U.S. cigar sales have followed a century-long cycle of growth, decline, and renewal. After peaking at just over 8 billion units in the 1920s, sales fell steadily to about 5 billion by the late 1950s as cigarette use surged and consumer preferences shifted.
A brief recovery in the 1960s and early 1970s pushed volumes near 11 billion units, but the rebound was short-lived. Over the next two decades, cigar sales collapsed to roughly 3 billion units by the early 1990s, reflecting a weakened industry and declining consumer interest.
A turning point came in 1996, when cigars experienced a “renaissance” fueled by renewed cultural appeal and growth in the premium segment. By 2012, annual volumes reached nearly 14 billion units, before easing 12% through 2015 amid lingering post-recession headwinds.
Between 2016 and 2021, the market showed steady resilience, expanding 9% despite regulatory challenges. The pandemic years brought a sharp spike in demand—by 2021, sales hit a record 15.25 billion units, including 456 million premium cigar imports, a 25% year-over-year increase.
The market has since corrected. Total cigar sales fell 14% in 2022 and another 10% in 2023, to 11.8 billion units, driven mainly by declines in popular-priced cigars. The premium segment proved more stable, down 8% in 2023 but showing a 1% rebound in early 2024, signaling a return to equilibrium. Meanwhile, domestic production has continued to contract—dropping from 3.8 billion units in 2022 to an estimated 2.7 billion in 2024, a 29% decline over two years.