The global cigar market remains an extremely attractive and resilient market, with an industry worth $20 billion, accounting for 3% of the global tobacco market, artisanal cigars worth $1.5 billion, accounting for 15% of the cigar industry, and high-end artisanal cigars worth $500 million. As demand continues to drive in the Asia-Pacific region, the cigar industry is expected to grow at a CAGR of 7% in the future.
In terms of consumption amount, in 2017, China's cigar consumption accounted for 26% of the world's total. In terms of consumer value, the United States is on a downward trend by the end of 2022, from 45% to 41%, while China is expected to rise from 26% to 35%. It can be seen that in the next few years, the development of China's cigar market is very fast. From the perspective of global consumption, North America accounts for 69% of the world, China only 13%, in the future North America may fall to 66%, China is expected to rise to about 19-20%. From the data point of view, consumption and value is very unbalanced, the United States accounts for far more than its value ratio, and although China's consumption is very low, but the consumption unit price and amount are very high, Chinese cigars are fully capable of taking the high-end route. At present, more and more luxury brands cannot fail to pay attention to the Asia-Pacific market, especially the Chinese market. Cigars are also in this stage of development because of the growing number of middle classes in China.
The development of the cigar industry is inseparable from China, and the Chinese cigar market is also inseparable from international exchanges and cooperation. The International Cigar Fair in Shenzhen in November 2019 offers such a precious opportunity. The expo invited Cuban cigars, American EPC cigars, Nordic tobacco, Davidoff, continental tobacco, American tobacco and so on. Cuban cigars have maintained supremacy in the cigar kingdom with their long history, and a cigar with the word Havanas is synonymous with the best cigars in the world. However, with the development of the cigar market, non-ancient cigars continue to be produced, especially in regions such as Dominica, Nicaragua, Honduras, Ecuador and other regions, they have cultivated a very mature cigar industry, which has a tendency to go hand in hand with Cuban cigars.
The popular non-archaic cigar, the Dominican cigar
The Dominican Republic is famous for producing and exporting high-quality cigars and is one of the world's largest cigar producers and exporters, known as the "Cigar Nation". Tobacco production and processing is one of the most traditional economic activities in the country's history, and after more than two centuries of development, the tobacco industry has been deeply integrated into Dominican traditions, culture and people.
To ensure the quality of the cigars, the Dominican cigar industry has built a strong vertically integrated process between tobacco farmers and free zone companies. In addition to this, cigar producers not only buy tobacco raw and auxiliary materials from Dominica, but also other major production components as well as packaging, trademarks and cigar rings with local design features, and the tobacco industry is becoming more and more influential in the Dominican social and economic fields. In the Dominican Free Zone, there are currently more than 80 cigar producers and tobacco handlers, directly creating more than 30,000 jobs and exporting more than US$850 million in 2018.
Since the establishment of diplomatic relations with China, the Dominican Republic has actively promoted the entry of Dominican cigars into the Chinese market. The country is also the host country of the cigar fair, and they have brought various cigar brands such as Dominican flowers, Aurora, Merengue Cigars and so on. Its booth design is unique and refreshing, and the cigar rolling masters perform on site, presenting the unique charm of top multi-cigars. The exhibition hall is full of people, and the audience who come to learn about Dominican cigars is endless, and the representatives of various enterprises from time to time introduce the development of the country's cigar industry and the experience of brand cultivation to the audiences who come to the exhibition.
It is reported that the country's major international investment companies include Davidoff, Imperial Tobacco, Scandinavian Tobacco Group, Arturo Fuente, Swedish Match Company, General Cigar Company and so on. Thanks to years of experience and sustained investment by major brands, Domini has created a popular non-vintage cigar based on the tobacco leaves of its excellent natural environment.
Representative of non-ancient cigars - Davidoff cigars
As we all know, Davidoff is a master of cigar blending, a representative of non-ancient cigars, and is known worldwide for providing cigars with unique tastes and flavors. The company has 75 flagship stores, 150 cigar clubs, more than 600 authorized distributors worldwide, and produced more than 41 million cigars in 2018. At the fair, Davidoff's booth was designed with a stylish atmosphere, and the brand products on display included core Pillar Classic Series, Discovery Pillar Exploration Series and Iconic Pillar Highlight Series.
Davidoff's most exclusive cigar platinum collection ever made, and the Royal Series, which takes 10 years to travel from seed to rolled cigar, is a unique cigar for special celebrations. Since 2012, Davidoff has also launched the "Year of China • Year of the Dragon" series in the United States, the "Year of the Snake" series worldwide in 2013, and the "Year of China" series every year since then.
