France, among the top 5 buyers of Cuban cigars

France is a significant customer for Cuba. In 2021 it appeared among the top 5 buyers of cigars in the world. A closer look.

Cuban cigar exports up 15 %

Corporacion Habanos S. A has just published its figures for 2021. Its turnover jumped by 15 %, reaching 568 million dollars. Despite the Covid-19 crisis, the Cuban cigar market is in good health.

In terms of sales volumes, the top 5 is fairly surprising, since first place goes to Spain, followed closely by China, Germany, France and Switzerland. Europe is the main buyer, accounting for close to 60 % of sales volumes. Asia-Pacific comes next, ahead of the Americas with 16 % against 14 %, despite the United States embargo. Africa and the Middle East account for 11 % of Habanos turnover.

Output held up through the crisis

Despite the health crisis, Habanos managed to keep its customers and, above all, its production rate, so as to meet demand. Unable to travel, most cigar smokers bought directly online or from their usual distributors. Some even invested in humidors in order to build up a small personal stock, just in case.

In Hong Kong, cigar prices rose during May. It is one of the reference markets used to set worldwide prices. Habanos S. A. has therefore announced a coming price increase, in order to align with the levels applied in Hong Kong.

Some formats will then be sold in France at twice the price, the Behike among them. On average, the increase is expected to range between 5 and 25 % depending on the cigar, from 1 July. The distributor remains confident, however, saying it trusts the quality of its products. According to its management, customers will stay loyal despite paying a few euros more.