Part 1: The Premium Cigar Market Is Changing

One of the advantages of owning a cigar shop is getting to see the industry from a different perspective. While most smokers focus on the cigar in their hand, I spend a lot of time watching production, inventory, and market trends.

The latest import numbers from the Cigar Association of America caught my attention.

During the first quarter of 2026, the United States imported 90.9 million premium handmade cigars. That's down about 3% from the same period last year—not enough to suggest a weakening market, but enough to show the explosive post-COVID growth has leveled off.

The bigger story is where those cigars are coming from.

For the first time, Honduras has overtaken the Dominican Republic as the second-largest supplier of premium cigars to the United States.

Before everyone starts predicting the end of Dominican cigars, it's important to understand why.

Nicaragua is still the heavyweight, producing nearly two-thirds of all premium cigars imported into the U.S.

Honduras has quietly become home to some of the best factories and blenders in the world, while the Dominican Republic saw temporary production interruptions that shifted some manufacturing elsewhere.

The bigger takeaway is that the premium cigar market continues to evolve.

The U.S. has now imported more than 400 million premium cigars annually for five straight years. The pandemic boom may be over, but demand has settled at a much higher level than it was before 2020.

So what does all of this actually mean for the cigars you smoke?

That's where it gets really interesting.

Next week, I'll explain why I think many cigar smokers are paying attention to the wrong thing. Country of origin still matters—but it's no longer the whole story.

Cheers,
Brandon