United Kingdom (UK) Cigars and Cigarillos Market Research Report, 2028

In United Kingdom, in 2021, 13.3% of people aged 18 years and over, smoked cigarettes, which equates to around 6.6 million people in the population; this is the lowest proportion of current smokers since records started in 2011 based on our estimates from the Annual Population Survey (APS). Smoking in the United Kingdom involves the consumption of cigarettes and other forms of tobacco in the United Kingdom, as well as the history of the tobacco industry, together with government regulation and medical issues. According to the Cancer Research UK, there are 14% of adults who currently engaged in smoking. Along with this, smoking is the largest cause of cancer in UK with 15% of the overall diseases. UK signed and ratified the WHO Framework Convention on Tobacco Control (WHO FCTC) in 2004. Since then, the UK is considered to have ‘completed’ measures linked to monitoring tobacco use, developing health warnings, mass media, taxation and smoke-free environments and has ‘moderately’ completed measures for cessation programs and advertising bans. UK has the highest rate of taxation on cigarettes compared to other European countries, with 16.5% of the retail price plus £5.26 on a packet of 20. Along with this the health awareness campaigns had played a significant role in shaping public attitudes toward smoking. These initiatives aimed to educate the population about the health risks associated with tobacco consumption, highlighting the dangers of smoking not only cigarettes but also cigars and cigarillos. Such campaigns, along with the widespread understanding of the detrimental health effects of tobacco, contributed to the overall decline in tobacco use in United Kingdom. According to the research report "United Kingdom Cigars and Cigarillos Market Overview, 2028," published by Actual Research, the market is anticipated to grow with more than 3% CAGR from 2023-2028. UK had a sizable market for cigars and cigarillos, and these tobacco products were highly valued. Due mostly to consumer preferences and health concerns, traditional cigar consumption had been declining. Cigars were frequently regarded as luxury goods or used on special occasions by consumers. Contrarily, cigarillos remained a rather common smoking option, particularly among younger persons. For certain demographic, cigarillos were more appealing due to their convenience and wide range of flavors. UK consumers were more likely to experiment with premium, flavored cigarillos as they looked for a more sophisticated and varied smoking experience. This change in consumer demand for premium cigarillos was linked to a number of things, including evolving lifestyles, a desire for diversity, and an appreciation for the fine craftsmanship and distinctive tastes these products offer. To meet the changing demands of UK customers, tobacco industry manufacturers responded to this trend by offering a greater selection of premium cigarillo alternatives.

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The market is segmented based on the Types; into Cigars, Cigarillos, and Little Cigars. Cigars are dominating the market as of 2022. Cigar consumption in the United Kingdom surpasses that of little cigars, reflecting distinct preferences within the tobacco market. This divergence can be attributed to several factors, including cultural and historical influences. Cigars have a long-standing tradition in the UK, often associated with celebratory occasions, luxury, and a certain air of sophistication. Their larger size and the time required to savor them make them ideal for social gatherings and special events. In contrast, little cigars, which are typically smaller and often flavored, tend to attract a different demographic, such as younger smokers who may favor convenience and a milder taste. Additionally, regulatory and tax disparities between cigars and little cigars can impact consumer choices. Overall, the higher consumption of cigars in the UK reflects the enduring appeal of this classic tobacco product, deeply ingrained in the country's cultural fabric, while little cigars cater to a different niche market segment seeking alternative smoking experiences. The report is divided into two categories based on Flavor type: Flavored and Tobacco (No taste). Currently, tobacco cigars and cigarillos rule the market. The addictive component of tobacco is nicotine, and many smokers smoke primarily to state their nicotine cravings. The taste of tobacco may be more significant to consumers than the flavor itself. Social norms and peer pressure can have a big impact on how people choose products. Smoking cigarettes with tobacco flavors may be more socially acceptable or seen as "cooler" in some cultures or social circles. Some smokers find the sensory experience of a tobacco-flavored cigarette more satisfying, such as the sensation of inhaling and exhaling the smoke, the smell of burning tobacco, and the tactile experience of holding and lighting a traditional cigarette. In some places, there are regulations or bans on flavored cigarettes, while tobacco-flavored ones may still be available. This can limit the choices available to consumers and drive them towards tobacco-flavored options. Along with this the market of flavored tobacco is also emerging and has the great CAGR for forecast for the coming years. Flavored tobacco products also typically have bright, colorful packages and are often sold individually and cheaply, making them even more appealing to youth and young adults. Youth and young adults use flavored tobacco products more than other age groups. Based on price range, the market is divided into two segments: mass and premium range. The robust and stable economy of the United Kingdom has given consumers more disposable income. The mass price range has long maintained a leading position in the present cigar and cigarillos market, appealing to a broad and diverse consumer base looking for cost-effective solutions. But there will be a significant change in the upcoming years. Due to changing consumer tastes and a rising demand for sophistication and quality, the premium pricing range of cigars and cigarillos is set to become the dominant force. This change can be ascribed to three factors: rising interest in luxury and lifestyle options, a move toward more upscale and carefully planned smoking experiences, and rising demand for premium tobacco products. The premium market is predicted to grow as discriminating customers look for artisanal, high-quality products, which will create both opportunities and difficulties for producers and merchants. This shift highlights how dynamic the industry is, reflecting shifting consumer preferences and a growing understanding of the subtler aspects of tobacco and cigarillo culture. The market is divided into four segments based on the distribution channel: specialty stores, hypermarkets/supermarkets, convenience stores, online, and others. In the present distribution landscape of the cigar and cigarillos business, specialty shops have maintained a strong position and the largest market share. This dominance is attributable to the careful and informed customer service that these establishments usually provide, which satisfies the specialized preferences of cigar enthusiasts. Supermarkets and hypermarkets are not far behind, and they have made a substantial contribution to the availability of these products to a wider consumer base due to their accessibility and convenience. However, we anticipate a big change in the distribution channels in the coming years, which will be a noticeable shift. Online sales have the potential to become the market leader and take center stage. This shift is mostly the result of shifting customer tastes and habits, which are typified by an increasing reliance on e-commerce due to its wide selection of products, affordable prices, and ease of use.

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Kripa Shah

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Considered in this report: •Geography: United Kingdom •Historic year: 2017 •Base year: 2022 •Estimated year: 2023 •Forecast year: 2028 Aspects covered in this report: •United Kingdom 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

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By Flavor: •Tobacco/ No Flavor •Flavored 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.