Market Forecast by Countries (United States, Canada), By Product Type (Mass, Premium), By Flavour (Tobacco/No Flavor, Flavored) And Competitive Landscape
Product Code: ETC437394 | Publication Date: Jun 2023 | Updated Date: Jan 2025 | Product Type: Market Research Report | |
Publisher: 6Wresearch | No. of Pages: 200 | No. of Figures: 90 | No. of Tables: 30 | |
Report Name | North America Cigar and Cigarillos Market |
Forecast period | 2025-2031 |
Forecast Size | USD 10.5 billion by 2031 |
CAGR | 3.4% |
Growing Sector | Premium Cigars |
The North America Cigar and Cigarillos Market report thoroughly covers the market by countries, and product type. The report provides an unbiased and detailed analysis of the ongoing market trends, opportunities, high-growth areas, and market drivers to help stakeholders align their strategies with current and future market dynamics.
The North America Cigar and Cigarillos Market was valued at approximately USD 8.5 billion in 2025 and, reaching a market size of USD 10.5 billion by 2031. The growing interest in premium and flavored cigars is expected to be a key factor driving the market's growth. Additionally, the increased inclination towards tobacco products that offer unique flavors, combined with shifting consumer preferences, are contributing to the market's expansion. The market will see continued demand for mass-market cigars, particularly in the United States and Canada, owing to their relatively lower cost and popularity among a wide range of consumers.
The market's expansion will be fueled by factors such as increasing disposable incomes, growing health-consciousness, rising interest in alternative tobacco products, and a shift toward premium products. The North America market remains one of the largest in terms of both consumption and production of cigars and cigarillos.
According to 6Wresearch, the North America Cigar and Cigarillos Market is anticipated to grow at a CAGR of 3.4% during the forecast period 2025-2031. The North America Cigar and Cigarillos Market is driven by multiple factors, including the growing popularity of premium cigars and cigarillos. As consumers become more discerning in their tastes, there has been a significant shift toward high-end cigars, which are perceived as luxury products. This trend is primarily driven by the rising disposable income of individuals in the United States and Canada, as well as a growing appreciation for the craftsmanship and quality associated with premium cigars. Another significant driver is the increasing demand for flavored cigars and cigarillos. The millennial generation, in particular, is showing a preference for cigars that offer unique flavors, contributing to the expansion of the flavored segment. With flavor offerings such as vanilla, cherry, and chocolate, these cigars appeal to consumers who are looking for an alternative to traditional tobacco products. This shift in preferences is expected to boost sales across both the mass and premium product categories. This trend is reflected in the North America Cigar and Cigarillos Market Growth.
However, there are challenges that the market faces. One of the major obstacles is the increasing regulatory pressure on tobacco products. Governments in North America have been tightening regulations related to tobacco advertising, packaging, and the sale of flavored products. These regulations could stifle innovation in the cigar market and reduce the availability of certain products, particularly flavored cigars, which are currently gaining popularity. The increasing awareness of the health risks associated with smoking is another challenge. Despite the rising interest in premium cigars, a significant portion of the population is becoming more health-conscious, leading to a decline in the overall consumption of tobacco products. Public health campaigns and smoking cessation initiatives are contributing to this decline, which could negatively impact market growth in the long term.
The North America Cigar and Cigarillos Market is witnessing a trend toward premiumization. Consumers are increasingly favoring higher-quality cigars that offer an elevated smoking experience. This trend is not only driven by a desire for better flavors and craftsmanship but also by the aspirational value that premium cigars offer. As a result, the premium cigar segment is expected to see significant growth during the forecast period. In addition, there is an increasing shift towards organic and natural cigars, which appeal to the growing number of consumers seeking tobacco products that are less processed. This trend is particularly popular among health-conscious consumers who are looking for alternatives to conventional cigars that may contain artificial additives. The growing demand for organic and all-natural cigars is anticipated to play a major role in shaping the market in the coming years.
North America remains an attractive market for investment in the cigar and cigarillos sector due to its size, mature market conditions, and growing consumer interest in premium and flavored products. Investors looking to enter the market may find opportunities in both the production of premium cigars and in the distribution of flavored and mass-market cigars. With an expected CAGR of 3.4%, the market is poised for steady growth, presenting opportunities for both established players and new entrants. Additionally, as consumer preferences evolve toward healthier and more innovative options, there will be opportunities to invest in natural and organic cigar products. Companies that invest in creating premium-quality, natural cigars and those that explore sustainable production methods may find a growing customer base. Moreover, the increasing popularity of tobacco alternatives offers opportunities for brands to diversify their product offerings and attract new consumers.
The leading players in the North America Cigar and Cigarillos Market include Altadis U.S.A., Inc., Swedish Match, Imperial Brands, and Scandinavian Tobacco Group. These companies are recognized for their strong product portfolios, innovative strategies, and distribution networks. They continue to dominate the market through their established presence and by catering to consumer preferences for premium and flavored cigars.
