.
Increasing influence of peers for smoking is expected to support revenue growth of the cigar and cigarillos market in France
In Western Europe, nearly 90% of the NORDIC population prefers tobacco /no flavor cigars and cigarillos followed by chocolate and vanilla flavored cigars and cigarillos. Increasing popularity of cigar parlors coupled with the lounge culture in Italy is anticipated to drive the growth of the cigar and cigarillos market in the country. In Switzerland, around 80% of the population uses tobacco/no flavor cigars and cigarillos, followed by fruit and candy flavored products. An increasing female smoking population in countries of Russia and Poland is expected to drive the growth of the Eastern Europe cigar and cigarillos market over the forecast period.
A new publication by Persistence Market Research titled “Cigar and Cigarillos Market: Europe Industry Analysis and Forecast, 2016–2024,” provides detailed information about the fruit and candy flavored cigars and cigarillos that are very popular among European consumers. According to the analysts, the tobacco/no flavor segment accounts for a significant share of revenue in the Europe cigar and cigarillos market and is likely to register high growth rate during the forecast period (2016 – 2024). The report further states that cigar smokers prefer high-quality products in a variety of flavors at a relatively low cost. Besides preferring products with attractive packaging, cigar smokers prefer longer cigars and cigarillos owing to the longer smoking duration offered by these products. A detailed study of key market players shows that strengthening and expanding the product portfolio along with high product visibility is a key strategy adopted by manufacturers in the region. Persistence Market Research recommends that manufacturers need to focus on manufacturing quality products and ensure easy availability of products via internet retailing and other well-established distribution channels.
The report begins with the market definition, followed by definitions of the different cigar and cigarillos in the market. The market dynamics section includes Persistence Market Research’s analysis of key trends, drivers, restraints, opportunities and macro-economic factors influencing the growth of the Europe cigar and cigarillos market. Also, the pricing analysis of different products is mentioned for upcoming cigars and cigarillos. The report analyzes the market on the basis of application and presents a forecast by value for the next eight years. The various segments of the Europe cigar and cigarillos market have been analyzed in terms of basis point share (BPS) to understand individual segments’ relative contribution to overall market growth. This detailed level of information is important for identifying various key trends governing the Europe cigars and cigarillos market.
Finally, a competitive landscape has been included in the report to provide report audiences with a dashboard view. Key categories of providers covered in the report include cigar and cigarillos raw material suppliers and key market players. Detailed profiles of providers are also included in the scope of the report to evaluate their long-term and short-term strategies, key offerings and recent developments in the Europe cigar and cigarillo market. Various barriers to entry in the industry are analyzed and rated on the basis of their impact on the competition level in the market.
Europe Cigar and Cigarillos Market Segmentation
To understand and assess opportunities in the Europe cigar and cigarillos market, the analysts at Persistence Market Research have divided the report into two sections based on market segmentation as under:
By Flavor Type
By Focus Region
The analysts have not only conducted forecasts in terms of CAGR but have also analyzed the Europe cigar and cigarillos market on the basis of key parameters such as year-on-year (Y-o-Y) growth to understand the predictability of the market and to identify the right opportunities. Another key feature of this report is the analysis of all key market segments in terms of absolute dollar. This is traditionally overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that providers can look to achieve, as well as to identify potential resources from a sales and delivery perspective in the Europe cigar and cigarillos market. Macro-economic indicators such as food industry outlook, food and health supplement spending, and others have been considered to arrive at the indicated market numbers. Yearly change in inflation rate has not been considered while forecasting market numbers. In-depth secondary research is used to determine top industry players, products, applications, overall market size, and industry connotations.