Manufactured tobacco, smoking tobacco and extracts market in Germany

Earlier Report Observations

From 2018 to 2024, the German market for manufactured tobacco and substitutes contracted significantly, with volume falling from 29 177 tonnes to 15 211 tonnes. The most pronounced drop occurred in 2019, when market size nearly halved to 16 622 tonnes. A temporary recovery in 2020 brought volume back to 25 744 tonnes, but the downward trend resumed, reaching a low of 15 211 tonnes in 2024. This overall decline took place alongside a sharp rise in domestic production and steadily growing exports, indicating a structural shift toward serving international markets as local consumption diminished.

In 2024, specific regulatory and tax-related factors affected market dynamics. The abolition of the 25-gram maximum pack size for certain tobacco products from July 1st led to a surge in sales volumes in the second half of the year. Additionally, anticipatory buying ahead of a planned tobacco tax increase in January 2025 provided temporary support to cigarette sales. Despite these stimuli, the total market volume continued to decrease, partly reflecting a longer-term consumer shift toward alternative nicotine products like e-cigarettes, whose market in Germany has been expanding under a more professionalized regulatory framework since 2022.

Production manufactured tobacco, smoking tobacco and extracts in Germany

In value, 2017-2020, M $ US

In 2019, Germany's output of manufactured tobacco, smoking tobacco, and extracts was valued at 560.8 million US dollars, marking a modest 4.4% decline from 2018. The highest value was recorded in 2018 at 586.6 million US dollars, which also saw the largest increase of 4.6%.

Annual dynamics of production in Germany in value, 2017-2020, M $ US

In kind, 2017-2020, t

After two years of decline, Germany's production of manufactured tobacco, smoking tobacco, and extracts rebounded. In 2019, output reached 67,929 tonnes, showing a significant 54.0% year-on-year increase. From 2017 to 2019, production grew by 25%, equivalent to an annualized rate of 7.7%. The peak was in 2020 at 67,929 tonnes, with the largest decline occurring in 2018 at 12.9% and the largest increase in 2020 at 54.0%.

Annual dynamics of production in Germany in kind, 2017-2020, t

Exports manufactured tobacco, smoking tobacco and extracts from Germany

Exports in kind, t

Germany's export volume of manufactured tobacco, smoking tobacco, and extracts increased for the second consecutive year. In 2020, exports totaled 79,747 tonnes, representing a robust 19.4% uptick from the previous year. Over the period from 2017 to 2020, exports rose by 21.7%, with a compound annual growth rate of 6.8%. The lowest volume was recorded in 2018 at 59,780 tonnes, which also saw the largest decline of 8.8%.

Annual dynamics of product's exports from Germany in kind, 2017-2020, t

From 2017 to 2020, Germany's exports in kind were distributed across a wide range of partner countries. Poland accounted for 25.5% of exports, Iran for 8.1%, and Spain for 6.9%, with these three countries together making up just 40.6% of total flows.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Germany in kind, 2017-2020

Exports in value, M $ US

Germany's export value of manufactured tobacco, smoking tobacco, and extracts increased for the third consecutive year. In 2020, exports reached 961.6 million US dollars, reflecting a solid 20.5% gain over the past year. Between 2017 and 2020, exports grew by 26.8%, equating to an annualized rate of 8.2%.

Annual dynamics of product's exports from Germany in value, 2017-2020, M $ US

From 2017 to 2020, Germany's export portfolio for manufactured tobacco, smoking tobacco, and extracts was broad. Poland contributed 16.2% of exports in value terms, Spain 12.3%, and France 9.4%, with these three countries together accounting for only 37.9% of total exports. Many other countries held smaller but notable shares.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Germany in value, 2017-2020

Imports manufactured tobacco, smoking tobacco and extracts to Germany

Imports in kind, t

Germany's import volume of manufactured tobacco, smoking tobacco, and extracts declined for the second consecutive year. In 2020, imports stood at 37,561 tonnes, marking a moderate 4.4% decrease from the previous year. Between 2017 and 2020, imports fell by 8.5%, equivalent to an annualized rate of 2.9%. The highest volume was recorded in 2018 at 41,620 tonnes, with the largest decline in 2019 at 5.6% and the largest increase in 2018 at 1.4%.

Annual dynamics of product's imports to Germany in kind, 2017-2020, t

The partner structure for Germany's imports in kind from 2017 to 2020 remained fragmented. France accounted for 18.9% of imports, Poland for 17.3%, and the Netherlands for 13.2%, with these three countries together making up only 49.3% of total flows, and no single country holding a dominant share.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Germany in kind, 2017-2020

Imports in value, M $ US

Germany's import value of manufactured tobacco, smoking tobacco, and extracts increased for the third consecutive year. In 2020, imports reached 604.6 million US dollars, reflecting a 15.1% year-on-year rise. Over the period from 2017 to 2020, imports grew by 35.2%, with a compound annual growth rate of 10.6%.

Annual dynamics of product's imports to Germany in value, 2017-2020, M $ US

Throughout 2017 to 2020, the Netherlands was the key destination for Germany's imports in value terms, accounting for 34.8%, followed by Poland at 19.6% and Denmark at 9.1%. Together, these three countries represented 63.4% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Germany in value, 2017-2020