Amid the Covid-19 crisis and the looming economic recession, the global cigar market is projected to reach $17.3 billion by the end of 2027, expanding at a compound annual growth rate (CAGR) of 1.3 percent over, according to a new report published by Research and Markets.
An unusual period in history, the coronavirus pandemic has unleashed a series of unprecedented events affecting every industry. According to the authors of the report, the cigar market will be reset to a new normal which going forwards in a post Covid-19 era will be continuously redefined and redesigned.
The United States is forecast to readjust to a 0.7 percent CAGR. Within Europe, Germany will add more than $21.8 million to the region’s size over the next seven to eight years. In addition, more than $33.6 million worth of projected demand in the region will come from other European markets.
In Japan, the cigar segment will reach $1.1 billion by the close of the analysis period. Amid the growing push for decoupling and economic distancing, the changing relationship between China and the rest of the world will influence competition and opportunities in the cigar market.
Against this backdrop and the changing geopolitical, business and consumer sentiments, the world’s second largest economy will grow at 3.2 percent over the next couple of years and add approximately $620 million in terms of addressable market opportunity.