Over the past decades, perceptions of smoking have drastically evolved. During the 1950s and 60s, it was common to see people smoking wherever you went. This was further amplified thanks to the films and movies of the time that associated cigarettes or cigars with Hollywood coolness, glamour, and luxury. Luxury tobacco products also emerged to offer a premium experience to smokers with a more refined taste. However, as the health impacts of smoking became more apparent, public opinion became much more negative.
However, that didn’t mean smoking disappeared from view; in fact, luxury tobacco products like cigarettes and cigars are still going strong. A report from Market Research Future notes that the luxury cigar market is projected to be valued at $22.2 billion in 2032 and will grow at a rate of 7.50% from 2023 to 2032. High-end hotels offering cigar lounges and the availability of luxury cigars online are currently driving the market. With smoking still prevalent despite its well-known risks, why has the luxury tobacco market continued to thrive?
Luxury tobacco as an experience
The luxury tobacco market has still managed to survive despite declining smoking rates and a negative stigma surrounding the act of smoking. Today, tobacco companies are creating higher quality products and experiences that target curious smokers. Companies are also using organic, natural, and additive-free tobacco labels, which are driving the sales of luxury cigarettes.
Luxury tobacco also often comes with luxurious experiences. Luxury cigars can be bought and smoked at high-end hotel lounges or upscale cigar bars in major cities around the world, offering a premium location to smoke. Cigar rooms have become a popular feature of these lounges. Being able to smoke a premium tobacco product in a luxurious environment helps drive the market and keeps it thriving. With younger adults becoming more interested in these experiences, growth is set to continue.
What about alternatives?
Alternatives to cigars and cigarettes rose in popularity as smoking fell out of favor in the public eye. E-cigarettes like those from JUUL or the disposable vapes from Elf Bar were seen as a good alternative to traditional smokes. Smokeless alternatives like nicotine replacement therapy (NRT) products like nicotine gum, patches, pouches, lozenges, and sprays also emerged in the market to aid in smoking cessation. Despite the many alternatives, luxury tobacco still holds an appeal to smokers who enjoy the premium experience.
To counteract the tobacco industry, many NRT companies are highlighting their own appeal. ZYN and Rogue nicotine pouches are bestsellers because they are discreet, tobacco and smoke-free, and easy to dispose of. These pouches are less frowned upon in public, and as they are made with plant-based fibres, they have a lower environmental footprint than tobacco products like premium cigarettes.
Other NRT products like nicotine lozenges and gum are also amping up their game to redefine quitting. Blip lozenges and gum are repackaging smoking cessation as something cool for the modern generation instead of the more mundane, medical vibe it can give off. Though alternatives may not have the advantage of offering a luxurious experience like premium cigars or cigarettes, the quality and branding help them compete against luxury tobacco products.
What’s next for smoking?
Luxury tobacco products may have yet to fall completely out of fashion, but increasing bans and stricter regulations are curbing their use in public. The promise of a premium experience will not stop the policies from being enforced as public health becomes a bigger concern. Our “World of Cigars… Pure Luxury or Popular Passion?” post highlights that cigars, which are seen as a more exclusive luxury compared to cigarettes, are also facing tighter restrictions. It may become much more difficult to smoke these high-end products, even in a controlled environment.
Despite the increased awareness of the health issues and competition from nicotine alternatives, the luxury tobacco industry will continue to thrive. Luxury smoking is considered a way of live rather than simply a recreational habit.
Article edited by Mark Webber