2024 Cigar Insider Retailer Survey: Many U.S. Tobacconists Report Higher Sales Than Last Year
Cigar retailers had a lot to say in our yearly survey, and they had strong opinions on everything from the price of cigars to the overall health of the cigar industry. Much of the was positive. After a few booming years in the world of cigars, many retailers say that sales are still up. Our latest Cigar Insider survey shows that a good number of cigar shops are selling more cigars this year than last year. We polled 66 U.S. retailers representing a total of 394 cigar shops and according to 48.5 percent of them, sales are up this year over 2023. Only 33.3 percent of retailers reported that sales were flat this year, and a mere 18.2 percent reported a decline.
2024 Cigar Sales Compared To 2023
| Status | Percent |
|---|---|
| Sales are up | 48.5 |
| Sales are down | 18.2 |
| Sales are flat | 33.3 |
Source: Cigar Insider
Though the numbers are positive, it’s a notable change from last year, when 69.1 percent of retailers reported gains over 2022. This could indicate that the boom times sparked from the pandemic might be leveling off. The cigar boom started in the latter half of 2020 after lockdowns resulted in increased cigar consumption across the United States.
When the pandemic hit in 2020, much of the cigar industry predicted a sharp decline in business. At first, factories shut down and distribution pipelines slowed to a near halt. But then, after factories re-opened and logistical channels started to adapt, the exact opposite happened. Smokers working from home during lockdown began smoking more. Much more. From there, the numbers kept steadily rising, a trend that could be seen while analyzing the numbers of imported handmade cigars (virtually all of the handmade cigars smoked in the United States are made outside of the United States.) In 2021, the United States imported 456 million handmade cigars, a 25.3 percent increase over 2020 and the first time import numbers hit 400 million since the 1990s. It was official—we were in a cigar boom. The numbers were even higher in 2022: 464 million. For 2023, imports were slightly up to 467 million (essentially flat). While cigar imports may indeed be leveling, business is still strong, as the 400 million mark seems to be a sweet spot of sorts, indicating a robust industry.
Has The Cigar Boom Leveled?
| Status | Percent |
|---|---|
| Yes | 60.0 |
| No | 20.0 |
| Unsure | 20.0 |
Source: Cigar Insider
Prices And A Post-Boom Economy
Despite import numbers over 400 million, it’s unclear whether or not the industry is still in a cigar boom. The totals for 2024—tallied by the Cigar Association of America—won’t come in until the spring, but the perception among many retailers is that the boom has leveled. This year, an overwhelming 60 percent of polled tobacconists believe the boom is leveling off, while 20 percent say the boom is still going strong and another 20 percent aren’t sure.
“It's still solid,” says Craig Cass of Tinder Box in Charlotte, North Carolina. “But it’s not the easy ‘blow-it-out’ volume of the last couple of years. Business is still spectacular.”
In Tulsa, Oklahoma, Broken Arrow Tobacco Outlet sees a bit of a slowdown, but is still optimistic. When asked if the boom is leveling, manager Trevor Tayler responds: “In some ways, but not completely. Some tapering off of volume is to be expected considering the influx of Covid monies over the last handful of years. However, I believe that the industry has done a good job of both attracting new customers and maintaining longtime customers during that period. Maybe a little cool down before the next boom.”
Mike Lohsl, owner of Chesapeake Pipe & Cigar in Annapolis, Maryland, isn’t as positive. “I think the multiple price increases across the cigar market over the last three years are pricing many consumers out of the market,” he says. “Import numbers have softened in the beginning of 2024.”
Have You Had To Raise Prices This Year At Your Store/Stores?
| Status | Percent |
|---|---|
| Yes | 90.6 |
| No | 9.4 |
Source: Cigar Insider
Unsurprisingly, prices weigh heavily on the minds of U.S. retailers, and most of them have observed that prices are going up. An overwhelming 97 percent of the retailers we polled said they’ve seen an increase in manufacturers’ suggested retail prices this year. Naturally, almost 91 percent of retailers also say they had to raise prices this year as a result.
“Prices have definitely risen, that’s a fact,” says Miguel Cuenca of Cuenca Cigars in Hollywood, Florida. “It doesn’t help, but I recognize that the cost of living is higher now and everyone needs to pitch in. We’ve experienced a significant increase in rent, insurance, licensing and employee salaries. There’s no way to retain your valuable employees without offering higher pay.”
At Smoky’s Tobacco and Cigars in Knoxville, Tennessee, Dave Watson is feeling price hikes as well, saying that he’s seen multiple increases from the same companies. “It’s like they want to see how far they can go,” he says. “In the 14 years that I’ve been in business, prices on cigars have doubled.”
Roy Brown of Iron Horse Cigar Depot in Hudson, New York puts it plainly: “When manufacturers raise our prices, we them on to the consumer.”
Logistics, Inflation And The Internet
With Covid lockdowns (hopefully) a thing of the past, supply chain issues have certainly improved, but according to many retailers, it remains a problem, as 43.5 percent of retailers report that they still receive product later than they should.
“A lot have caught back up on production, so we’re back to seeing fairly regular shipments,” says Billy O’Hara of Jack Schwartz Importer, one of Chicago’s most well-known tobacconists. “That being said, there are still a few manufacturers where we might have to wait for a few weeks.”
