Premium Cigar Imports To The United States Reach 467 Million For 2023

[JohnS]

According to latest from Cigar Aficionado, the cigar industry is neither booming, nor crashing. Read on below...

Premium Cigar Imports To The United States Reach 467 Million For 2023

The handmade cigar industry showed a slight increase indicating an essentially flat market

Mar 15, 2024 By Gregory Mottola

 

Photo/Cigar Aficionado

The cigar industry might not be booming in terms of growth, but it isn’t crashing either. The year-end numbers for premium cigar imports into the United States for 2023 have come in, and they’re slightly higher than 2022, indicating a market plateau amid a still relatively robust cigar market. 

According to a report issued by the Cigar Association of America, the United States imported an estimated 467.6 million premium cigars in 2023, a 0.7 percent increase over 2022. While the gain is minimal—essentially flat—it signals a few important factors. Primarily, the market is not declining. Additionally, the premium cigar industry has been able to maintain exports above 400 million, high numbers when looking back at the industry’s last 30 years.  

Between the top cigar-producing nations, the gains were strongest for the Dominican Republic, which had a 15.8 percent increase to 149.2 million cigars. Nicaragua and Honduras, however, had declines. Nicaragua, the leading producer of premium cigars for the U.S., exported 246.3 million cigars in 2023—a reduction of 1.8 percent when compared to the previous year. Honduras went down a notable 16.2 percent from 83.1 million cigars in 2022 to 69.7 million cigars last year.

This marks the fourth consecutive year of growth in cigar imports, and the third year in a row that imports exceeded 400 million units. The cigar market has been strong since 2020, which saw a 7.9 percent increase in exports despite the pandemic and disruptions in the production chain. 

The year 2021 was even better, with a 25.2 percent increase in exports, to 456 million. The growth was attributed to the pandemic, which had an unexpected effect on the cigar industry: people who worked from home smoked more. A lot more. 

“It is true that overall, there has been a clear slow down, but I see it in a positive way,” says Javier Estades, president and CEO of Tabacalera USA, which produces brands such as Montecristo, H. Upmann and Romeo y Julieta in Nicaragua, Honduras and the Dominican Republic. “First of all, because we were experiencing very strong growth during previous years, post Covid-19. Therefore, I believe that 2023 has been a consolidation of that incremental consumption the industry generated. Secondly, that proves the premium cigar industry is solid and stable. We foresee continued consolidation in 2024 without significant changes in the market.” 

Source: https://www.cigaraficionado.com/article/premium-cigar-imports-to-the-united-states-reach-467-million-for-2023