Saudi Arabia Cigars and Cigarillos Market Research Report, 2028

Cigar and cigarillo consumption in Saudi Arabia has traditionally been a niche market, with relatively low prevalence compared to other tobacco products. This can be attributed to the strict regulatory framework and cultural norms in the country that discourage smoking, as well as the prevalence of other forms of tobacco consumption, such as shisha (water pipe) and cigarettes. Additionally, religious and cultural factors play a significant role in discouraging smoking, as Islam, the predominant religion in Saudi Arabia, prohibits the consumption of intoxicants, including tobacco. According to the World Bank, the prevalence of cigarette smoking has remained relatively the same in the last two decades. In 2013, a national survey revealed that 12.2% of Saudi adults are smokers. In a study published in 2021, 14.1% of the respondents aged 15 years or older smoked cigarettes. The latest survey, conducted by the Saudi Food and Drug Authority in 2018, estimated the adult smoking prevalence at 21.4%.7 The WHO projects that the male smoking prevalence will reach about 24% by 2025. There is a growing evidence that raising and enforcement of taxes on tobacco products that target demand-reduction has emerged as the most efficient of the WHO Framework Convention on Tobacco Control (FCTC) MPOWER measures. According to the research report "Saudi Arabia Cigars and Cigarillos Market Overview, 2028," published by Actual Research, the market was valued at more than USD 500 Million in 2022. The cigar and cigarillos market in Saudi Arabia had been experiencing a notable growth trend, driven by changing demographics, evolving consumer preferences, and an increasing adoption among younger generations. This shift in the market dynamics could be attributed to several factors. There has been a significant change in the demographics of Saudi Arabia, with a rising number of younger adults entering the consumer market. This demographic group often seeks novel and unique experiences, and cigars and cigarillos offer a departure from more traditional forms of tobacco consumption. The appeal of trying something different and potentially associated with luxury and leisure may attract younger consumers. Also the Global trends in the popularity of premium cigars and cigarillos have made their way into Saudi Arabia. Influenced by international travel, exposure to diverse cultures, and the desire for more upscale, sophisticated leisure activities, these products have found a niche following among those seeking a unique and refined smoking experience. Moreover, the influence of social media and marketing strategies by tobacco companies has played a role in creating a perception of cigars and cigarillos as trendy and exclusive. The use of visually appealing packaging and branding, combined with social media campaigns, has piqued the interest of younger consumers and fueled their adoption.

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The market is segmented based on the product type, into Cigars, Cigarillos, and Little Cigars. Cigars have established their supremacy in the market among these. Cigars have long been popular with consumers all around the world because of their unique and complex flavors. Cigars are attractive not just because of the tobacco but also because of the social and cultural aspects of smoking them. Cigars are a popular symbol of refinement, luxury, and leisure that appeal to a wide spectrum of consumers, from lifelong enthusiasts to infrequent indulgers. They are a top pick for people looking for a high-end tobacco experience because of their rich and nuanced flavors and the variety of sizes, shapes, and blends available. As consumers look for a more practical and smaller option to regular cigars and cigarillos, little cigars are expected to enjoy substantial development in the upcoming years. Smaller-sized tobacco products are a popular option for people with hectic schedules or those seeking a more manageable smoking option because they provide a quick and enjoyable smoking experience. In the realm of cigar and cigarillo consumption, the flavor type is a critical distinguishing factor. This segment is broadly categorized into two main groups; Flavored and Tobacco (No Taste). Interestingly, while the market features a variety of tantalizing flavor options, it is the Tobacco (No Taste) category that currently exerts its dominance. The rich history and cultural significance of cigars and cigarillos frequently contribute to this desire for conventional, unflavored tobacco products. Flavored cigarillos, with their infusion of diverse and enticing flavors, have gained popularity among consumers looking for a more diverse and novel smoking experience. On the basis of pricing, the market is segmented into mass priced and premium priced cigar and cigarillos. Mass-priced cigarillos are a type of little cigar that are renowned for being easily accessible and reasonably priced. Customers looking for an affordable substitute for traditional cigars that nonetheless provide a convenient and enjoyable smoking experience are especially drawn to these goods. A broad variety of flavors and blends are offered in mass-produced, cheap cigarillos, which are frequently manufactured by machines and appeal to a broad spectrum of consumers. The premium cigar and cigarillo market is anticipated to experience high growth in the coming years. This shift is influenced by a combination of factors. Discerning consumers are increasingly valuing the quality, craftsmanship, and unique attributes associated with premium-priced products. Additionally, the premium segment is seen as a status symbol and a symbol of luxury, attracting those who are willing to invest in a higher-quality smoking experience. Furthermore, evolving consumer preferences, coupled with a willingness to pay a premium for exceptional quality, are propelling the growth of premium cigar and cigarillo options. Based on the distributional channels, the specialty stores have dominated the market as it provides a wide range of premium and niche brands, appealing to connoisseurs and enthusiasts. Shopping for cigars at specialty stores provides a unique customer experience, with knowledgeable staff who can offer recommendations and guidance, enhancing the overall enjoyment of the product. However the online sale has also gained the popularity in the market and is anticipated to grow with the fastest market CAGR. Considered in this report: •Geography: Saudi Arabia •Historic year: 2017 •Base year: 2022 •Estimated year: 2023 •Forecast year: 2028

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Kripa Shah

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Aspects covered in this report: •Saudi Arabia Cigars and Cigarillos market with its value and forecast along with its segments •Various drivers and challenges •On-going trends and developments •Top profiled companies •Strategic recommendation By Type: •Cigars •Cigarillos •Little Cigars By Flavor: •Tobacco/ No Flavor •Flavored

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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 as well as secondary research. Initially, secondary research was used to get an understanding of the market and list out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, and annual reports of companies, analyzing the government-generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic 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 doing primary calls to consumers by equally segmenting consumers into regional aspects, tier aspects, age groups, and gender. Once we have primary data with us we started verifying the details obtained from secondary sources. Intended audience: This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the Cigars and Cigarillos industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.