Growing Appetite for Flavours

Source from:  tobaccojournal.com 08 Jan 2007 01/29/2007

More frequent new product launches and new trends for premium and machine-made cigars have characterised the international market for cigars during recent years. Cigar manufacturers are looking at growing popularity of smaller formats and flavoured products. At first glance the general picture of the world-wide cigar market does not appear to have changed that much over the past few years. Global consumption is still estimated at about 15 billion units, with western Europe and North America together accounting for 90 per cent. Eastern Europe and Africa/the Middle East continue to account for only a very limited percentage of the global market, while Asia just about reaches the ten-per cent mark of global cigar sales. Looking at the segments, the dominant share of global volume remains with the machine made cigars, reaching 97 per cent of total sales. Consequently, handmade or premium cigars account for less than three per cent of global volume, generating, however, more than 25 per cent of global sales' value. Two in every three premium cigars are still sold in the US, but Spain, France and the UK also remain important markets. Not surprisingly Franco-Hispanic group Altadis successfully defended its leading position with a 25 per cent share of the international market (excluding eco cigarillos and little cigars). In 2005 the company produced 3.4 billion cigars, generating sales of E 885 million. Swedish Match ranked second with a 13 per cent market share, followed by Swisher International (12 per cent), ST Cigar Group (11 per cent), and Burger/Dannemann (9 per cent). Enditem