NBA superstar Steph Curry has been featured on the cover of countless magazines, but he surprised many of his fans when he appeared on the cover of Cigar Aficionado in early 2024. For the four-time NBA champion and current holder of the three-point shooting record, enjoying a good cigar after major accomplishments or during times of relaxed introspection has become a celebratory tradition. Curry on the cover of Cigar Aficionado is just one sign of the boom that the cigar industry has been enjoying since before the COVID-19 pandemic; here are five other signs underscoring this market trend:
1- Rising Annual Cigar Sales
The most recent cigar survey conducted by Cigar Aficionado polled more than 290 shops across the United States about their sales. Nearly 70% of the shops reported that their sales had increased from 2022 to 2023. This marks the fifth year for this trend, which started during the 2019 holiday season, continued to rise through the COVID-19 pandemic, and prevails today.
2- A Wider Range of Pricing Patterns
Shop owners are split in their opinions of whether cigar lovers have become more finicky about pricing, and the split is almost 50/50. At shops located in upscale districts, customers are accepting higher prices for many imported cigars. At other shops, customers are stretching their funds with purchases under $10 because 93% of owners have raised their prices. This is good news for the industry because this type of trend often results in price competition that ultimately benefits smokers. With shops catering to both high-rollers and budget-conscious customers, competition on pricing is likely to rise. While this could benefit consumers in the short term, it would force shop owners to think more strategically about their business models instead of engaging in a race to the bottom.
3- A Moderate Impact From Inflation
Many Americans have cut down on their discretionary spending because of rising consumer inflation, but this microeconomic trend has not impacted the cigar industry too much. Approximately half of cigar shop owners have seen their customers reduce their spending, but not too drastically. Less than 35% of shopkeepers believe that their customers have not changed their buying patterns at all, and 18% are seeing customers interested in product bundles, discounts, and new imports.
4- Customers Still Value The Cigar Shop Experience
Despite the rise of e-commerce in the cigar industry, the in-store cigar shop experience remains important to customers. Other segments of the retail economy have experienced a sharp reduction in brick-and-mortar activity, but that is not the case with cigar shops. The atmosphere, the ability to touch and inspect cigars, and the recommendations from knowledgeable staff are factors that can’t be easily replicated online, which explains why only 37% of shops are selling online. This highlights the importance of brick-and-mortar cigar shops in offering a welcoming and engaging environment for their customers.
5- The Rise of Cigar Lounges
If we look back at how the cigar industry operated more than a decade ago, only about half of American shops operated lounges despite being located in legal jurisdictions. These days, nearly 80% of shops in states where they can operate lounges are doing so, and many of them believe that this is giving them a competitive edge.
