Handmade Cigar Imports Surge in Third Quarter

The U.S. cigar market continues its record-breaking streak, with the third quarter of 2024 showing a 3.8% increase in handmade cigar imports compared to the same period last year. Despite expectations of a slowdown, demand remains robust, driven by strong performances from key exporters.

According to the latest report by the Cigar Association of America (CAA), over 314 million premium cigars were imported into the United States in Q3 2024, up from 303 million in 2023. For context, imports surpassing 300 million cigars were once considered a hallmark of a strong year, underscoring the ongoing growth of the industry.

Nicaragua continues to dominate the market, exporting 186.5 million cigars—an increase of 2.8%. The Dominican Republic followed, with shipments soaring 12.9% to 77.4 million cigars. Honduras, while still the third-largest exporter, saw a 7% decline, shipping 48.3 million cigars. Notably, Costa Rica recorded a dramatic rise, exporting 2 million cigars compared to just 811,000 in Q3 2023.

If this growth trajectory continues, 2024 could see total imports reach an estimated 480 million cigars, surpassing last year’s record of 467 million. This marks the fourth consecutive year of increasing imports since the industry’s significant expansion during the COVID-19 pandemic.

The CAA data highlights Nicaragua’s dominant position, accounting for nearly 59.3% of all U.S. imports. The Dominican Republic, though thriving, faces challenges in accurately reporting its figures, partly due to rising costs and discrepancies in classification. For instance, Dominican exports fluctuated significantly month-to-month, which is attributed more to accounting variations than production changes.

Honduras’ decline, meanwhile, reflects broader shifts in the market dynamics, even as other regions gain traction. As the U.S. premium cigar industry continues to thrive, the data signals that demand for quality cigars remains strong, with no signs of cooling off in sight.