Tobacco cigarettes market in Portugal

Earlier Report Observations

The Portuguese tobacco cigarette market saw significant shifts in value between 2018 and 2021. Growth to 127.4 million US dollars in 2019 occurred alongside a reported increase in cigarette sales, despite successive tobacco tax hikes. The market then contracted to 107.7 million US dollars in 2020, corresponding to a documented drop in tobacco consumption influenced by the COVID-19 pandemic. A recovery to 124.1 million US dollars followed in 2021, coinciding with a rise in the average pack price and the withdrawal of the smoking cessation aid Champix, which may have sustained consumption.

Following 2021, industry dynamics were marked by a strong export orientation. Export value rose substantially, reaching 1 191.9 million US dollars by 2025. This expansion aligned with the sector's ongoing transformation, including significant investment by major players like Philip Morris International in Portuguese operational centers and a strategic shift toward next-generation tobacco products.

Production tobacco cigarettes in Portugal

In value, 2018-2021, M $ US

Portugal's tobacco cigarette production has increased for the second consecutive year. In 2021, output was valued at 823.5 million US dollars, marking a 10.0% rise compared to the previous year. Over the period from 2018 to 2021, production grew by 22.9%, with a compound annual growth rate of 7.1%. The lowest value was recorded in 2019 at 654.8 million US dollars, which saw the largest decline of 2.3%. The largest increase occurred in 2020, with a 14.3% jump.

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

In kind, 2018-2021, M unit

Tobacco cigarette production in Portugal has risen for the second year in a row. In 2021, 31 766 million units were produced, showing a modest increase of 5.4% year-over-year. From 2018 to 2021, production increased by 20%, with a compound annual growth rate of 6.3%. The largest decline was recorded in 2019 at 0.0%, while the largest increase was in 2020, with a 13.7% surge.

Annual dynamics of production in Portugal in kind, 2018-2021, M unit

Exports tobacco cigarettes from Portugal

Exports in kind, M unit

Portugal's tobacco cigarette exports have grown for the second consecutive year. In 2021, exports amounted to 35 889 million units, up by 2.4% compared to the previous year. Over the period from 2018 to 2021, exports increased by 17.2%, with a compound annual growth rate of 5.4%. The lowest value was recorded in 2019 at 28 519 million units, which saw the largest decline of 6.9%. The largest increase occurred in 2020, with a 22.8% rise.

Annual dynamics of product's exports from Portugal in kind, 2018-2021, M unit

From 2018 to 2021, Spain, Italy, and France remained the main buyers of tobacco cigarettes from Portugal. Spain accounted for 47.5% of exports in kind, Italy for 27.3%, and France for 15.9%, jointly forming 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

Tobacco cigarette deliveries from Portugal have increased for the second year in a row. In 2021, Portugal exported 822.6 million US dollars worth of tobacco cigarettes, amounting to a limited gain of 9.8% compared to 2020. Over the period from 2018 to 2021, exports grew by 19.4%, with a compound annual growth rate of 6.1%. The lowest value was recorded in 2019 at 640.6 million US dollars, which saw the largest decline of 7.0%. The largest increase occurred in 2020, with a 17.0% rise.

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

Between 2018 and 2021, Spain, Italy, and France were the primary buyers of tobacco cigarettes from Portugal in value terms. Spain accounted for 43.8% of exports, Italy for 33.6%, and France for 17.4%, jointly representing 94.8% of total exports in value terms.

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

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

Imports tobacco cigarettes to Portugal

Imports in kind, M unit

Portugal's volume of tobacco cigarette imports has declined for the third consecutive year. In 2021, imports were recorded at 5 837 million units, marking a limited drop of 3.6% compared to the previous year. Between 2018 and 2021, imports decreased by 21.4%, equating to an annualized rate of 7.7%.

Annual dynamics of product's imports to Portugal in kind, 2018-2021, M unit

From 2018 to 2021, Poland, Germany, and Belgium remained the leading sources in the country structure of imports in kind. Poland accounted for 34.9% of imports, Germany for 23.9%, and Belgium for 10.4%, with a combined share of 69.2% of total 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

After a two-year fall, tobacco cigarette imports into Portugal have increased. In 2021, imports came to 123.2 million US dollars, up by 13.2% year-over-year. Between 2018 and 2021, imports decreased by 6.2%, equating to an annualized rate of 2.1%. The lowest value was recorded in 2020 at 108.8 million US dollars, while the largest decline occurred in 2019, with a 13.9% drop.

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

In the period from 2018 to 2021, Poland, Germany, and Belgium formed the main cluster of markets for imports in value terms. Poland accounted for 38.7% of imports, Germany for 24.0%, and Belgium for 11.0%, with a combined share of 73.6% of total flows.

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

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