Our perception of the market, for the year Chateau Diadem is born.
It is no news that the pandemic had a huge impact on our business. The luxury brand sales decreased between 20 and 30% due to farm closures, shipping impossibilities, etc… Also, customers around the world moved to online purchasing which culminated in the closure of several specialized stores. It was a tough time for the business.
The good news is that the future is bright. According to The Grand View Research, the global luxury cigar market is expected to expand at a compound annual growth rate (CAGR) of 7.2% from now until 2028.
Today’s Luxury Cigar Market overview
Looking into the main types (machine-made, and hand-rolled cigars) The hand-rolled segment held the largest revenue last year with over 75.0% share and is expected to maintain its lead.
The explanation seems rather simple: Aficionados are into the taste, the body, the flavor, and the evolution contained in each adventurous puff of a long-filler smoke.
Read more about the anatomy of cigars.
Let’s also not forget the rich culture behind our business along with the depth of the research that most smokers undertake in determining the aromas, adjusting the cut, and lighting a cigar. These efforts go beyond just a quick “smoke”. Smokers are living a story, admiring a real process, and honoring a noble craft. Our clients are poets able to analyze every aspect until the very ash of our product.
According to this same study by The Grand View Research The luxury segment of the market was valued at USD 11.61 billion in 2020. The region with the highest consumption in North America, with the largest revenue share of 30%, in 2021.
According to the Cigar Journal, as of 2020, more than 4,553 cigar lounges were operating in the U.S. Today acceptance of smoking in public spaces has shifted smokers to search for designated spaces to enjoy their passion for stogies. From classic chesterfield furnished salons to the most modern and contemporary lounges, the environment looks interesting in the future to come.
No judgment, no bothering, just pure enjoyment evolving in environments that are curated to host this passion.
Another interesting aspect is the growing interest in cigars and cigarillos amongst women and millennials. Staging the perfect picture to post on Instagram, celebrities like Mike Tyson or the hard rock band Metallica have launched their own brands helping the democratization of the hobby, while building sustainable growth within the market.
Like Chateau Diadem, new brands are taking the lead to bring smokers worldwide great tobacco blends from Nicaragua, Honduras, the Dominican Republic, and more, all of which tell a compelling story. With Conviction we decided to blend the best leaves from different countries instead of crafting a puro, to get the closest version of what we think is a flavorful and evolutive cigar
Within the cigar lifestyle industry, there is also an enormous amount of creativity poured into developing accessories for aficionados. From high-tech to old-school lighters, guillotines, ashtrays, cigar-holders, humidors, cases, and kits, the options are wide and varied. And it is not only independent designers and traditional brands that are developing these accessories. The emerging cigar houses are developing their own unique view on gadgets, enriching the look and feel of this unique lifestyle.
Conclusion:
After one of the biggest crises of our times, the future of our profession looks not just promising but fun, diverse, and modern. As young individuals and women are showing more interest in the magic of our world, our options to grow the business are boundless. From carefully designed spaces to gadgets, only the brand’s creativity and desire for diversification are the limits. For those open to adapting to these new consumers and their vision of the cigar lifestyle, the business goes further beyond. At Chateau Diadem and in the future, we look forward to sharing our next sizes and new blends, along with our new accessory collections, and why not one day, open the doors to our version of a cigar lounge.
Comments