The sugar-based economy of the islands faced stiff competition from Spain’s Caribbean colonies. Low sugar prices in the 19th century caused severe recessions on the islands. A new cash crop, cochineal (cochinilla), came into cultivation during this time, reinvigorating the islands’ economy. During this time the Canarian-American trade was developed, in which Canarian products such as cochineal, sugarcane and rum were sold in American ports such as Veracruz, Campeche, La Guaira and Havana, among others.

By the end of the 18th century, Canary Islanders had already emigrated to Spanish American territories, such as Havana, Veracruz, and Santo Domingo, San Antonio, Texas and St. Bernard Parish, Louisiana. These economic difficulties spurred mass emigration during the 19th and first half of the 20th century, primarily to the Americas. Between 1840 and 1890 as many as 40,000 Canary Islanders emigrated to Venezuela. Also, thousands of Canarians moved to Puerto Rico where the Spanish monarchy felt that Canarians would adapt to island life better than other immigrants from the mainland of Spain. Deeply entrenched traditions, such as the Mascaras Festival in the town of Hatillo, Puerto Rico, are an example of Canarian culture still preserved in Puerto Rico. Similarly, many thousands of Canarians emigrated to the shores of Cuba. During the Spanish–American War of 1898, the Spanish fortified the islands against a possible American attack, but no such event took place.