The Premium Cigar Association’s latest member survey offers a snapshot of the opportunities and challenges facing the premium cigar industry in early 2026. Retailers and manufacturers were asked about sales performance, advocacy participation, operational concerns, insurance coverage, regulatory issues, and educational priorities. The results reflect cautious optimism in some areas while also revealing growing concern around taxes, tariffs, insurance access, advocacy engagement, and long-term business sustainability.
Retailer Survey Results
Most Retailers Reported Stable or Improved Holiday Sales
Retailers were asked to compare their 2025 holiday sales season to 2024.
- 52.2% said business was better
- 30.4% said sales were about the same
- 17.4% said sales were worse
Retailers Want More Tax and Advocacy Resources
When asked what resources would help them better navigate tax-related issues, retailers overwhelmingly pointed toward educational and advocacy-focused tools.
Top responses included:
- State-specific tax summaries (58.7%)
- Advocacy toolkits for retailers (54.3%)
- Talking points for lawmakers (50%)
- Webinars or trainings (26.1%)
- One-on-one guidance (19.6%)
Retailers Want Education on Marketing, Tariffs, Operations, and Competition
Retailers were also asked what topics they would like explored through future educational seminars or webinars.
Common themes included:
- Marketing and social media strategy
- Competing against online retailers
- Tariffs and pricing pressures
- State-specific tobacco tax and licensing rules
- Inventory management
- Customer acquisition and retention
- Ventilation systems and lounge operations
- Credit card processing and insurance
- Artificial intelligence tools for retailers
- Advocacy and lobbying strategies
Insurance Availability Remains a Concern
Retailers reported using a wide range of insurance providers, though several respondents noted growing difficulty in securing or maintaining coverage.
While many retailers reported no issues with coverage, some respondents indicated:
- Policies were not renewed by carriers
- Tobacco businesses are increasingly viewed as “high risk”
- Coverage in coastal regions has become more difficult to secure
- Some retailers experienced lapses or were forced to move to surplus-line providers
Retailer Takeaways:
- Many retailers experienced either stability or growth during the most recent holiday season despite continued economic uncertainty and rising operational costs.
- The results show a strong desire for clearer information and more practical tools that can help retailers respond to legislative and tax-related challenges in their local markets.
- Many responses reflected concern over how retailers can continue attracting customers and growing their businesses in an increasingly regulated environment with limited advertising options.
- A number of respondents specifically mentioned concern about shrinking insurance options available to premium tobacco retailers.
Manufacturer Survey Results
Manufacturers Also Reported Mostly Stable or Improved Sales
Manufacturers were asked to compare their 2025 sales performance to 2024.
- 47.6% reported better sales
- 28.6% reported sales were about the same
- 23.8% reported worse sales
Climate Concerns Are Increasing for Tobacco Production
Manufacturers were asked about the climate’s impact on tobacco production.
- 47.6% said they were concerned
- 4.8% said they were very concerned
- 33.3% said they were not concerned
- 14.3% said climate conditions had not made a difference
Manufacturers Cite Bandwidth and Engagement Challenges in Advocacy
Manufacturers identified several barriers to advocacy participation.
Top responses included:
- Limited internal bandwidth (42.9%)
- Not sure how to engage effectively (28.6%)
- Unclear or late information (23.8%)
- Uncertainty about business impact (23.8%)
Most Manufacturers Continue Participating in California’s UTL Program
Manufacturers were also asked about California’s Unflavored Tobacco List (UTL) requirements.
- 47.6% said they have submitted UTL applications and currently have products approved for sale in California
- 14.3% said they are still evaluating participation in the California market
- 4.8% said they have exited or are in the process of exiting the California market due to UTL requirements
- 19% said they do not sell products in California
- 14.3% were unsure or said the question was not applicable to their role
Four Manufacturer Takeaways:
- Like retailers, most manufacturers reported either growth or stability heading into 2026.
- The results indicate that while concerns vary, many manufacturers are beginning to pay closer attention to how climate conditions may affect tobacco growing and long-term production.
- Additional written responses cited budget constraints and uncertainty from newer companies that are still learning how to participate effectively in advocacy efforts.
- The responses reflect the continuing impact California regulations are having on premium cigar manufacturers and market participation decisions.
Industry Themes Emerging From the Survey
Across both surveys, several common themes emerged:
- Taxes, tariffs, and regulation continue to create uncertainty
- Retailers want more practical business education and operational support
- Insurance access is becoming more difficult for some businesses
- Many companies are looking for clearer guidance on navigating complex state regulations
The survey results also suggest that while many businesses experienced stable or improved sales in 2025, concerns surrounding regulation, operational costs, and long-term sustainability remain top of mind for both retailers and manufacturers.