June 2025: The Dominican Republic remains the world’s top exporter of premium cigars
The Dominican Republic remains the world’s top exporter of premium cigars, producing around 8.4 billion cigars each year – including 181 million handmade cigars and more than 8.2 billion machine-made cigars. 88% of the premium (handmade) cigars are exported to the United States and 10% to the European Union.
The cigar industry contributes 10% of the country’s exports and generates more than US$1.34 billion annually – second only to gold in exports. It is the largest employer in free trade zones, creating over 40,000 jobs in that sector and more than 110,000 jobs nationwide. The Dominican Republic produces five tobacco types and 21 varieties, including Dominican Olor, Havanensis, and Criollo. There are 160 tobacco-processing companies across 15 provinces, yielding over 33,000 tons of tobacco each year. Key production areas include Santiago, Valverde, and Monte Cristi.
June 2025: Global cigar sales dropped 7% in 2024, outside China
In 2024, traditional cigar sales volume, outside China, dropped -6.9% to 6.47 billion sticks while the cigar sales revenue declined -0.2% to $17.9 billion. Traditional cigars retailed at $2.77 per piece on average, up +7.2% versus 2023. USA remains as the largest traditional cigar market with 4.81 billion unit sales and $10.64 billion retail turnover (down -3.4% year-on-year-basis). Cuba is the second largest market with 310 million unit sales and $1.34 billion retail turnover. Spain follows Cuba with 280 million unit sales as the world’s third largest traditional cigar market. Seven countries and regions, with over 100 million unit sales volume, accounted for 92.1% of global sales in 2024.
May 2025: Dominican cigar exports reach US$1.34 billion
The Dominican Republic exported US$1.34 billion of cigars in 2024 to 148 countries. The United States is the primary market, accounting for over 74% of exports and generating nearly US$1 billion in revenue. Other key destinations include China, Germany, and Belgium. Dominican premium cigars – both handmade and machine-made – are especially in high demand with the growing diversification of markets and South Africa, Australia, New Zealand, and Poland are emerging as the new markets. Tobacco sector also plays a vital role in employment in the Dominican Republic, supporting more than 40,000 direct and 110,000 total jobs within the free trade zones.
February 2025: Cigars grossed £323 million in annual sales in the UK in 2024
The UK cigar market grew by +9.9% in 2024 to reach £323 million in annual sales in 2024. The cigar category is split into four segments: cigarillos, mini cigars, small cigars and medium & large cigars. Cigarillos are the fastest growing segment within cigars and now account for 56% of all cigars sold. In 2024, cigarillos grossed £144 million in annual sales, up from virtually zero before the Covid-19 pandemic. More recently, Scandinavian Tobacco Group (STG) extended its Signature cigarillos range, worth £6 million in annual sales, with the introduction of Signature Action Mix cigarillos that contain Berry and Mint flavour capsules. The 10-packs Signature Action Mix retail at £5.85. STG states that the sales of Signature Action family is growing by over 50% year-on-year basis in the UK.
In the mini cigars segment, STG’s Signature Blue brand emerged as the best-selling “traditional” cigar. The medium and large cigar segments are also growing, albeit at a modest rate. Altough price is an important factor also in the cigar market, cigar smokers have more tendecy (vis-a-vis cigarette smokers) to trade-up to more premium (larger format) cigars. STG’s Henri Wintermans Half Corona brand remains to be by far the UK’s best-selling medium/large cigar and a popular birthday gift for men.
February 2025: Habanos reports record sales
Cuba’s top cigar maker, Habanos reported a record revenue of $827 million and +16% year-on-year revevenue increase in 2024, driven by the growth in China and other Asian markets. Luxurious smokes produced by Habanos benefited from a growing class of wealthy smokers in Asia – the region which now accounts for nearly one-quarter of the company’s global sales. China remains as the top-market for Habanos in terms of sales, followed by Spain, Switzerland, Britain and Germany.
Soaring sales in 2024 came even as Cuban growers struggle to recover from the constant power outages as well as the Hurricane Rafael in November 2024 and Hurricane Ian in September 2022. The hurricanes ravaged the western tobacco growing provinces of Artemisa and Pinar del Rio, damaging infrastructure and crops. Nevertheless, Habanos states that the production of high-quality tobacco was guaranteed for its cigar-making despite the recent natural disasters. Cuba’s luxuriously smooth tobacco has long topped the cigar industry, with aficionados touting the Caribbean Island’s unique variety of tobacco, rich soils, and ideal climate – as well as Habanos’ insistence on rolling its cigars by hand.
Nevertheless, Habanos recently started to produce machine-made cigars at the Internacional Cubana de Tabacos (ICT) factory in Havana. These small, easy-to-smoke and more affordable cigars brought in $38 million revenue in 2024. With 400 employees, ICT is the only industrial cigar factory in Cuba, producing around 800,000 units per day. The factory operates 64 machines capable of producing up to 42 cigars per minute under the Cohiba, Partagás, Montecristo, and Romeo y Julieta brands. To cope with the rising demand, ICT operates 24×7 in three shifts.
Cuba’s cigar business, together with rum exports, is among the country’s thriving export industries and critically important for raising foreign currency necessary to buy critical import goods. Habanos S.A. is owned 50% by the Cuban government and 50% by Tabacalera, a consortium of Asian investors1.
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