Summary

Tobacco farming and cigar production have a long and rich history in South America. The region is known for manufacturing some of the world's finest cigars, and the South American cigar and cigarillos market is expanding rapidly. South American cigar production dates back to the pre-Columbian era, when indigenous peoples farmed and smoked tobacco. The Spanish conquistadors introduced the technique of cigar-making to the continent, and South American countries, particularly Cuba, the Dominican Republic, Honduras, and Nicaragua, have grown renowned for creating high-quality cigars over the ages. The reputation of South America for creating great cigars and cigarillos stems from the region's rich history and expertise. Cigar smokers highly esteem the craftsmanship that has been passed down through centuries around the world. South American cigars are synonymous with quality and tradition, making them highly sought-after by connoisseurs. South America's economy has risen, as has its resident’s disposable income. People with higher incomes are more likely to indulge in premium tobacco products such as cigars and cigarillos. This has resulted in an expanded client base, which has fueled market expansion. Tourism has a tremendous impact on the South American cigar market. Tourists from all over the world visit countries like Cuba and the Dominican Republic, which have beautiful scenery and tobacco plantations. Many travelers buy cigars and cigarillos as souvenirs or to enjoy while touring the region, which contributes to the market's expansion. The temperature and soil of South America are perfect for tobacco growth. Regions such as Cuba's Vuelta Abajo, which is noted for producing some of the world's finest cigar tobacco, have the perfect combination of sun, rain, and soil composition to grow premium cigar leaves. This natural advantage ensures a consistent supply of high-quality tobacco, which is essential for the market's growth.

According to the research report, “South America Cigars and Cigarillos Market Outlook, 2028” published by Bonafide Research, the market is anticipated to add more than USD 900 Million from 2023 to 2028. The availability of cigars and cigarillos has grown as distribution channels have expanded. These items can now be found in specialist cigar shops, duty-free stores, and even online. This increased accessibility has made it easier for customers to access and buy their favourite cigars, fueling market development. South American cigars and cigarillos are popular all over the world. Their reputation for excellence has resulted in an increase in demand from worldwide markets, considerably contributing to the industry's growth. Many South American cigar producers export their products around the world, banking on their excellent reputation. The market for South American cigars and cigarillos is prospering, thanks to a rich tradition, increased disposable income, a burgeoning tourism industry, good natural circumstances, improved distribution routes, and rising global demand. South America is home to a number of region-specific tobacco varieties. Criollo and Corojo varietals are well-known for their distinct flavour qualities. In several South American cigar-making traditions, the blend of different tobacco kinds in a cigar's filler, binder, and wrapper is a well-kept secret, adding to the originality of their goods. South American cigars are frequently imbued with a strong feeling of legacy and terroir, which is the unique blend of geography, climate, and tradition that impacts the flavour of the tobacco. This connection to the land, as well as the region's history of tobacco growing, contributes to the distinctiveness of South American cigars. Outside of the United States, cigars are noted for their distinct flavour profiles, which can include a wide range of tastes, from earthy and spicy to sweet and creamy. These distinct flavour notes are a result of the combination of the tobacco varieties, growing conditions, and the aging process.

Based on report market is categorised in three major countries Brazil, Argentina and Colombia. Among them market is majorly dominated by Brazil with significant market share.

Brazil offers a large and diversified spectrum of tobacco-growing regions. Tobacco farms can be located across the country, each with its own distinct climate and soil conditions. Because of this diversity, Brazil can produce a wide range of tobacco types, making it a versatile supplier for the cigar business. Brazil is well-known for its Arapiraca wrapper, a dark tobacco leaf developed in Brazil that is used to wrap many luxury cigars. Arapiraca wrappers are noted for their distinct flavour and aroma, which adds a different touch to cigar blends. It is in high demand among both domestic and foreign cigar producers. Brazil is a major player in the global tobacco industry as one of the world's leading tobacco producers and exporters. Its tobacco is exported to cigar manufacturers in countries worldwide, including the United States, Europe, and Asia, contributing to the country's economic strength in the sector. Premium cigars are becoming increasingly popular among Brazil's discerning consumer base due to their creativity, aged tobacco, and nuanced flavour profiles. This trend has resulted in a growing market for high-end, artisanal cigars that cater to aficionados and enthusiasts looking for the intricacy and refinement of a premium cigar. Another significant market development is the growing popularity of cigarillos. These small and adjustable items offer a short and enjoyable smoking experience, making them an enticing option for anyone looking for a convenient and pleasant smoke. The range of flavours, including fruity and aromatic varieties, has contributed to cigarillos' popularity, particularly among a younger and more diverse customer base.