Davidoff cigars start with soil selection and seed cultivation and are grown primarily in Dominica and Honduras, with other sources including Nicaragua, Ecuador, Brazil, Mexico and Peru. The company uses 80 different seeds to produce more than 7 million different blends. Excellent quality and consistency, providing the highest standard of taste and enjoyment for eggplant guests.
Davidoff has launched 359 cigar products in the United States, 461 in Switzerland, and only 19 in China, and there is still a lot of room for growth in the future.
Davidoff opened China's first regular cigar shop at the Peninsula Beijing in 1995 and is also the first hand-rolled cigar brand to be listed in China, hosting numerous seminars/trainings/events over the years. Up to now, Davidoff has opened cigar stores in various parts of China, such as Beijing, Shenzhen, Suzhou, Nanning and other cities. Today, Davidoff has established a "One China" marketing platform in China, with dedicated financial and human resources in China, not only through actual activities, but also through social media activities, direct contact with end consumers, to further accelerate the development of Chinese cigar culture.
Nordic tobacco large size cigar
Nordic Tobacco has sales and production companies in 20 countries around the world and is the world's largest manufacturer of cigar and pipe tobacco.
The products brought by Nordic Tobacco at this expo are CAO Tide brand flathead series 660. The launch of this large cigar is intended to pay tribute to American motorcycle culture and won the third place in the 2015 US CA Cigar of the Year. The product uses Connecticut leaf coverings as eggplant coats, Connecticut-grown Cuban varieties of tobacco leaves as eggplant sleeves, and nicaragua and Dominican tobacco blends to formulate eggplant cores. Its rich taste, smooth taste, packaged in a wooden box, red and gray color scheme gives people a simple and generous feeling. The brand's Pilon series Robtu is more understated and luxurious, using ecuadorian high-quality tobacco leaves as eggplant clothes, Nicaraguan high-quality tobacco leaves as eggplant sets and eggplant cores, the taste is very pure, with intoxicating aromas.
Nordic Tobacco also exhibited the McNuddow-inspired collection. The brand has gained a good reputation since its inception and has also attracted many cigar customers at the exhibition site. The product has a medium to lower flavor, with eggplant cores and eggplant sleeves from Nicaragua, Indonesia and Mexico, and eggplant coats from Connecticut leaf coverings from Ecuador. This product is very cost-effective, the taste is light, like smooth cream, and it also exudes a smell of earth and a hint of spice, which is perfect for beginners to try.
Continental Tobacco Mini Cigar
Continental Tobacco is an independent, family-owned private company that operates a number of European tobacco companies. The company has a very long history, having been founded as early as the 1860s, is well known on the Hungarian domestic market and is actively engaged in export operations, and is now sold in more than 25 countries and regions around the world.
The Essenze cigars that Continental Tobacco exhibited at this fair were introduced in 2011. At present, this cigarillo has been introduced to the international market. Each box contains 20 cigarillos, including three different flavors: aromatic, vanilla and coffee, with three new flavors added in 2018: wild berry, mint and cool ice. Its tomato coats come from the high-quality Connecticut Shade variety grown in Ecuador. The true uniqueness of this product lies in its harmonious aromatic and tobacco-blended flavors, accompanied by a velvety smooth creamy smoky flavour that is very rich in texture and flavour. Many people see cigars as a process of enjoying time, but there are also some people who like the unique taste of cigars but do not have enough time to taste the whole traditional standard size cigar, so the Essenze mini cigar is the ideal choice for this group of smokers.
epilogue
The U.S. embargo on Cuba has given non-cuban cigars the opportunity to grow. But more importantly, non-ancient cigars are inherently powerful. They have superior natural conditions for tobacco cultivation, tobacco cultivation techniques, and a cigar industry that has matured after years of precipitation, which makes many non-ancient cigars no less than Cuban cigars.
This brought enlightenment to the development of Chinese cigars. Although Chinese-style cigars started late, imported cigar manufacturers and traders actively carry out technical exchanges and cooperation with domestic industrial enterprises in the fields of handicrafts, raw materials, products, technology, equipment and marketing, and cooperate in research and development of products, providing valuable support for domestic cigars to improve the production process and expand the international market. In the future, Chinese cigars are expected to become another heavyweight cigar style in addition to Cuban cigars and non-ancient cigars, let's wait and see!
Source: Cigar Hub Public Account Author: Su Jian