Tobacco cigars, cheroots and cigarillos market in Spain

Earlier Report Observations

Spanish cigar production declined from $157.4 million in 2018 to $138.5 million in 2020, contributing to a contraction in total market size from $233.4 million to $186.0 million over the same period. Throughout these years, the state-owned company Tabacalera remained a key market actor, maintaining production of historic brands like Farias at traditional factories in La Coruña and Bilbao. However, the absence of new market entrants or significant regulatory changes provided no impetus for production growth.

Following 2020, import values fluctuated, peaking at $157.8 million in 2023, while exports rose steadily to a high of $135.9 million that same year. In 2023, the Boletín Oficial del Estado (BOE) implemented updated official retail prices for cigars and cigarillos, effective from August and October under Law 13/1998. These price adjustments, aimed at stabilizing state tax revenue and protecting the commercial margins of major tobacco firms amidst inflation and shifting consumption habits, likely influenced trade dynamics, contributing to the surge in imports of premium products.

By 2024, exports had moderated to $123.3 million and imports to $153.7 million, indicating a degree of market stabilization. Price regulation via the BOE continued as a central tool of state influence on the market, complementing the enduring presence of Tabacalera as a dominant domestic producer.

Production tobacco cigars, cheroots and cigarillos in Spain

In value, 2017-2020, M $ US

Spain's production of tobacco cigars, cheroots, and cigarillos declined for the second year in a row. In 2020, output was valued at 138.5 million US dollars, marking a significant decrease of 10.1% compared to the previous year. Over the period from 2017 to 2020, production fell by 9.7%, with a compound annual growth rate of 3.3%. The highest value was recorded in 2018 at 157.4 million US dollars, which also saw the largest increase of 2.7%.

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

Exports tobacco cigars, cheroots and cigarillos from Spain

Exports in kind, t

Exports of tobacco cigars, cheroots, and cigarillos from Spain increased for the third consecutive year. In 2020, exports reached 1 328 tonnes, showing a slight rise of 2.3% compared to 2019. Between 2017 and 2020, exports grew by 19.9%, equivalent to an annualized rate of 6.2%.

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

From 2017 to 2020, Germany, France, and the United Kingdom were the leading destinations for Spain's exports of tobacco cigars, cheroots, and cigarillos in volume terms. Germany accounted for 54.2% of exports, France for 16.3%, and the United Kingdom for 7.8%, together making up 78.3% of total export flows.

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

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

Exports in value, M $ US

The value of exported tobacco cigars, cheroots, and cigarillos from Spain rose for the second year in a row. In 2020, exports totaled 89.4 million US dollars, representing an increase of 8.0% over the prior year. Between 2017 and 2020, exports grew by 16.7%, with an annualized rate of 5.3%. The lowest value was recorded in 2018 at 73.0 million US dollars, which also experienced the largest decline of 4.7%. In contrast, 2019 saw the largest increase of 13.4%.

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

During 2017–2020, Germany, France, and the United Kingdom were the main destinations for Spain's exports of tobacco cigars, cheroots, and cigarillos in value terms. Germany held a 41.2% share, France 15.6%, and the United Kingdom 8.3%, collectively accounting for 65.1% of total export value.

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

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

Imports tobacco cigars, cheroots and cigarillos to Spain

Imports in kind, t

After two years of growth, the volume of tobacco cigars, cheroots, and cigarillos imported into Spain declined. In 2020, imports stood at 1 891 tonnes, reflecting a drop of 20.6% from the previous year. Over the period from 2017 to 2020, imports decreased by 3.9%, with a compound annual growth rate of 1.3%. The peak was in 2019 at 2 383 tonnes, which also recorded the largest increase of 15.3%.

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

From 2017 to 2020, Germany, the Netherlands, and Belgium were the largest suppliers of tobacco cigars, cheroots, and cigarillos to Spain in volume terms. Germany contributed 47.1% of imports, the Netherlands 11.6%, and Belgium 10.7%, together forming 69.4% of total import volume.

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

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

Imports in value, M $ US

Imports of tobacco cigars, cheroots, and cigarillos into Spain fell for the second consecutive year. In 2020, import value amounted to 136.9 million US dollars, equivalent to a decrease of 3.0% from the year before. The highest value was recorded in 2018 at 148.9 million US dollars, which also saw the largest increase of 6.7%. In 2019, the largest decline occurred, with a drop of 5.2%.

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

Over 2017–2020, Germany, Cuba, and the Netherlands led as the top suppliers of tobacco cigars, cheroots, and cigarillos to Spain in value terms. Germany accounted for 37.9% of imports, Cuba for 17.7%, and the Netherlands for 15.2%, with their combined share reaching 70.8% of total import value.

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

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