28 TOBACCO BUSINESS | MAY / JUNE | 22 Since 2020, it’s been no secret that there’s big business when it comes to the cigar industry. One of the unexpected impacts of the COVID-19 pandemic has been the new cigar boom that has sent the profits of many companies in the space soaring. Data released by the Cigar Association of America (CAA) show that cigars are a hot commodity in the U.S., with a record 456 million handmade cigars being imported into the country in 2021. While these numbers are estimates, they do correlate with the increased consumption of premium cigars reported by many companies over the past two years. The latest numbers show a 25.3 percent increase in cigar imports between 2020 and 2021. Nicaragua led the way in terms of cigar imports, having shipped 240.9 million handmade cigars in 2021. This was a 29.4 percent increase compared to the 2020 numbers in the same report. The Dominican Republic shipped 129.5 million cigars (a 22.5 percent increase) while Honduras shipped 84.2 million (an 18.3 percent increase). CAA’s numbers are based on import data provided by the U.S. Customs Service, U.S. Census Bureau and various cigar manufacturers. The CAA’s report does hint at an end to the cigar boom. The import of cigars was down by 23.8 percent in December 2021 compared to those from December of the previous year. TB S STARTUP : MARKETWATCH A RECORD YEAR FOR CIGARS Source: Cigar Association of America (CAA). The graph shows CAA’s estimated premium cigars imported for U.S. consumption with some gaps in the early years. From 2010-2021, the 10-year compounded annual growth rate has been 5 percent. 1977 1981 1985 1989 1990 1991 1992 1993 1994 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 500 450 400 350 300 250 200 150 100 50 0 78 103 103 75 81 73 89 84 100 136 243 418 335 248 249 262 275 272 286 298 269 271 272 287 259 279 308 314 310 316 322 330 362 338 361 456 $350,000 The amount raised by the Association of Dominican Cigar Manufacturers (Procigar) at this year’s Gala Dinner Party during Procigar 2022 was $350,000. This special event held on the last night of Procigar 2022 featured a traditional auction of unique items. Profits from the auction benefited Voluntariado Jesús con los Niños, a nonprofit organization for ill children; Sociedad San Vicente de Paúl, a senior retirement home for low-income elders; and Procigar’s charitable initiative “A Home for My Family,” a housing program for disadvantaged yet deserving employees of the members’ companies. For additional information about Procigar, visit procigar.org. ESTIMATED PREMIUM CIGARS IMPORTED IN MILLIONS Michael Herklots (left) and Manuel Quesada (right) served as the hosts of the 2022 Procigar Gala Dinner Party auction.
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