Based on type market is divided into cigars, cigarillos and little cigars. Cigars type is expected to dominate the market of South America. Furthermore, based on flavour segment market is divided into tobacco/ no flavoured and flavoured.

The two most common cigar shapes or styles are parejos and figurados. Figurados have uneven or tapered shapes, while Parejos are straight-sided cigars with a cylindrical shape. In South America, both forms are popular. Parejos are popular for their basic and straightforward shape, while Figurados are noted for their distinct and frequently more complex flavours due to the shifting diameter of the cigar throughout its length. South American countries have honed their skills in the production of specific types of cigars. Countries such as Cuba and the Dominican Republic, for example, are well-known for their high-quality Parejos cigars, whereas Brazil is well-known for its Arapiraca-wrapped cigars, which come in a variety of shapes and sizes. The preference for specific cigar types can also be influenced by cultural practices and traditions. In South American countries, certain cigar types may be associated with specific events, rituals, or celebrations, making them more popular and dominant in the local market. The heritage and branding of specific cigar types can play a significant role in their dominance. Well-established brands and traditional cigar types often have a loyal following and maintain their dominance in the market. South America has a long history of tobacco cultivation and cigar production, with a strong emphasis on the purity and authenticity of the tobacco used in cigars. Non-flavoured cigars and cigarillos allow consumers to experience the unadulterated taste of high-quality tobacco, which is a hallmark of South American cigar craftsmanship. South American countries have access to a wide range of tobacco varieties, each with its unique flavour profiles. Non-flavoured cigars and cigarillos showcase the diverse and rich flavours of South American tobacco, which can include earthy, spicy, and sometimes sweet notes. This variety is a key reason consumers opt for non-flavoured options.

Based on price range market is segmented into mass and premium. Based on distribution channel market is divided into speciality store, hypermarket/supermarket, convenience stores, online and others.

South America's economies have increased, and so has its resident’s disposable money. People with higher wealth are more likely to indulge in luxury items such as premium cigars and cigarillos. Because of this increasing spending capacity, the client base for premium tobacco products has grown. South American cigar connoisseurs have refined their palates over time. They enjoy the complexity and nuances of premium cigars, which frequently have high-quality tobacco blends that have been aged to perfection. These cigars provide a refined and complex flavour profile that appeals to discerning consumers. Cuba, in particular, is well-known for its premium cigars, known as "Habanos." Cuban cigars are famous for their unique flavour and aroma. Their standing as the gold standard in the cigar market makes them extremely desirable, contributing to the demand for premium cigars in the region. Convenience stores are one of the major distribution channels for cigars and cigarillos in South America. Convenience stores are found in both urban and rural regions throughout South America. They provide a handy spot for customers to buy cigars and cigarillos without having to travel to specialty cigar shops or tobacco stores, which may be less prevalent or further distant. Cigars and cigarillos are frequently regarded as impulse purchases. Customers may purchase these products spontaneously if they are visible at the checkout counters of convenience stores. Convenience stores are often found in high-traffic places such as bustling roadways, transportation hubs, and gas stations. This posture helps them to draw a regular stream of customers, many of whom will buy cigars or cigarillos during their visit.

Companies Covered in this report:
Scandinavian Tobacco Group A/S, PT Djarum, Imperial Tobacco Group plc, The Japan Tobacco Inc., ITC Limited, Villiger Sohne AG, Altria Group, Inc., Philip Morris International Inc.

Considered in this report:
• Geography: South America
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• South America Cigars and Cigarillos market Outlook with its value and forecast along with its segments
• Country-wise Cigars and Cigarillos market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Country covered in the report:
• Brazil
• Argentina
• Colombia

By Type:
• Cigars
• Cigarillos
• Little Cigars

By Flavour:
• Tobacco/ No Flavour
• Flavoured

By Price Range:
• Mass
• Premium

By Distribution Channel:
• Speciality Store
• Hypermarket/supermarket
• Convenience Stores
• Online
• Others

The approach of the report:
This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations, and organisations related to the Cigars and Cigarillos industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.



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