Unmanufactured tobacco and refuse market in Central America

Earlier Report Observations

The market for unmanufactured tobacco in Central America began the period under strict regulatory pressure, with the 2018 General Tobacco Control Law introducing specific taxes and sales restrictions. Despite these measures, market volume jumped to 65 085 t in 2019, then stabilized at 66 021 t in 2020 as COVID‑19 supply chain disruptions and expanded public smoking bans partially offset demand.

From 2021 onward, the focus of regulation shifted toward alternative nicotine products. The adoption of rules for electronic nicotine delivery systems (SEAN/SSSN) in 2021, coupled with updated labeling requirements, contributed to a sharp drop in market volume to 55 972 t. A modest rebound to 58 032 t occurred in 2022, but the market fell again to 50 686 t in 2023 following proposals for new taxes on heated tobacco and larger health warnings, which further discouraged consumption of raw tobacco.

In 2024, authorities continued to tighten rules for vaping products and updated minimum tobacco taxation, maintaining the regulatory pressure that had characterized the latter part of the period.

Production unmanufactured tobacco and refuse in Central America

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

Central America's production of unmanufactured tobacco and refuse has increased for the second year in a row. In 2020, the region produced 61 986 tonnes, showing a slight 0.7% rise compared to the previous year. Looking at the period from 2017 to 2020, overall production decreased by 2.2%, which translates to an average annual decline of 0.7%. The lowest production level was in 2018 at 61 033 tonnes, when the largest drop of 3.7% occurred. In contrast, 2019 saw the biggest increase of 0.9%.

Annual dynamics of production in Central America in kind, 2017-2020, t

In value, 2017-2020, M $ US

Central America's production of unmanufactured tobacco and refuse has grown for the second consecutive year. In 2020, the output was valued at 545.8 million US dollars, representing a strong 18.6% gain over the previous year. From 2017 to 2020, production increased by 26.5%, averaging an 8.2% annual growth rate. The lowest value was recorded in 2018 at 389.9 million US dollars, which also marked the largest decline of 9.6% during this period.

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

Exports unmanufactured tobacco and refuse from Central America

Exports in kind, t

In 2020, Central America exported 13 486 tonnes of unmanufactured tobacco and refuse, a slight 2.1% increase from the year before. Over the 2017-2020 period, exports decreased by 6.5%, with a compound annual growth rate of -2.2%. The lowest volume was in 2019 at 13 208 tonnes, when the largest decline of 17.5% occurred. The highest volume was in 2018 at 16 017 tonnes, which saw the biggest increase of 11.1%.

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

From 2017 to 2020, the United States, Germany, and the Dominican Republic were the leading destinations for exports in kind. The United States accounted for 38.7% of exports, Germany for 9.5%, and the Dominican Republic for 7.9%. Together, these three countries represented 56.1% of total export flows.

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

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

Exports in value, M $ US

In 2020, Central America's exports of unmanufactured tobacco and refuse were valued at 118.7 million US dollars, marking a 20.3% rise year-over-year. Between 2017 and 2020, exports increased by 21%, with a compound annual growth rate of 6.6%. The largest decline during this period was in 2019, at 3.5%.

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

Over the 2017-2020 period, the United States, the Dominican Republic, and Germany were the main markets for exports in value terms. The United States held a 24.2% share, the Dominican Republic 16.8%, and Germany 9.2%. Combined, these three countries accounted for 50.2% of total export flows.

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

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

Imports unmanufactured tobacco and refuse to Central America

Imports in kind, t

Central America's imports of unmanufactured tobacco and refuse have increased for the third year in a row. In 2020, the region imported 17 521 tonnes, showing a measured 4.7% uptick from the previous year. From 2017 to 2020, imports surged by 115.7%, with a compound annual growth rate of 29.2%.

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

From 2017 to 2020, the United States, Ecuador, and Brazil were the top suppliers of unmanufactured tobacco and refuse to Central America. The United States accounted for 51.5% of imports in kind, Ecuador for 13.2%, and Brazil for 6.1%. Together, these three countries made up 70.9% of total imports.

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

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

Imports in value, M $ US

In 2020, Central America's imports of unmanufactured tobacco and refuse were valued at 131.2 million US dollars, which is 11.6% lower than in 2019. Over the 2017-2020 period, imports increased by 42.8%, with a compound annual growth rate of 12.6%. The lowest value was in 2018 at 88.7 million US dollars, while the highest was in 2019 at 148.4 million US dollars, when the largest increase of 67.3% occurred.

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

Throughout 2017-2020, Ecuador, the United States, and the Dominican Republic were the key markets for imports in value terms. Together, these three countries accounted for 68.4% of total import flows.

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

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