Unmanufactured tobacco and refuse market in Chile

Earlier Report Observations

The volume of the unmanufactured tobacco market in Chile grew from 12 474 t in 2018 to a peak of 14 125 t in 2020. This expansion was supported by rising consumption of menthol cigarettes, particularly among women and younger demographics, which increased overall tobacco demand. However, in 2021 the market collapsed to 7 136 t, a drop of almost 50%, following the Senate Health Commission's move to prohibit menthol and other additives in tobacco products. The simultaneous advance toward plain packaging regulations further reduced the appeal of conventional cigarettes, cutting into market volume.

Regulatory pressure continued to shape the market in the following years. The 2022 "chao colillas" law banned smoking in sports venues and entertainment spaces, while new graphic health warnings aimed to deter consumption, especially among youth. These measures contributed to a further decline, with the market volume falling to 6 084 t by 2023. Although illicit trade in cigarettes reportedly surged during this period, diverting some demand away from the legal market, the overarching trend was one of contraction driven by public health policies.

The legislative environment tightened again in 2024 with the regulation of electronic cigarettes and vaping devices, which were equated to tobacco products and subjected to similar sales and advertising restrictions. From May 2025, all tobacco products, including e‑cigarettes, must carry standardized health warnings. These steps reinforced the shift away from traditional tobacco and maintained downward pressure on the unmanufactured tobacco market.

Production unmanufactured tobacco and refuse in Chile

In kind, 2018-2021, t

Top producers of unmanufactured tobacco and refuse, 2018-2021

World map of production of unmanufactured tobacco and refuse, 2018-2021

Chile's production of unmanufactured tobacco and refuse declined for the second consecutive year. In 2021, the country produced 3 925 tonnes, representing a year-on-year decrease of 39.0%. Between 2018 and 2021, production fell by 31.1%, which translates to an annualized decline rate of 11.7%. The highest production level was recorded in 2019 at 7 362 tonnes, which also saw the largest annual increase of 29.1%.

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

Exports unmanufactured tobacco and refuse from Chile

Exports in kind, t

Market performance showed noticeable fluctuations during this period. Exports reached their lowest point in 2020 at 22 tonnes, then peaked in 2021 at 64 tonnes, representing a 2.9-fold increase between these two years. The 2021 export volume marked a significant gain of 187.2% compared to the previous year. The largest decline occurred in 2020, when exports fell by 46.0%.

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

Between 2018 and 2021, three principal markets dominated Chile's exports of unmanufactured tobacco and refuse in volume terms. Brazil, the United Kingdom, and Belgium together accounted for 92.0% of total exports during this period.

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

World map of product's exports from Chile in kind, 2018-2021

Exports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Export values dropped to their minimum in 2019, then climbed to their maximum in 2020, showing a 1.9-fold increase between these years. In 2021, Chile exported 403 thousand US dollars worth of unmanufactured tobacco and refuse, marking a significant loss of 18.2% compared to the previous year. The highest value was recorded in 2020 at 493 thousand US dollars, which also saw the largest annual increase of 91.1%.

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

Throughout the 2018-2021 period, three markets formed the core group for Chile's exports of unmanufactured tobacco and refuse in value terms. Brazil accounted for 36.7% of exports, the United States for 33.7%, and the United Kingdom for 15.4%. Together, these three markets represented 85.8% of total export value flows.

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

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

Imports unmanufactured tobacco and refuse to Chile

Imports in kind, t

Chile imported approximately 3 275 tonnes of unmanufactured tobacco and refuse in 2021, amounting to a sudden drop of 57.5% year-on-year. Between 2018 and 2021, imports decreased by 51.7%, equating to an annualized decline rate of 21.5%. The maximum import volume was recorded in 2020 at 7 708 tonnes, which also saw the largest annual increase of 33.5%.

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

Over the 2018-2021 period, three countries remained the leading sources for Chile's imports of unmanufactured tobacco and refuse in volume terms. Brazil accounted for 41.0% of imports, Colombia for 36.4%, and Argentina for 5.4%. Together, these three markets represented 82.8% of total import flows.

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

World map of product's imports to Chile in kind, 2018-2021

Imports in value, K $ US

Market performance showed noticeable fluctuations during this period. Import values reached their peak in 2020, then dropped to their trough in 2021, showing a 3.5-fold decrease between these years. In 2021, Chile imported 8 025 thousand US dollars worth of unmanufactured tobacco and refuse, marking an abrupt drop of 71.3% compared to the previous year. The maximum value was recorded in 2020 at 27 976 thousand US dollars, which also saw the largest annual increase of 25.4%.

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

Between 2018 and 2021, three principal markets dominated Chile's imports of unmanufactured tobacco and refuse in value terms. Colombia, Brazil, and Turkey together accounted for 76.0% of total imports during this period.

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

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