New pressures on a tense industry
Still, tobacco remains Cuba’s largest export, with record revenues from tobacco sales reaching about $827 million in 2024, the government reported.
Lloyd-Smith explained that demand is related to prestige. All over the world Habano is considered a symbol of luxury.
“When most people think of cigars, they automatically think of Cuban cigars,” he said.
The reputation for exclusivity was partially reinforced by the fact that Cuban cigars are illegal in the United States due to a long-standing embargo.
The trade restrictions were primarily a response to the 1959 Cuban Revolution, which led to the establishment of a communist government on the island.
The new government quickly nationalized the island’s industry, incurring the wrath of U.S. authorities.
Traditional cigarette brands such as Monte Cristo and Romeo y Julieta were placed under state control and new products were introduced. Among them was Cohiba, the luxury cigar brand that was a favorite of the late Cuban revolutionary Fidel Castro.
But experts say the U.S. lockdown has worsened the woes of the cigar industry, which has faced multiple supply shocks in recent years.
In September 2022, Hurricane Ian hit Pinar del Rio, damaging 90 percent of the state’s tobacco drying barns that dry leaves.
Just 5,150 hectares (13,725 acres) of tobacco were planted that season, the lowest level since records began. Since then, tobacco growth has remained sluggish.
Just last month, the Cuban government announced that it had missed its 2025-2026 growing season goal, which it set for 12,152 hectares (30,028 acres). This target had already been revised downward in September due to heavy rains.
These crises have reduced the supply of cigars both domestically and internationally.
The island exported 50 million cigars in 2024, just over half of the 93.9 million cigars shipped overseas in 2018, according to state-run tobacco company Tabacuba.
Tabacuba does not release data for the past year, but industry sources say exports have slowed further in recent months.
Lloyd-Smith said some cigar retailers haven’t received shipments of Habanos since last year, while others are receiving smaller deliveries less frequently.
Chetan Seth, president of Singari, India’s only importer of Cuban cigars, told Al Jazeera: “The delivery of cigars is delayed due to international logistics.”
However, he added, “We do have some in stock.”
