Even though the industry is still facing the consequences of lockdown, climatological inclemencies, logistical chaos caused by COVID-19, and inflation in the United States is the highest in the last 40 years, the cigar market is still expected to grow by 4.8% and generate worldwide revenue of US$22.43bn in 2023, According to STATISTA,
Prices increase daily from milk to fuel, and premium cigars are not spared. After a year of remarkable price augmentation in the premium cigar industry, some premium cigar brands have announced another price hike effective this January. Such is the case of Rocky Patel, JC Newman, and Habanos S.A.
Online distribution channels and private cigar lounges are keys to gaining ground for premium and luxury cigars. Excellent user experience, both on and offline, goes hand in hand with the principles of a cigar smoker. We don't want to be pushed out; we like to take time to learn, enjoy, and share. When we find a space where we are welcome to light our cigars and spend as much time as we need enjoying them, we are likely to stay longer and return. When a sales clerk takes the time to explain to us the story behind a brand, the uniqueness of a vitola, the implicit flavors of a wrapper, and some tips, we are likely to come and buy from them every time. But with time constraints and sales goals of brick-and-mortar shops, this customer experience is expected to disappear. That's one of the reasons why online shops are growing.
We can read reviews from people around the globe, compare prices, access perks, and more while spending as much time as we want in the purchase process. The better the UX (user experience) of the e-shop, the more we are buying and returning for more. Cigar aficionados are curious-minded beings. Always open to trying a new cigar and sharing impressions and findings.
The mission for 2023 should be to create the ultimate online purchase experience for cigar aficionados.
Less or no advertising popping up from every corner of the site.
Clear, unbiased information about each brand and vitola.
Access to reviews in all languages and from all regions.
The commitment to a fantastic delivery experience (protected packaging, precise delivery dates…)
Build loyalty amongst new smokers
Conclusions
Even though 2023 arrives with unsolved problems caused by the pandemic and global inflation of the markets, the premium cigar business is expected to grow by 4.8%.
Established brands will increase their prices this year while new brands appear in the premium cigar landscape, bringing fresh concepts to the growing millennial and female audience.