Unmanufactured tobacco and refuse market in China

Earlier Report Observations

The market for unmanufactured tobacco in China saw considerable movement from 2018 to 2023, starting with a rise to 2.57 million tons in 2019. This growth was primarily driven by the expansion of new tobacco products, such as e-cigarettes and heated tobacco, which entered the market and led traditional tobacco companies to increase their investment and production. The subsequent sharp contraction to 2.04 million tons in 2020 resulted from COVID-19 pandemic disruptions to global supply chains and a tightening of e-cigarette regulations that forced some smaller producers out.

Market recovery began in 2021, with volume reaching 2.31 million tons by 2023. The introduction of national standards for e-cigarettes, which placed them under the tobacco monopoly administration, provided regulatory clarity and helped stabilize the sector. Concurrently, sustained investment by traditional firms in harm-reduction technologies and innovation spurred demand for newer, reduced-risk tobacco products, supporting overall market expansion.

Later in the period, stricter smoking control policies in public places and growing consumer health awareness continued to shape consumption patterns. Additionally, global climate anomalies affecting tobacco leaf production in key regions introduced supply-side pressures, while companies like China Tobacco Hong Kong actively developed overseas markets with novel products such as tea-based heated tobacco, further diversifying the industry landscape.

Production unmanufactured tobacco and refuse in China

In kind, 2017-2020, K t

Globally, China was the leading producer of unmanufactured tobacco and refuse from 2017 to 2020.

Top producers of unmanufactured tobacco and refuse, 2017-2020

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

In 2020, China produced 2 134 K t of unmanufactured tobacco and refuse, marking an 18.3% decrease from 2019. Production peaked in 2019 at 2 612 K t, with the largest annual increase of 16.5% recorded that year. Over the 2017-2020 period, production declined by 10.7%, averaging a 3.7% annualized rate.

Annual dynamics of production in China in kind, 2017-2020, K t

In value, 2017-2020, M $ US

In 2020, the output of unmanufactured tobacco and refuse in China was valued at 5 235 M $ US, showing a sharp 31.0% year-over-year decline. The highest value was recorded in 2019 at 7 582 M $ US, which also saw the largest annual increase of 16.5%. From 2017 to 2020, production value fell by 27.3%, with a compound annual growth rate of -10.1%.

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

Exports unmanufactured tobacco and refuse from China

Exports in kind, K t

In 2020, China exported 185.6 K t of unmanufactured tobacco and refuse, down 4.3% from the previous year. The largest decline occurred in 2018 at 9.4%, while the largest increase was in 2019 at 4.0%. Over the 2017-2020 period, exports decreased by 9.9%, with an annualized rate of 3.4%.

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

From 2017 to 2020, the top buyers of unmanufactured tobacco and refuse from China were Belgium, accounting for 22.9% of exports in kind, Indonesia with 20.3%, and the United Arab Emirates at 9.4%. Together, these three countries made up 52.7% of total exports in kind.

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

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

Exports in value, M $ US

In 2020, China's exports of unmanufactured tobacco and refuse reached 455 M $ US, a 19.1% decrease compared to 2019. The largest increase was recorded in 2019 at 4.0%. Over the 2017-2020 period, exports declined by 26.6%, with an annualized rate of 9.8%.

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

From 2017 to 2020, the three largest markets for China's exports in value terms were Indonesia, Belgium, and the United Arab Emirates, collectively accounting for 59.6% of total flows.

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

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

Imports unmanufactured tobacco and refuse to China

Imports in kind, K t

In 2020, China imported 88.4 K t of unmanufactured tobacco and refuse, a 42.6% drop from the previous year. Imports peaked in 2019 at 153.9 K t, which also saw the largest annual increase of 19.1%. Over the 2017-2020 period, imports decreased by 39.8%, with a compound annual growth rate of -15.6%.

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

From 2017 to 2020, the main suppliers of unmanufactured tobacco and refuse to China were Zimbabwe, contributing 46.4% of imports in kind, Brazil with 29.9%, and the United States at 7.1%. Together, these three countries accounted for 83.5% of total imports in kind.

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

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

Imports in value, M $ US

In 2020, China's imports of unmanufactured tobacco and refuse amounted to 774 M $ US, representing a significant 35.5% decrease from the previous year. The largest increase was in 2019 at 12.3%. Over the 2017-2020 period, imports fell by 36.3%, with an annualized rate of 13.9%.

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

From 2017 to 2020, the leading sources for imports in value terms were Zimbabwe, accounting for 52.4% of imports, Brazil with 24.7%, and the United States at 7.7%. These three countries jointly made up 84.7% of total flows.

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

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