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The US dominates Dominican cigar exports, taking 88% followed by China, Germany, Belgium, and the EU. Photo credit: Pxhere.
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Since 2001, Dominican supply has fallen 16.7% annually, while demand has risen 7% yearly since 2007.
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Cigars make up 10% of national exports, second only to gold. Photo credit: So Scenic Photography, Pexels.
Total DR 2024 exports pass US$1.34 billion
The Dominican Republic announced that annual cigar exports surpassed US$1.34 billion in 2024, according to Iván Hernández Guzmán, director of the Dominican Tobacco Institute (In-tabaco). Cigars account for 10% of all the country’s exports, making them one of its most vital exports, second only to gold.
Hernández Guzmán, speaking during the Dominican Cigar Expo 2025, said that more than 181 million hand-rolled cigars and over 8.2 billion machine-made cigars were produced in 2024. The country is the world’s leading exporter of premium cigars. Exports reached more than 145 countries, underscoring the nation’s expansive international footprint in premium cigar production.
Hernández Guzmán emphasized that the tobacco industry has a significant impact on the Dominican Republic’s economy. It is the largest employer in free trade zones, creating more than 40,000 jobs, accounting for 20% of total employment in the sector, and creating more than 110,000 jobs overall.
The United States continues to be the dominant global cigar market, accounting for over 88% of the Dominican Republic’s cigar exports (82% of US cigar imports) and generating nearly US$1 billion in revenue. Other significant Dominican cigar destinations include China, Germany, and Belgium. The European Union accounts for 10% of total Dominican cigar exports.
Hernández Guzmán said he expects the Dominican market to continue to flourish. He emphasized the industry’s commitment to quality, noting that both handmade and machine-made premium cigars adhere to strict quality standards. He also noted the diversification of markets, with emerging demand from countries such as South Africa, Australia, New Zealand, and Poland.
Additionally, Hernández Guzmán praised Dominican tobacco as a “true national brand,” citing ongoing efforts by the government and private sector to promote sustainable production and attract foreign investment through partnerships and trade agreements like the Dominican Republic–Central America Free Trade Agreement (DR-CAFTA).
One factor that may influence the Dominican cigar market moving forward is that the current tariffs on Dominican cigar imports into the United States include a 10% tariff rate. Scandinavian Tobacco Group (STG), the world’s largest cigar company, raised its US cigar prices by 5%. The increase affects wholesale orders placed by retailers across its portfolio of brands. STG markets more than two dozen cigar lines in the US through three divisions:
- General Cigar Company, which distributes brands such as CAO, Don Tomas, Macanudo, Odyssey, and the non-Cuban versions of Cohiba, Hoyo de Monterrey, Punch, and Sancho Panza.
- Forged Cigar Company, offering Alec Bradley, Chillin’ Moose, Diesel, Los Statos, Room101, along with non-Cuban versions of Bolivar, El Rey del Mundo, La Gloria Cubana, and Partagas.
- Meier & Dutch, which supplies 5 Vegas, Ave Maria, Man O’War, Nica Libre, and Buffalo Trace cigars.
The price adjustment is structured as an import fee, with STG maintaining the ability to modify the rate in response to changes in tariffs. In April 2025, the US imposed a 10% tariff on cigar imports from the Dominican Republic, Honduras, and Nicaragua—down from an initially proposed 19%. STG manufactures its products in all three of those countries.
STG’s primary competitor in the US, Altadis USA, matched the 5% increase, applying it as a surcharge on invoices rather than altering the listed prices, mirroring STG’s approach, according to media reports. Altadis USA distributes brands including Aging Room and the non-Cuban versions of H. Upmann, Montecristo, and Romeo y Julieta. Its cigars are made in the Dominican Republic and Honduras, with additional production handled through a contract with A.J. Fernandez Cigars in Nicaragua.
Several smaller cigar producers—such as Artesano Del Tobacco (Viva La Vida), CLE Cigar, Foun-dation Cigar, JRE Tobacco, Oscar Valladares Tobacco, RoMa Craft Tobac, Southern Draw Cigars, and Villiger Cigars North America—also raised their US wholesale prices by US$0.15 to US$0.50 per cigar to help absorb the cost pressures from the new tariffs.
Dominican cigar exports are projected to reach just over 12.5 million kilograms by 2026, a decrease of 2.8% compared to 2021, according to ReportLinker. Since 2001, Dominican supply has decreased by 16.7% per year on average. However, since 2007, Dominican demand has grown 7% per year on average.