For the first time in legendary Cuban cigar maker Habanos S.A.'s history, China became the number one national market by sales volume in 2020.
It was followed by Spain, France, Germany and Switzerland.
According to the company, the year-on-year decline was primarily due to lower sales in countries that profit from tourism, as well as a loss of duty-free and travel retail business. Habanos expressed optimism about the travel retail market's recovery in 2021.
China surpassed Spain, Cuba's previous No. 1, and one of the long-standing, traditional markets for major Cuban cigar sales.
Sales to China, which include not only mainland China but also Hong Kong and Macau, have been extremely strong over the last six years, increasing by more than 50%. According to Habanos, sales to China increased by 5% last year alone.
Cuban officials made note of celebratory cigars designed especially for the Chinese market, such as the Hoyo de Monterrey Primaveras Year of the Ox. They hinted at a new one for the next New Year.
The press conference, which was held as part of the all-virtual Habanos World Days event, covered Habanos' financial results. China's good news was offset by the predicted bad news about 2020 in general.
Habanos posted a 4% decrease in revenue to $507 million. The fall was, of course, caused by the coronavirus pandemic.
"2020 has been a challenging year, not just for our business for humanity," Leopoldo Cintra González, the commercial vice president for Habanos, said.
Cuba is one of the countries hardest struck by the virus, and the disease has forced the country to close its borders to tourists.
The impact on Habanos sales in its home country was significant. With Cuba excluded, Habanos estimated that the company's losses would have been cut in half, to just 2%.
While China ranks No. 1 for Cuban cigars, Europe is still the largest as a region. In 2020, Europe accounted for 60% of Habanos' sales.
