The global premium cigarette market is anticipated to reach a valuation of US$ 11,235.7 million by 2023. Over the long term, there is expected to be substantial growth in the availability of premium cigarettes, fueled by the willingness of some individuals to spend significantly on their smoking habits.
Furthermore, the presence of high-quality cigarettes catering to discerning smokers is likely to boost the sales of premium cigarettes worldwide in the coming years. The overall demand for premium cigarettes is forecasted to expand at a Compound Annual Growth Rate (CAGR) of 6.2% from 2023 to 2033, reaching approximately US$ 20,504.4 million by 2033.
In the long run, there will be a significant growth in accessibility of premium cigarettes because some people like spending more for smoking.
The availability of high quality cigarettes to curious smokers will significantly boost the sales Premium worldwide in near future and higher prices on their smoking habit is going to make premium available for more growths far beyond short term.
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What is Driving Demand for Premium Cigarette?
To attract smokers, companies are using organic, natural, and additive-free tobacco labels, which is driving sales of Premium cigarettes. Farmers are also significantly investing in organic farming methods to enhance the crop yield.
Moreover, over the last few years, smokers have shifted their focus towards cigars and cigarettes developed from organic tobacco, creating an opportunity in the Premium cigarette market. In addition to traditional cigarettes, companies are introducing Premium brands with menthol capsules.
These capsules add menthol flavor to cigarettes to improve the tobacco blend. Premium cigarettes with flavor capsules are more popular among youngsters owing to the novelty of smoking some flavored cigarettes.
Covid-19 Pandemic Affected the Sales of Cigarettes and Premium Brands
Because of the unavailability and increased cost of tobacco products, the ongoing covid-19 pandemic has sharply reduced global Premium cigarette sales. Furthermore, tax increases and nationwide lockdowns in various countries are contributing factors to a decline in cigarette and Premium brand sales volume in 2020.
In addition, post the covid-19 pandemic, cigarette sales will be challenged among people who are more health conscious, limited or quit tobacco consumption during the pandemic, and concerned about being infected by coronavirus if they consume tobacco products.
Governments around the world have also increased their awareness programs about the harmful effects of tobacco during the coronavirus pandemic, which may impede market growth to some extent.
However, in order to survive in the market place, companies are improving their strategies and started lowering some of the harmful chemicals used in cigarettes such as tar and nicotine and offering a unique selling proposition to retain their customers.
Additionally, some curious smokers who purchase Premium brands in order to stand out from the crowd are likely to boost Premium cigarette demand over the course of the evaluation period.
China is currently dominating the Global Premium Cigarette Market
More than half of the top cigarette brands sales are generated from Asia-Pacific market. As, cigarette consumption is more associated with low and medium- Human Development Index (HDI) countries. Also, Asian consumers are particularly fond of long-standing, well-reputed and traditional cigarette brands.
China is one of the leading markets for Premium cigarettes globally, as there are around one-third of the world’s total smokers in China. Around 26% of adults aged 15 and above are current smokers in China, which could be the potential customers for Premium cigarette brands in the near future. Moreover, gifting cigarettes and its related products is deeply rooted in Chinese culture particularly in rural areas continues to drive demand for Premium cigarettes. se country’s demand for Premium cigarettes is expected to grow at a significant rate during the assessment period 2021-31, owing to the fact that gifting cigarettes, primarily Premium cigarettes, during holidays or special occasions is a sign of respect and a status symbol among Chinese people.
Demand for Premium cigarettes in China will be led by the male population, as the consumption of tobacco among adult men is significantly higher compared to females.
Who are the Key Manufacturers and Suppliers of Premium Cigarette?
Some of the leading manufacturers and suppliers of Premium cigarette include
- Reynolds American, Inc.
- Parliament Hybrid
- ITG Brands, LLC
- JTI-Macdonald Corp.
- British American Tobacco PLC
- Philip Morris USA Inc.
- The Nat Sherman Company
- Gallaher Group
- Imperial Tobacco Group
- J. Reynolds Tobacco Company
- The Chancellor Tobacco Company
- China Tobacco
- Thailand Tobacco Monopoly
- Wilh. from Eicken GmbH
The smoking experience and tobacco quality are the most important attributes to smokers. Thus, many prominent players in the cigarette market are expanding their product portfolio by significantly investing in premium brands with superior quality, heritage, and more appealing packaging appearance, which makes their Premium brands stand out from mass brands.
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Some companies are also creating new smoke-free alternatives and organic flavored tobacco portfolios with fewer or no harmful substances.
The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments.
Key Segments of Premium Cigarette Market
By Product Type:
- Flavored
- Non-Flavored
By Format:
- Slim
- Super Slim
- King Size
- Regular
By Sales Channel:
- Specialty Stores
- Multi-brand Stores
- Independent Tobacco Shops
- Online Retailers
- Others
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