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Sales within the French luxury cigars market drastically affected by the smoking ban

Press Release   •   Mar 15, 2013 09:30 GMT

Sales within the French luxury cigar market declined by 6% through 2012, to reach a value of EUR63 million.

Like other tobacco products, luxury cigar sales in 2012 were still affected by the law banning tobacco in public areas. Since its implementation, there have been a smaller number of places to smoke cigars, which undeniably continued to impact demand for these products.

Like other tobacco products, luxury cigar sales in 2012 were still affected by the law banning tobacco in public areas. Since its implementation, there have been a smaller number of places to smoke cigars, which undeniably continued to impact demand for these products.

Year after year, cigar smoking clubs have been disappearing in France as people are no long allowed to smoke inside. With the smoking ban, owners of outlets would have needed to invest in new outdoor spaces, which in general they did not do. However, there are still some local outlets where people can smoke, such as Yat de Paris, Espace Berger and Cubana Café in Paris.

In France, one of the most popular brands of luxury cigars is Havana. However, Montecristo, another Cuban brand is also well recognised and appreciated. With a longstanding tradition, Cuban cigars are popular and recognised worldwide, including in France, for their flavours and qualities (texture, smell and weight).

Advertising of tobacco is prohibited in France, thus including all kinds of publicity for cigars. Sales through the internet of this type of product are also not allowed by law.

Several factors will continue to push down demand within the French luxury cigars market over the next five years, with volume sales expected to decline at a compound annual growth rate (CAGR) of 15% through to 2017.

With the smoking ban law, consumers are encouraged to stop their habit or at least to reduce consumption. There are also fewer cigar smoking clubs. Finally, prices tend to increase thus also inhibiting a stronger performance of this market in volume terms.

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

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