Cuban cigar exports, known as the island’s iconic export, witnessed a notable increase of 31 percent last year, reflecting the surge in global demand for luxury goods, according to statements from the country’s primary tobacco exporter released on Monday.
Jorge Perez Martell, the commercial vice president of Habanos S.A., announced the 31 percent increase in turnover for 2023 during the commencement of the capital’s annual cigar festival, citing a total turnover of $721 million.
Jose Maria Lopez Inchaurbe, the vice president in charge of development at Habanos S.A., attributed the substantial growth in demand to the resurgence of the luxury market post-pandemic, particularly in the consumption of premium cigars. He highlighted the development of high-end specialized products and the introduction of limited and exclusive editions as significant drivers behind this growth.
The boost in cigar sales is a positive development for the Cuban economy, which experienced a two percent contraction last year amidst its most severe crisis in three decades.
In terms of value, Inchaurbe noted that China retained its position as the largest global market for cigar exports, followed by Spain, Switzerland, Germany, and the United Kingdom. Europe emerged as the primary market, accounting for 56 percent of Cuban cigar exports.
Notably, Cuban cigars remain unavailable in North America, the world’s largest market for such products, due to the trade embargo imposed by the United States on the communist island since 1962.
Despite challenges such as the impact of a powerful hurricane on western Cuba, the traditional tobacco-producing region in 2022, the industry is showing signs of recovery, according to Luis Sanchez-Harguindey Pardo de Vera, the co-president of Habanos S.A.
Habanos S.A., a joint venture between the Cuban State and Tabacalera S.L.U headquartered in Spain, exclusively handles the export of “habanos” cigars. Tabacalera, previously owned by the British group Imperial Brands, has been under the ownership of a consortium of Asian investors known as the Allied Cigar Corporation since 2020.
Cuban tobacco, renowned for its quality, remains one of the island’s top export commodities, alongside nickel, seafood, vaccines, and medical services.
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