Cuban cigars have become an increasingly important source of revenue for Cuba, with Habanos’ sales rising to $827 million by 2024 after steep price increases. The industry was also transformed by businessman Chen Zhi, whose investment in Habanos helped expand its luxury positioning, particularly among wealthy Chinese buyers. However, Chen’s subsequent sanctions, arrest and liquidation proceedings have put his stake in Habanos at risk.
Meanwhile, Cuba’s aging production infrastructure, supply problems and continued price hikes are pushing longtime customers toward better-funded cigar producers in Nicaragua, Honduras and elsewhere. The Financial Times argues that while Cuban cigars retain their global prestige, Habanos faces growing competition, declining accessibility and worsening production and distribution challenges.
