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Wholesale Cigars

The cigar industry is a significant contributor to the US economy, with impressive revenue generation of $12,700m in 2023.

Google Trends also shows a continuous high demand for cigars over the past five years.

This is a clear indication of the immense potential of the cigar industry, which seems to be a lucrative venture for retail businesses.

Wholesalers can also benefit from this booming market. However, to thrive, you must consider the market drivers and latest trends in the cigar industry.

Emerging Trends in the Cigar Industry

Rise in the Demand for Luxury Cigars

As a result of increasing disposable income, people are more willing to invest in premium/luxury cigars.

This is owing to the fact that premium cigars are pure (wrapped in 100% natural tobacco leaf) and handmade, with no filters. Also, these provide a better smoking experience than conventional cigars.

Offering premium cigars in your retail space may cause quick inventory turnover and high-profit margins.

Prevalence of Flavored Cigars among Young Adults

With almost 200 young people starting smoking every day in the US, the demand for cigars has skyrocketed.

The popularity of flavored cigars has contributed to this trend, as 47% of young adults preferred flavored cigars in 2017.

Also, peer influence and marketing on social media by celebrities have a significant impact on its market.

As a retailer, adding flavored cigars to your inventory can boost profits by meeting high customer demand.

Increase in Female Cigar Smokers

According to the World Health Organization, around 20% of the world's more than 1 billion smokers are women, and this number is growing.

Targeted advertisements for women smoking and social acceptance of women smoking have led to a dramatic increase in cigar demand.

For retailers, this is the best time to add cigars to their product offerings to boost sales of their business.

Impact of Digitalization: Boost in Sales

As a retailer, you can acquire a significant number of sales by selling cigars to hypermarkets, supermarkets, specialty stores, or convenience stores.

However, creating an online presence can further boost the sales of your cigar business. You can build your online store and list all products with enchanting images.

Customers can browse through the products and place orders 24/7, hence providing a growth opportunity for your cigar business.

Legal and Regulatory Guidelines in the USA

Every retailer who sells tobacco and smoking products is required to obtain a retail cigarette and tobacco license and must renew it annually.

It is mandatory to obtain a license for each retail location you own or operate. For instance, if you operate several stores in different locations, you must obtain a separate permit for each store location.

For a retailer, advertising tobacco and smoking products on electronic media such as television, radio, or any social media platform is prohibited.

Furthermore, the FDA has implemented some regulations for selling cigars in retail spaces, such as:

  • Customers aged 21 or younger are NOT ALLOWED to purchase cigars.
  • Vending machines selling cigars are permitted in adult-only facilities.
  • NEVER provide complimentary samples or cigar components to customers.
  • Do not sell cigars without labeling a health warning on the packaging.