Dutch luxury cigars market hit a value of €7 million in 2012

Press Release   •   Jul 11, 2013 09:21 BST

Sales within the Dutch luxury cigars market reached €7 million in 2012, representing a 6% decline in current value over 2011.

Luxury cigars continues to register a decline in 2012 in large part influenced by the economic slowdown affecting the country and the fact that more Dutch consumers are restricting purchases of expensive items. Unlike standard tobacco, luxury tobacco has a relatively more positive image, seen by consumers as a stylish and self-gratifying product.

According to a recently released report, 'Luxury Cigars in the Netherlands,' sales declined in 2012 but were still performing better than standard cigars. Manufacturers streamlined efforts to promote luxury tobacco, including handmade or premium brand cigars by introducing more products and launching in-store promotional activity such as special editions.

Sales of luxury cigars are driven by handmade cigars. Handmade cigars are showing the highest growth in the category spurred by manufacturers promoting these products. Despite their higher price, the Dutch are willing to smoke less but purchase higher quality products, interested in the origin and materials used in the production process.

Manufacturers and retailers recognise a potential for growth in luxury tobacco providing consumers in the Netherlands are more educated about products and types. Together with retailers, manufacturers are working to promote luxury tobacco through tailored promotions when releasing new variants or for sampling sessions in cigar clubs.

Dutch luxury tobacco consumers are more interested in trying higher quality variants and also learning the story behind the production process and the origin of the materials used.

Dutch males represent the main consumers for luxury tobacco, usually people aged 35 years and over. Luxury tobacco is witnessing growing interest from younger Dutch males who discover cigars as an alternative to cigarettes, attracted by the more positive image as a symbol of style and/or status.

Although much smaller, the consumer base of Dutch women who also show an interest in quality and luxury products in growing.

Large multinationals dominate the market for luxury tobacco in the Netherlands. While Agio Cigars is the largest manufacturer, the company focused mainly on the mass market and mid-price cigar segments. Swedish Match is the largest manufacturer present with premium brands such as Rietmeester.

Altadis SA (owned by Imperial Tobacco) is the largest distributor of cigars in the premium segment. Montecristo and Romeo y Julieta represent the two main brands distributed in the Dutch market.

For more information on the Dutch luxury cigars market, see the latest research: Dutch Luxury Cigars Market

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