Nicaragua Dominates the U.S. Premium Cigar Market

The U.S. tobacco market, one of the largest in the world, imported 8.453 billion cigars (both hand-rolled and machine-made) last year. According to the 2024 Cigar Association of America (CAA) Report97.7% were large cigars, while the remaining 193 million units were small cigars.

Among large cigars, 430 million units (5.2%) were premium cigars, primarily sourced from Nicaragua and the Dominican Republic. This segment grew by 0.9% compared to 2023, with rising average prices—driven by a “consumer base showing sustained interest in higher-quality cigars.”

Key Exporters to the U.S.

  • Nicaragua leads with 253 million units (58.8% of premium imports), up 6.8 million (2.8%) from 2023. Average price: $1.30 per cigar.

  • Dominican Republic follows with 106 million units (24.6%), though volumes dipped by 1.9 million (1.8%)Note: Economic values are unreported; estimates are unit-based.

  • Honduras declined from 69.6 million to 67.3 million units, while Costa Rica rose from 1.7 million to 2.4 million.

  • Philippines surged to nearly 1 million units (from 500,000 in 2023).

  • Mexico, Panama, and Bahamas remain in the “thousands” category.

Notable Declines

  • Bahamas: Exports fell 44.4%.

  • Mexico: Exports dropped 38.9% (58,000 fewer cigars).

Market Insights

The data reflects the two highest HTS (Harmonized Tariff System) codes for U.S. cigar imports—representing the most valuable customs categories. The report notes:

“This signals both inflationary pressure and strategic repositioning, as the market adapts to new cost realities while prioritizing quality.”

Access the full report here: https://cigarsusa.org/

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