Unmanufactured tobacco and refuse market in Armenia

Earlier Report Observations

The market for unmanufactured tobacco in Armenia expanded at the start of the period, reaching 25 284 t in 2019. This growth was linked to increased production of tobacco products by the market's three dominant manufacturers under the Grand Holding corporation, which raised demand for imported raw leaf tobacco.

Following the peak, the market volume contracted sharply, falling to 11 227 t in 2021 and further to approximately 6 000 t in 2022-2023. A significant reduction in tobacco cultivation area in prior years limited domestic raw material supply, while regional factors, including the flow of illicit tobacco products from Armenia to Russia, affected official trade patterns.

By 2023, the market stabilized at 5 993 t. Domestic cigarette production continued to grow, sustaining some demand for raw tobacco, but the overall market size remained well below its earlier highs as the industry adjusted to these structural shifts.

Production unmanufactured tobacco and refuse in Armenia

In kind, 2017-2020, t

Top producers of unmanufactured tobacco and refuse, 2017-2020

World map of production of unmanufactured tobacco and refuse, 2017-2020

In 2020, Armenia produced 716 tons of unmanufactured tobacco and refuse, marking a significant year-over-year decline of 24.4%. Looking at the broader period from 2017 to 2020, production fell by 34.1%, which translates to an annualized decrease of 13.0%. The only increase during this timeframe occurred in 2019, with a modest rise of 3.6%.

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

Exports unmanufactured tobacco and refuse from Armenia

Exports in kind, t

Armenia's exports of unmanufactured tobacco and refuse in kind dropped to zero tons in 2020, representing a sharp year-over-year contraction of 99.9%. Over the four-year span from 2017 to 2020, exports completely ceased, declining by 100% at an annualized rate of 97.4%.

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

From 2017 to 2020, Russia consistently served as the dominant and nearly exclusive destination for Armenia's exports of unmanufactured tobacco and refuse in kind, accounting for 98.5% of the total.

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

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

Exports in value, K $ US

In 2020, Armenia's exports of unmanufactured tobacco and refuse in value terms amounted to zero thousand US dollars, reflecting a substantial drop of 99.8% compared to the previous year. Over the 2017-2020 period, exports decreased by 100%, with a compound annual growth rate (CAGR) of -94.3%.

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

Throughout 2017-2020, Russia was the key and almost sole market for Armenia's exports of unmanufactured tobacco and refuse in value terms, making up 91.4% of the total export flows.

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

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

Imports unmanufactured tobacco and refuse to Armenia

Imports in kind, t

The import market for unmanufactured tobacco and refuse in kind showed volatility during the observed period. Imports reached their lowest point in 2017 and peaked in 2019, with a 2.6-fold difference between these years. In 2020, Armenia imported approximately 19 446 tons, marking a 20.1% decrease from the prior year. The highest volume was recorded in 2019 at 24 338 tons, while the largest increase occurred in 2018, with a jump of 115.1%.

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

Between 2017 and 2020, Brazil, India, and Zimbabwe were the principal suppliers of unmanufactured tobacco and refuse in kind to Armenia. Brazil accounted for 26.2% of imports, India for 22.5%, and Zimbabwe for 18.0%, collectively representing 66.6% of total imports in kind.

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

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

Imports in value, K $ US

The import data in value terms reveals irregular changes, indicating a volatile market environment. Imports hit their lowest point in 2017 and peaked in 2019, showing a 2.8-fold difference. In 2020, Armenia's imports of unmanufactured tobacco and refuse reached 73 914 thousand US dollars, reflecting a strong reduction of 24.9% from the year before. The maximum value was recorded in 2019 at 98 388 thousand US dollars, with the largest increase occurring in 2018 at 125.1%.

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

From 2017 to 2020, India, Zimbabwe, and Brazil stood out as the main sources for Armenia's imports of unmanufactured tobacco and refuse in value terms. India contributed 23.7%, Zimbabwe 21.8%, and Brazil 19.3%, together accounting for 64.7% of total import flows.

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

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