China is now the biggest Habanos market

China is now the biggest Habanos market. And this time officially Habanos confirms. Unofficially China has been the biggest market for Cuban cigars for a longer period. Many of the cigars sold through La Casa del Habano shops in Europe and Asia end up in China, and that has been the case for years. But in 2020, Infifon Hong Kong Limited, the official Habanos distributor in China was the supplier with the biggest single market in its portfolio. Before #2 Spain, France, Germany, and Switzerland. Switzerland ranks so high because of the many online retailers shipping worldwide.

When it comes to continents, Europe is the biggest market with a 60% market share. The Asia Pacific region is good for a little over 16%. The Americas count for almost 14% of Habanos turnover with Africa and the Middle East good for the final 10%. The total revenue was $507 Million. It’s the fourth time in a row that the revenue is more than half a billion, even though the revenue dropped by 4.5%.

Reduction

The reduction in revenue is caused by the Covid-19 pandemic. The duty-free and travel market is an important revenue stream for Habanos and that market came to a complete stop. Tourism into Cuba also came to a stop, causing the local sales to drop considerably.

“2020 has been a year of challenges, not only for our business, but for all mankind, a year in which the capacity for adaptation, resistance and proactivity has made the difference,” say Leopoldo Cintra González, commercial vice-president, and José María López Inchaurbe, VP of development,” in a press release. “And at Habanos, S.A. we have done just that, we have adapted to the circumstances and global context, and above all we have been, together with our exclusive Distributors, proactive in activating all the necessary mechanisms to achieve our goals.”