Industry News
Premium Cigar Market Splits: Davidoff Posts Sales Gains as U.S. Handmade Imports Cool
The premium cigar business is running at two speeds in 2026. While overall U.S. handmade cigar imports have softened this year, one of the industry's oldest names just reported another year of growth—a sign that the high end of the market is holding up even as the broader category cools.
Davidoff Reports 2025 Growth
Switzerland's Oettinger Davidoff, the family-owned company behind the Davidoff and Zino brands, said its 2025 turnover reached about 545.3 million Swiss francs—roughly $680 million—up 2.5 percent over the prior year, according to trade outlet Cigar Aficionado. The company produced more than 36 million cigars during the year.
Growth was led by its two core lines: the flagship Davidoff brand rose about 2.4 percent, while the smaller Zino brand jumped roughly 16 percent, the company reported. Oettinger Davidoff also pointed to expanded production capacity in the Dominican Republic and Honduras as it closed out its 150th-anniversary year. Cigar Journal described the result as the company finishing its anniversary "on a high note."
For a maker at the premium end of the market, a modest but positive year stands out—because the wider U.S. picture has been running the other direction. This shift is detailed in our report on how new 2026 releases hit shops during a busy summer for the industry.
The Broader Market is Softening
U.S. premium cigar imports have cooled in early 2026 after several boom years, with trade press reporting handmade shipments slipping compared with 2025 and Nicaragua remaining the leading country of origin. Analysts have tied the pullback to post-pandemic normalization, higher retail prices, and economic caution among buyers who stocked up heavily in prior years.
The takeaway isn't a collapse — it's a return to earth. Legacy houses with strong brand loyalty, like Davidoff, appear better positioned to hold sales than the market as a whole, while price-sensitive buyers trade down or simply buy less often.
This trend mirrors recent data showing that premium cigar imports slipped 5 percent as the market began to stabilize from its historic highs.
What it Means for Cigar Shoppers
For customers of a value-focused retailer, the split market is mostly good news:
- The premium tier is still innovating. Growth at houses like Davidoff funds new production and new blends, which keeps the top shelf fresh for enthusiasts who want a genuine handmade smoke.
- Value matters more in a cooling market. When overall demand softens, price becomes the deciding factor for many shoppers—an advantage for stores built around lower prices across everything from machine-made cigarillos to premium boxes.
- Selection is the hedge. A cooling handmade market doesn't touch the everyday cigarillo, filtered cigar, and pipe tobacco categories that make up most day-to-day purchases.
The Bottom Line
Davidoff's 2025 numbers show the premium cigar category isn't in trouble—it's maturing. The frenzied growth of the boom years is giving way to a steadier market where established brands grow slowly and value-driven buying does the rest. For shoppers, that means the premium shelf stays interesting while the everyday tiers, such as Factory Throwouts No. 49 Premium Cigars, stay affordable. Those looking for consistent value often turn to established names like Black and Mild Cigars or reliable Cheyenne Filtered Cigars to manage their monthly hobby spend.