The global premium cigarette market is expected to be valued at USD 11235.7 million in 2023. The availability of premium cigarettes is estimated to see significant growth in the long run, as some people are willing to spend hugely on their smoking habits.
The availability of high-quality cigarettes for curious smokers might also drive the sales of premium cigarettes worldwide in the forthcoming years. Moreover, the overall demand for premium cigarettes is projected to expand at a CAGR of 6.2% between 2023 and 2033, totaling around USD 20504.4 million by 2033.
The Availability of Flavored Cigarettes is Likely to Augment Premium Cigarette Sales
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 crop yield.
Smokers have shifted their focus toward cigars and cigarettes developed from organic tobacco over the last few years 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 popular among youngsters owing to the novelty of smoking some flavored cigarettes.
Which Factors are limiting the Growth of the Premium Cigarette Market?
Increasing Awareness of Harmful Impacts of Cigarettes to Impede the Growth
The key challenge faced by the premium cigarette market is the stringent government regulations to obtain organic certifications for cigarettes and restrictive conditions of the tobacco industry may hamper the growth of the market to some extent.
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.
| Data Points | Key Statistics |
|---|---|
| Premium Cigarette Market Value 2023 | USD 11235.7 million |
| Premium Cigarette Market Projected Value (2033) | USD 20,504.4 million |
| Premium Cigarette Market CAGR (2023 to 2033) | 6.2% |
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From 2018 to 2022, sales witnessed significant growth, registering a CAGR of 5.8%. The number of female smokers has significantly increased in the last few years. Furthermore, the strong distribution network of cigarette manufacturers and the popularity of flavored cigarettes are increasing due to the adoption of Western culture lifestyles among individuals.
The demand for cigarettes has surged over the last half decade with cigarette manufacturers coming up with flavored variants. Also, the market has been undergoing a massive transformation. This has been observed in the form of collaborations on the grounds of new materials, machinery compatibility, and the development of sustainable products.
The sales of cigarettes in convenience stores are gaining an increasingly important role in the launch of new cigarette brands. The overall demand for premium cigarettes is projected to grow at a CAGR of 6.2% between 2023 and 2033, totaling around USD 20,504.2 million by 2033.
Increasing Number of Smokers to Boost Market Growth in North America
North America’s premium cigarette market accumulated a market share of 19.3% in 2022. According to the Centers for Disease Control and Prevention, in 2020, nearly 13 of every 100 adults in the United States aged 18 years or older (12.5%) smoked cigarettes.
This means an estimated 30.8 million adults in the United States currently smoke cigarettes. More than 16 million Americans live with a smoking-related disease. The United State market consists of premium cigarettes, generally marketed under well-recognized brand names.
Increasing Penetration of Premium Brands to Boost Market Growth in Europe
The Europe region is anticipated to hold a market share of 21.4%. Various European premium cigarette brands are frequently manufactured in Germany, Switzerland, and other countries of Europe with high quality, reliability, and industrial standards. However, smoking restriction rules and regulations are limiting cigarette production.
The sales of cigarettes have declined not because of restrictions but also because of the increasing prevalence of health diseases related to smoking over the last few years. According to WHO, in Europe, Greece has a high rate of tobacco consumption among the adult population (39.1%) and high tobacco use by adolescents.
The smoking prevalence gap between male and female adults is getting small in countries of Europe such as Denmark, Ireland, the Netherlands, Sweden, and the United Kingdom. However, due to the advertising ban on smoking products and stringent policies, selling and distributing cigarettes is a tricky task for companies. Thus, they are seeking alternative ways to do a product launch and branding.
Companies are raising the price of cigarettes to increase their profit per pack to stay in the market. However, raising cigarette prices might not limit adults or young people from smoking, which is estimated to remain key to steady demand in the long run.
China leads the Market with One-third of the World’s Total Smokers
More than half of the top cigarette brand sales are generated from Asia Pacific’s market as cigarette consumption is 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 potential customers for premium cigarette brands in the forthcoming years. Moreover, gifting cigarettes and its related products is deeply rooted in Chinese culture, particularly in rural areas, and continues to drive demand for premium cigarettes.
The country's demand for premium cigarettes is expected to grow at a significant rate during the assessment period because gifting cigarettes, primarily premium cigarettes, during holidays or special occasions is a sign of respect and a status symbol among people living in China. Further, the demand for premium cigarettes in China is likely to be led by the male population, as the consumption of tobacco among adult men is significantly high compared to females.
Principal Consultant
Some key start-ups in the premium cigarette market are Lets Hash, VST Industries, Godfrey Phillips India, Cian Agro Industries & Infrastructure, and many more.
Recent Developments-
Prominent players in the Premium Cigarette market are 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, R. J. Reynolds Tobacco Company, The Chancellor Tobacco Company, China Tobacco, Thailand Tobacco Monopoly, and Joh. Wilh from Eicken GmbH, and various other regional manufacturers.
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| Report Attributes | Details |
|---|---|
| Growth Rate | CAGR of 6.2% from 2023 to 2033 |
| Market Value in 2023 | USD 11235.7 million |
| Market Value in 2033 | USD 20504.4 million |
| Base Year for Estimation | 2022 |
| Historical Data | 2018 to 2022 |
| Forecast Period | 2023 to 2033 |
| Quantitative Units | Revenue in USD million and CAGR from 2023 to 2033 |
| Report Coverage | Revenue Forecast, Company Ranking, Competitive Landscape, Growth Factors, Trends, and Pricing Analysis |
| Segments Covered |
Product Type, Format, Sales Channel, Region |
| Regions Covered | North America; Latin America; Europe; Asia Pacific; The Middle East and Africa (MEA) |
| Key Countries Profiled | The United States, Canada, Brazil, Mexico, Germany, The United Kingdom, France, Spain, Italy, China, Japan, South Korea, Singapore, Thailand, Indonesia, Australia, New Zealand, GCC, South Africa, Israel |
| Key Companies Profiled | 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; R. J. Reynolds Tobacco Company; The Chancellor Tobacco Company; China Tobacco; Thailand Tobacco Monopoly; Joh. Wilh. from Eicken GmbH |
The market is estimated to secure a valuation of USD 11,235.7 million in 2023.
The global market size is expected to reach USD 20,504.4 million by 2033.
The growth potential of the market is 6.2% through 2033.
Asia Pacific has a massive number of premium cigarette users.
Europe has a share of 21.4% in the overall market.
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Premium Cigarette Market
