U.S. domestic cigar production declined again in 2025, continuing a long-term shift away from U.S.-based manufacturing. Based on taxable removals—cigars produced domestically and released into the market after all applicable federal taxes are paid—both large and little cigars fell compared to 2024. In practical terms, taxable removals represent cigars exiting factories and entering the wholesale market.
Total large cigar removals dropped from approximately 2.38 billion units in 2024 to 2.03 billion in 2025, a decline of about 14% year over year. This continues the steady erosion of domestic large cigar production, particularly in the mass-market segment where production has increasingly moved offshore.
Little cigars saw an even sharper decline. Removals fell from roughly 45.5 million units in 2024 to 31.4 million in 2025, a drop of about 31%, underscoring the volatility and structural weakness of that category.
Combined, total domestic production of large and little cigars declined from approximately 2.42 billion units in 2024 to 2.07 billion in 2025, a decrease of roughly 15%.
This is not a short-term fluctuation—it reflects a broader structural shift. Over time, domestic manufacturing has steadily lost share as imports have expanded, driven by cost advantages, supply chain efficiencies, and changing consumer demand.
The year-over-year decline in 2025 reflects mounting economic pressure—from tariffs and rising input and labor costs to shifting consumer demand.