The market for large cigars is not as stable as other tobacco sectors and, in failing to appeal to a younger generation of smokers, it looks likely to record an annual pattern of slowly declining sales.

However, the sub-sector of smaller cigars is still creating some interest, and this is, in part, linked to legislative changes to the tobacco market.

"The growth of the miniature cigar at the expense of the 'large puff' is evident," says Calum Kirk, tobacco category trading manager at The Co-operative Group.

"Given that the ban on smoking in public places in England and Wales is just around the corner, we expect the large cigar market to continue to struggle."

The ban is expected to have a marked effect on the large cigar market in particular, mostly because of the amount of time it takes to smoke them. This is driving traditional cigar smokers into the quicker-to-smoke miniature cigar market.

Imperial Tobacco's key miniature brand is Café Crème. Iain Watkins, trade communications manager, boasts that the blue variant, which is a £70m brand, grew 5% in value last year, indicating the strength of this sector of the market.

As well as traditional cigar smokers, the miniatures market is also appealing to a younger group of smokers who are keen to branch out of their usual cigarette brand and add to their smoking repertoire. Data collated for Gallaher by Omnimas in 2006 indicates that 11% of smokers of miniature cigars are aged between 18 and 24 years old, with half of smokers under the age of 44.

In order to cater for the growing number of cigarette smokers looking for more exotic tastes, producers also recognise the need to adapt cigars to better suit this consumer group - and not just in size.

"The miniatures market can better cater to cigarette smokers crossing over into cigars because they can offer a cigar with a filter," says Watkins. "This has been important because this group of smokers likes filters."

Though the primary trend in cigars has been focused on the miniature variant there has also been a move towards a smoother smoke, according to Jeremy Blackburn, trade communications manager at Gallaher. He highlights the fact that the Hamlet Smooth miniature variant is recording growth.

Pipe tobacco is struggling with similar challenges to the cigar, though it is a much smaller market in value. Over 50% of the volume for this market goes through the multiple retailer, according to Blackburn, but the market continues to record a decline in sales. n