Unmanufactured tobacco and refuse market in Georgia

Earlier Report Observations

Between 2018 and 2023, the Georgian market for unmanufactured tobacco experienced considerable volatility in its total volume. After starting at 1 226 t in 2018, the market size contracted significantly to 838 t in 2019 and stabilized around 834 t in 2020. A strong recovery followed, with the market expanding to 1 411 t in 2021 and reaching a period peak of 1 443 t in 2022, before declining again to 1 160 t in 2023.

These shifts were primarily driven by trade flows, as domestic production remained stable at approximately 272-273 t per year throughout the period. The market contraction in 2019 and 2020 coincided with a sharp drop in imports, which fell from 1 079 t to around 570-580 t. The subsequent rebound in 2021 and 2022 was fueled by a surge in imports, which exceeded 3 100 t in 2022.

The record-high import volume in 2022 was offset by an unprecedented export volume of 1 953 t, which prevented an even larger market expansion. By 2023, reduced import volumes of 946 t, combined with a return to more typical export levels, led to the market size settling at 1 160 t.

Production unmanufactured tobacco and refuse in Georgia

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, Georgia produced 272.7 t of unmanufactured tobacco and refuse, showing only a slight fluctuation compared to 2019. The lowest production level was recorded in 2018 at 270.4 t, which represented the largest decline of 1.6%. In contrast, 2019 saw the largest increase in production at 1.0%.

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

Exports unmanufactured tobacco and refuse from Georgia

Exports in kind, t

The export market for unmanufactured tobacco and refuse from Georgia showed an unstable trend during the period. Exports reached their lowest point in 2020 at 10 t, marking a significant decline of 36.7% compared to 2019. The peak was in 2018 at 123 t, resulting in a 12.8-fold difference between these years. The largest decline occurred in 2019 at 87.7%, while the largest increase was recorded in 2018 at 86.5%.

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

From 2017 to 2020, Germany, Hungary, and Turkey were the key destinations for Georgia's exports of unmanufactured tobacco and refuse in kind. Germany accounted for 36.2% of exports, Hungary for 17.2%, and Turkey for 14.8%, together making up 68.2% of total export flows.

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

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

Exports in value, K $ US

The export market in value terms displayed volatility over the observed period. In 2020, Georgia's exports of unmanufactured tobacco and refuse amounted to 41 K $ US, showing a limited decline of 9.8% compared to the previous year. The maximum value was recorded in 2018 at 288 K $ US, creating a 7.1-fold gap with the 2020 low. The largest decline occurred in 2019 at 84.3%, while the largest increase was in 2018 at 61.3%.

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

During 2017–2020, Germany, Hungary, and Turkey remained the main buyers of unmanufactured tobacco and refuse from Georgia in value terms. Germany contributed 30.1% of exports, Hungary 21.0%, and Turkey 18.8%, jointly forming 69.9% of total export value.

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

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

Imports unmanufactured tobacco and refuse to Georgia

Imports in kind, t

Imports of unmanufactured tobacco and refuse to Georgia declined for the third consecutive year. In 2020, imports totaled 571 t, indicating a fall of 1.7% compared to 2019. Over the period from 2017 to 2020, imports decreased by 50.7%, which equates to an annualized rate of 21.0%.

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

From 2017 to 2020, Brazil, India, and China were the leading sources for Georgia's imports of unmanufactured tobacco and refuse in kind. Brazil accounted for 38.0% of imports, India for 23.1%, and China for 9.9%, together taking 71.0% of total import flows.

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

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

Imports in value, K $ US

After a two-year reduction, cross-border shipments of unmanufactured tobacco and refuse to Georgia increased in value. In 2020, imports amounted to a value that showed a robust rise of 17.5% year-over-year. Between 2017 and 2020, imports decreased by 44%, equating to an annualized rate of 17.6%. The minimum value was recorded in 2019 at 2 059 K $ US, which also saw the largest decline of 35.4%.

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

In 2017–2020, Brazil, India, and China were the main destinations in the geographical breakdown of imports in value terms for unmanufactured tobacco and refuse to Georgia. Brazil represented 49.5% of imports, India 17.0%, and China 7.8%, with a combined share of 74.3% of total flows.

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

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