Government regulations play a crucial role in shaping the landscape of the North America cigar market. In both the United States and Canada, regulatory measures have been introduced to control the marketing, packaging, and sales of tobacco products, including cigars and cigarillos. In the United States, the Food and Drug Administration (FDA) has jurisdiction over the regulation of cigars, which includes setting standards for product ingredients, labeling, and packaging. In Canada, the federal government has stringent policies in place regarding tobacco products. The Tobacco and Vaping Products Act (TVPA) regulates the sale and advertising of cigars, and health warnings must be displayed on all tobacco products. These regulations have a direct impact on product innovation, pricing, and the way cigars are marketed. As more regulations are likely to be implemented in the future, cigar manufacturers must adapt to remain compliant with the changing regulatory environment.
The future of the North America Cigar and Cigarillos industry looks promising, with continued growth expected in both the premium and flavored segments. As consumers increasingly prioritize quality and experience over quantity, the demand for premium cigars is likely to drive the market forward. Moreover, the growing popularity of flavored cigars, particularly among younger generations, will create new opportunities for manufacturers to innovate and cater to evolving tastes. Sustainability and health-consciousness are expected to play key roles in shaping the future of the market. With consumers becoming more aware of the environmental and health impacts of tobacco products, there may be a shift towards organic and natural cigars. Companies that can meet these demands through sustainable sourcing and production processes will be well-positioned to succeed in the future.
The report offers a comprehensive study of the following market segments and their leading categories:
According to Ashutosh, Senior Research Analyst at 6Wresearch, The United States is expected to dominate the North America Cigar and Cigarillos Market, accounting for over 80% of the market share by 2031. With its large consumer base, the demand for cigars in the U.S. remains high, driven by both mass and premium products. The U.S. market continues to be the largest consumer of cigars, with preferences shifting towards flavored and premium cigars in recent years.
The premium cigars segment is anticipated to dominate the market, reaching USD 7 billion by 2031. Premium cigars are highly favored by consumers seeking a superior smoking experience and are often associated with luxury and relaxation. The segment is benefiting from increasing disposable incomes and a growing appreciation for high-quality, handcrafted cigars.
Flavored cigars are forecasted to grow at a CAGR of 4.1%, reaching a market size of USD 3.5 billion by 2031. These cigars appeal to younger, more experimental smokers, who seek unique smoking experiences. With a variety of flavors such as vanilla, chocolate, and fruit, flavored cigars are gaining traction among consumers.
The report offers a comprehensive study of the subsequent market segments:
1 Executive Summary |
2 Introduction |
2.1 Key Highlights of the Report |
2.2 Report Description |
2.3 Market Scope & Segmentation |
2.4 Research Methodology |
2.5 Assumptions |
3 North America Cigar and Cigarillos Market Overview |
3.1 North America Regional Macro Economic Indicators |
3.2 North America Cigar and Cigarillos Market Revenues & Volume, 2021 & 2031F |
3.3 North America Cigar and Cigarillos Market - Industry Life Cycle |
3.4 North America Cigar and Cigarillos Market - Porter's Five Forces |
3.5 North America Cigar and Cigarillos Market Revenues & Volume Share, By Countries, 2021 & 2031F |
3.6 North America Cigar and Cigarillos Market Revenues & Volume Share, By Product Type, 2021 & 2031F |
3.7 North America Cigar and Cigarillos Market Revenues & Volume Share, By Flavour, 2021 & 2031F |
4 North America Cigar and Cigarillos Market Dynamics |
4.1 Impact Analysis |
4.2 Market Drivers |
4.3 Market Restraints |
5 North America Cigar and Cigarillos Market Trends |
6 North America Cigar and Cigarillos Market, 2021 - 2031 |
6.1 North America Cigar and Cigarillos Market, Revenues & Volume, By Product Type, 2021 - 2031 |
6.2 North America Cigar and Cigarillos Market, Revenues & Volume, By Flavour, 2021 - 2031 |
7 United States Cigar and Cigarillos Market, 2021 - 2031 |
7.1 United States Cigar and Cigarillos Market, Revenues & Volume, By Product Type, 2021 - 2031 |
7.2 United States Cigar and Cigarillos Market, Revenues & Volume, By Flavour, 2021 - 2031 |
8 Canada Cigar and Cigarillos Market, 2021 - 2031 |
8.1 Canada Cigar and Cigarillos Market, Revenues & Volume, By Product Type, 2021 - 2031 |
8.2 Canada Cigar and Cigarillos Market, Revenues & Volume, By Flavour, 2021 - 2031 |
9 North America Cigar and Cigarillos Market Key Performance Indicators |
10 North America Cigar and Cigarillos Market - Opportunity Assessment |
10.1 North America Cigar and Cigarillos Market Opportunity Assessment, By Countries, 2021 & 2031F |
10.2 North America Cigar and Cigarillos Market Opportunity Assessment, By Product Type, 2021 & 2031F |
10.3 North America Cigar and Cigarillos Market Opportunity Assessment, By Flavour, 2021 & 2031F |
11 North America Cigar and Cigarillos Market - Competitive Landscape |
11.1 North America Cigar and Cigarillos Market Revenue Share, By Companies, 2024 |
11.2 North America Cigar and Cigarillos Market Competitive Benchmarking, By Operating and Technical Parameters |
12 Company Profiles |
13 Recommendations |
14 Disclaimer |