“It’s getting better,” says an anonymous representative of Happy Harry’s in Fargo North Dakota, a shop that specializes in wine, spirits and cigars. “There are still a few of the smaller cigar companies that are a little slower.”
If waiting a little longer for cigars was a minor issue, the economy was a major, if not the primary concern among most business owners, and inflation continues to be a top area of contention. In the cigar industry, more than half (65.1 percent) of retailers reported that inflation changed the buying habits of their customers.
“Many brands formerly under $10 are now over $12,” says Gary Pesh. He owns Old Virginia Tobacco Co. which encomes six stores around the Old Dominion. “Consumers are finding cigars that fit their budget under $10.”
Steve Castro, owner of 12 Davidus Cigars locations across Maryland, echoes this sentiment: “The box buyer is buying sticks and the stick buyer is buying fewer sticks or less expensive sticks.”
Has Inflation Changed Buying Habits?
| Status | Percent |
|---|---|
| Changed habits | 65.1 |
| Has not changed habits | 19.0 |
| Has somewhat changed habits | 15.9 |
Source: Cigar Insider
Only 19 percent of retailers say that inflation made no difference, and 16 percent were unsure. Shops like Nolan’s Cigar Bar in Traverse City, Michigan, aren’t seeing inflation affecting all its customers. “I honestly can’t say it has for everyone,” explains Dan McGovern of Nolan’s. “I’ve got customers buying more than they did in 2023, I’ve got customers buying less . . . the options for the budget smoker have dwindled a little. Form my end, it just makes it more difficult to find a good, inexpensive, sub-$10 cigar, but the non-budget folk don’t even bat an eyelash at a cigar climbing an extra dollar. They know what they want and they’ll pay for it.”
Most of the retailers we polled are exclusive brick-and-mortar shops with no Internet business. Only 37 percent of stores said they sold cigars online, and the majority—63 percent—only sell cigars in person. These percentages are nearly identical to last year’s poll.
You may not think twice about a shop having a cigar lounge, but for shop owners, they’re invaluable. Seeing how cigars can usually be purchased cheaper online, a lounge creates an incentive for people to come to their local shop, buy a cigar and relax in the social setting. Factors like state-wide smoking bans and, in some cases, the onset of colder weather, make lounges a necessity. And cigar lounges are common: 79 percent of the retailers we surveyed have a lounge where customers can light up.
The Cigar Association Trade Show
The PCA trade show (formerly called the IPR and the RTDA), has historically been held in the summer, and retailers have complained about the timing for decades. The PCA listened to the , and this year, the annual trade show happened in the spring. Now that so many retailers got their wish, our survey reflects that most think it’s a better time of year for the show.
“We are located in the Northeast, and it’s an easier time of year for us to attend,” says Gary Kolesaire, owner of the upscale Tobacco Shop of Ridgewood in New Jersey. “It allows us to view new products that will be available throughout the year. This makes business planning easier.”
For McGovern, getting new product by the summer makes all the difference, as the cold winters in Traverse City mean that his business is seasonal. “We’re a heavy summer tourist area,” he says. “And having product available in June, July and August is massive rather than waiting until September.”
But Brett J. Fry, who owns Tobaccology in Manassas, Virginia, doesn’t agree: “Being up North, we don’t have the discretionary income coming off slow winters.”
What’s On Their Minds?
As the news from the retail front is positive overall, there are still some issues troubling cigar shop owners, and they’re nothing new. Taxes and regulation are certainly looming and recurring issues, but this year, many concerns had to do with the Internet, where consumers can buy cigars without having to pay local tobacco taxes. Retailers see this as a debilitating disadvantage and would like to see a more even playing field.
According to Richard McLennan of Huckleberry’s Pen in Rolling Hills Estates, California: “The big Internet and mail-order companies are slowly squeezing out the small brick-and-mortar stores.” Outside of Sacramento in Roseville, a retailer at Perfecto Lounge who identifies himself simply as “Rev” agrees. “Either no Internet sales or the government must collect tobacco tax for the state the product is delivered to.”
When asked which issues are most pressing, some retailers went back to price. They think that the price increases have gone too far and retailers like Jeff MacDonald of JM Cigars in Exton, Pennsylvania, put the blame squarely on manufacturers.
“Many manufacturers are getting full of themselves, charging two- to 10-times the price of their regular line for some special, limited-edition cigar,” he says.
Lohsl in Maryland couldn’t agree more. Like other retailers, he’s not happy about the increase in prices and believes that greed is the driving factor behind the current sticker shock. “On Wall Street, there’s a saying that bulls and bears make money and pigs get slaughtered,” he says. “I see many manufacturers introducing cigars that are priced too high for many consumers. I don’t think manufacturers are listening to their core base and they’re pushing away many customers. Those prices might work in Manhattan, but not on Main Street, U.S.A.”
To see the Cigar Insider retailer survey on the hottest and best-selling cigar brands, click here.
To see the Cigar Insider retailer survey on best-selling sizes, click here.
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Miguel Cuenca was incorrectly named as being associated with The Cigar District in Bentonville, Arkansas. He is actually with Cuenca Cigars, in Hollywood, Florida.
