United States Cigar and Cigarillos Market

United States Cigar and Cigarillos Market Size Report – In a Glance

As per the survey report on United States cigar and cigarillos market, the market is expected to foresee a CAGR value of 7.7% during 2025-2035, and further generate a market size of USD 25.9 billion by the end of 2035. In 2025, the market size was value at USD 13.6 billion revenue.

• The United States cigar and cigarillos market’s growth is driven by rising trend of artisanal and flavored cigarillos.
• KDMI analyst’s growth analysis foresees rising demand for premium and flavored products as the growth drivers for United States cigar and cigarillos market.

United States (U.S) Cigar and Cigarillos Market Analysis

A cigar is a roll of aged, fermented tobacco leaves wrapped in a larger tobacco leaf, while cigarillos is a smaller roll of tobacco leaves, designed for a shorter experience and it is machine-made product. The major difference in cigar and cigarillos is size - cigar is relatively larger in size than cigarillos, and sometimes cigarillos come in added flavored form. The United States cigar an cigarillos market growth is driven by rising trend of artisanal and flavored cigars in the market among young adults and urban consumers. This rising trend of cigar and related product is driving the market growth. Imperial Brands, British American Tobacco, and Arnold Andre are some of the significant participants in the United States cigar and cigarillos market.

United States Cigar and Cigarillos Market Growth Drivers and Restraints

Growth Drivers

• Rising demand for premium and flavored products – The major growth driver for US cigar and cigarillos market is the growing demand for premium and flavored cigar products. Premium cigars are designed with high-quality tobacco leaves and are considered as luxury item that enhances person’s social status, sophistication, and leisure among affluent consumers. The growing demand for premium products has gained popularity in recent years, with the increased influence from social media and it has also become a stylish gift item for celebratory occasions. Moreover, flavored cigarillos are gaining traction of youth who mostly prefer affordable, milder taste, and flavor variety such as vanilla, fruit, chocolate, and menthol. This growing demand for both cigar and cigarillos among high-income group has contributed to the market growth.
• Expanding retail channels and online availability – With the expansion of e-commerce and retail sectors in the region, availability and accessibility of cigars and cigarillos has increased significantly. Due to growing demand for cigars among affluent individuals and for cigarillos among youth and high school individuals, there is a potential growth in convenience stores and specialized tobacco shops in the market, playing a major role in distributing products. Also, the expansion of online retail stores, has transformed consumer purchasing behavior with the accessibility of variety of products, competitive pricing, and doorstep delivery of premium cigars. The changing consumer lifestyle demand innovation in products like cigar and cigarillos which defines person’s social status.

Restraints

• Rising health awareness and stringent regulations – The major challenge for United States cigar and cigarillos market is the growing awareness of health risks such as mouth cancer and cardiovascular diseases associated with the consumption of tobacco and stricter regulations imposed by government for elimination of sales in the market. Government imposes stricter regulation on banning tobacco advertisements, high taxations, and flavor cigarillos ban in some areas. These factors slowdowns the market growth and promoted healthier lifestyle in the region.

United States Cigar and Cigarillos Market Segmentation

Our experts at KD Market Insights have segmented the United States cigar and cigarillos market research report as:

United States Cigar and Cigarillos Market Competitive Landscape

Some of the significant participants who top the United States cigar and cigarillos market share:

• Imperial Brands
• British American Tobacco
• Japan Tobacco
• Swisher International
• Swedish Match
• Altria
• Arnold Andre
• Agio Cigars
• J.Cortes Cigars
• Joh.Wilh.von Eicken
• Dannemann Cigarrenfabrik