Manufactured tobacco, smoking tobacco and extracts market in Portugal

Earlier Report Observations

The Portuguese market for manufactured tobacco grew from 46.4 million dollars in 2018 to 86.3 million in 2020, a period marked by the implementation of Law No. 63/2017. This law updated smoke-free protections and transposed EU Directive 2014/40/EU, introducing mandatory authorization for new tobacco products from the Directorate-General for Economic Activities (DGAE), banning contributions from tobacco companies, and enforcing specific labeling rules with health warnings. Despite these measures aimed at reducing demand, market volume increased, driven primarily by rising imports.

Following the full enforcement of the smoking ban in enclosed public spaces in 2021, imports peaked at 129.7 million dollars that year before declining to 48.7 million in 2023. Regulatory pressure intensified with the transposition of EU Delegated Directive 2022/2100, which removed exemptions for heated tobacco products and required manufacturers to submit ingredient lists and emission levels. The subsequent Law 5/2024, published in January 2024, further tightened rules for heated tobacco, extended smoke-free protections, and maintained penalties for violations, influencing market composition particularly for newer product categories.

In 2024 and 2025, import values recovered to 62.2 million dollars and 79.1 million dollars respectively, while exports surged to 88.3 million and 114.7 million, indicating a significant shift in trade flows for manufactured tobacco.

Production manufactured tobacco, smoking tobacco and extracts in Portugal

In value, 2018-2021, K $ US

In Portugal, the output value of manufactured tobacco, smoking tobacco, and extracts reached 22 217 thousand US dollars in 2020, marking a 12.5% increase compared to the previous year. However, looking at the broader period from 2018 to 2020, production declined by 18.8%, with a compound annual growth rate of -6.7%. The lowest value was recorded in 2019 at 19 752 thousand US dollars, which also saw the largest decline of 27.8% during this timeframe.

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

In kind, 2018-2021, t

Portugal's production of manufactured tobacco, smoking tobacco, and extracts continued to decline for the second consecutive year. In 2020, the country produced 1 923 tonnes, representing an 8.2% decrease from the year before. Over the period from 2018 to 2020, production fell by 57.9%, with a compound annual growth rate of -25.1%.

Annual dynamics of production in Portugal in kind, 2018-2021, t

Exports manufactured tobacco, smoking tobacco and extracts from Portugal

Exports in kind, t

Exports of manufactured tobacco, smoking tobacco, and extracts from Portugal declined for the third year in a row. In 2021, exports amounted to 2 360 tonnes, showing a slight decrease of 1.0% compared to 2020. From 2018 to 2021, exports dropped by 63.5%, with a compound annual growth rate of -28.6%.

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

Between 2018 and 2021, the leading destinations for Portugal's exports of manufactured tobacco, smoking tobacco, and extracts in kind were Romania, accounting for 40.3% of exports, Spain with 28.5%, and Algeria at 11.3%. Together, these three countries represented 80.1% of total export flows.

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 manufactured tobacco, smoking tobacco, and extracts in value terms declined for the third consecutive year. In 2021, exports totaled 21.4 million US dollars, down by 6.4% from the previous year. Over the period from 2018 to 2021, exports decreased by 44.3%, with a compound annual growth rate of -17.7%.

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

From 2018 to 2021, Spain led the structure of Portugal's exports in value terms with a 38.3% share, followed by Romania at 33.4%, and Algeria with 11.2%. Collectively, these three destinations accounted for 82.9% of total export flows.

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

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

Imports manufactured tobacco, smoking tobacco and extracts to Portugal

Imports in kind, t

Imports of manufactured tobacco, smoking tobacco, and extracts into Portugal increased for the second consecutive year. In 2021, imports totaled 8 420 tonnes, reflecting a moderate gain of 7.4% compared to the previous year. Between 2018 and 2021, imports rose by 7.1%, equating to an annualized growth rate of 2.3%. The lowest import volume was recorded in 2019 at 7 248 tonnes, which also saw the largest decline of 7.8%. In contrast, the largest increase occurred in 2020, with an 8.2% rise.

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

Throughout 2018 to 2021, the Netherlands was the dominant source for Portugal's imports in kind, accounting for 56.5% of the total, followed by Belgium with 14.5%, and Italy at 10.0%. Together, these three countries formed the core group, representing 81.0% of total import flows.

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

In 2021, cross-border shipments of manufactured tobacco, smoking tobacco, and extracts into Portugal reached 129.7 million US dollars, a significant increase of 49.1% over the past year. Between 2018 and 2021, imports surged by 125.4%, with an annualized growth rate of 31.1%. The largest decline was recorded in 2020 at 0.5%, while the largest increase occurred in 2019, with a 51.8% rise.

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

From 2018 to 2021, Italy and the Netherlands were the core markets for Portugal's imports in value terms, jointly accounting for 80.7% of total flows. Other destinations had comparatively modest shares during this period.

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

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