Cigars, cheroots, cigarillos and cigarettes market in Portugal

Earlier Report Observations

Following the market liberalization for private manufacturers in 2018, which increased competition, Portuguese production of cigars, cheroots, cigarillos and cigarettes experienced a slight dip in 2019 to $656.9 million. This coincided with international safety concerns over counterfeit e-liquids that spurred discussions on flavor bans. However, substantial industry investment in heated tobacco products, led by PMI's subsidiary Tabaqueira and Imperial Brands Portugal, set the stage for a shift. By 2020, production rebounded sharply to $750.4 million, driven by the ongoing development and promotion of smoke-free alternatives. Domestic market size, meanwhile, grew to $147.0 million in 2019 before falling to $123.7 million in 2020, influenced by reduced tourism and a consumer migration away from traditional cigarettes.

From 2021 onward, the market dynamics were shaped by the rising supply and demand for heated tobacco devices like IQOS and PULZE. The industry's focus on technological innovation for next-generation products intensified, with new market entries such as TheElementCBD expanding the available portfolio in 2022. While imports fluctuated between $127.4 million and $153.8 million, exports demonstrated consistent and strong growth, climbing from $695.6 million in 2018 to $1 194.6 million in 2025. This surge in exports reflects the strengthening international position of Portuguese manufacturers, supported by their diversification into heated tobacco and other smoke-free alternatives.

Production cigars, cheroots, cigarillos and cigarettes in Portugal

In value, 2018-2021, M $ US

In 2020, Portugal's production of cigars, cheroots, cigarillos, and cigarettes reached a value of 750.4 million US dollars, marking a 14.2% increase compared to the previous year. The minimum value was recorded in 2019 at 656.9 million US dollars, which saw the largest decline of 2.2%. Over the period from 2018 to 2020, production grew by 11.7%, translating to an annualized growth rate of 3.8%.

Annual dynamics of production in Portugal in value, 2018-2021, M $ US

Exports cigars, cheroots, cigarillos and cigarettes from Portugal

Exports in kind, t

Portugal's exports of cigars, cheroots, cigarillos, and cigarettes have increased for the second consecutive year. In 2021, exports amounted to 30 527 tonnes, representing a 2.2% year-over-year gain. The minimum value was recorded in 2019 at 24 345 tonnes, which experienced the largest decline of 7.0%. In contrast, the largest increase occurred in 2020 with a 22.6% rise. From 2018 to 2021, exports grew by 16.6%, corresponding to a compound annual growth rate (CAGR) of 5.3%.

Annual dynamics of product's exports from Portugal in kind, 2018-2021, t

From 2018 to 2021, Spain, Italy, and France remained the top buyers of cigars, cheroots, cigarillos, and cigarettes from Portugal. Spain accounted for 47.6% of exports in kind, Italy for 27.2%, and France for 15.9%. Together, these three countries represented 90.7% of total exports in kind.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Portugal in kind, 2018-2021

Exports in value, M $ US

Portugal's exports of cigars, cheroots, cigarillos, and cigarettes have risen for the second year in a row. In 2021, exports totaled 824.3 million US dollars, which is 9.3% higher than in 2020. The minimum value was recorded in 2019 at 645.9 million US dollars, with the largest decline of 7.1% occurring that year. The largest increase was seen in 2020, with a 16.8% jump. Between 2018 and 2021, exports increased by 18.5%, equating to an annualized growth rate of 5.8%.

Annual dynamics of product's exports from Portugal in value, 2018-2021, M $ US

During the period from 2018 to 2021, Spain, Italy, and France continued to lead as the main buyers of cigars, cheroots, cigarillos, and cigarettes from Portugal in value terms. Spain held a 44.0% share of exports in value, Italy accounted for 33.4%, and France made up 17.3%. Collectively, these three countries comprised 94.7% of total exports in value.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Portugal in value, 2018-2021

Imports cigars, cheroots, cigarillos and cigarettes to Portugal

Imports in kind, t

Portugal's imports of cigars, cheroots, cigarillos, and cigarettes have declined for the third consecutive year. In 2021, imports stood at 5 274 tonnes, showing a modest drop of 5.8% compared to the previous year. Over the period from 2018 to 2021, imports decreased by 23.1%, with a compound annual growth rate (CAGR) of -8.4%.

Annual dynamics of product's imports to Portugal in kind, 2018-2021, t

From 2018 to 2021, Poland, Germany, and Belgium were the primary suppliers of cigars, cheroots, cigarillos, and cigarettes to Portugal in terms of volume. Poland contributed 33.1% of imports in kind, Germany accounted for 22.7%, and Belgium made up 9.7%. Together, these three countries represented 65.4% of total imports in kind.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Portugal in kind, 2018-2021

Imports in value, M $ US

After two years of contraction, Portugal's imports of cigars, cheroots, cigarillos, and cigarettes increased in 2021. Imports totaled 138.1 million US dollars, up by 8.5% year-over-year. The minimum value was recorded in 2020 at 127.4 million US dollars, while the largest decline occurred in 2019 with an 11.2% drop. Over the period from 2018 to 2021, imports decreased by 9.8%, corresponding to a compound annual growth rate (CAGR) of -3.4%.

Annual dynamics of product's imports to Portugal in value, 2018-2021, M $ US

In the years 2018 to 2021, Poland, Germany, and Belgium accounted for the largest share of Portugal's imports of cigars, cheroots, cigarillos, and cigarettes in value terms. Poland held a 34.4% share, Germany accounted for 22.5%, and Belgium made up 9.7%. Combined, these three countries comprised 66.7% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Portugal in value, 2018-2021