Unmanufactured tobacco and refuse market in Latin America and the Caribbean

Earlier Report Observations

Between 2018 and 2020, the market volume for unmanufactured tobacco in Latin America and the Caribbean contracted from 569 thousand tons to 481 thousand tons. This decline was driven by the COVID-19 pandemic, which reduced consumer demand for smokeless tobacco products due to health risks and lax public health measures, thereby lowering need for raw leaf tobacco.

After a recovery to 566 thousand tons in 2021, the market fell sharply to 300 thousand tons in 2022. This drop coincided with a significant increase in regional tobacco exports and was compounded by adverse climatic factors—including temperature rises, irregular rainfall, and droughts—that disrupted crop yields and created irregular raw material supply. By 2023, the market partially rebounded to 422 thousand tons, supported by high global production led by China, although persistent weather-related challenges continued to influence supply conditions.

Production unmanufactured tobacco and refuse in Latin America and the Caribbean

In kind, 2017-2020, K t

Top producers of unmanufactured tobacco and refuse, 2017-2020

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

In Latin America and the Caribbean, production of unmanufactured tobacco and refuse reached 948 thousand tons in 2020, marking a gradual decline of 6.4% from 2019. Over the period from 2017 to 2020, production fell by 16.1%, which translates to an annualized decrease of 5.7%. The most significant drop occurred in 2018, with an 11.5% reduction, while 2019 saw a modest increase of 1.2%.

Annual dynamics of production in Latin America and the Caribbean in kind, 2017-2020, K t

In value, 2017-2020, M $ US

The production of unmanufactured tobacco and refuse in Latin America and the Caribbean declined for the third year in a row. In 2020, the output was valued at 3 439 million US dollars, reflecting a substantial contraction of 19.9% compared to 2019. From 2017 to 2020, production decreased by 35.2%, equating to an annualized rate of decline of 13.5%.

Annual dynamics of production in Latin America and the Caribbean in value, 2017-2020, M $ US

Exports unmanufactured tobacco and refuse from Latin America and the Caribbean

Exports in kind, K t

In 2020, deliveries of unmanufactured tobacco and refuse from Latin America and the Caribbean stood at 557.8 thousand tons, showing an 8.1% year-over-year decline. The lowest volume was recorded in 2018 at 529.1 thousand tons, while the peak occurred in 2019 with 607.0 thousand tons. The largest increase was in 2019, with a rise of 14.7%.

Annual dynamics of product's exports from Latin America and the Caribbean in kind, 2017-2020, K t

From 2017 to 2020, Belgium, the United States, and China played notable but not dominant roles as buyers of unmanufactured tobacco and refuse from Latin America and the Caribbean. Belgium accounted for 22.2% of exports in kind, the United States for 10.3%, and China for 8.6%. Together, their combined share reached only 41.0% of total exports in kind.

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

World map of product's exports from Latin America and the Caribbean in kind, 2017-2020

Exports in value, M $ US

In 2020, exports of unmanufactured tobacco and refuse from Latin America and the Caribbean amounted to 2 023 million US dollars, corresponding to a drop of 21.4% compared to 2019. Between 2017 and 2020, exports decreased by 23.1%, which equates to an annualized decline of 8.4%. The largest increase was recorded in 2019, with a rise of 4.9%.

Annual dynamics of product's exports from Latin America and the Caribbean in value, 2017-2020, M $ US

From 2017 to 2020, unmanufactured tobacco and refuse from Latin America and the Caribbean was traded with numerous countries. Even the largest destinations—Belgium, China, and the United States—together represented only 44.4% of total exports in value terms.

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

World map of product's exports from Latin America and the Caribbean in value, 2017-2020

Imports unmanufactured tobacco and refuse to Latin America and the Caribbean

Imports in kind, K t

The volume of unmanufactured tobacco and refuse imports into Latin America and the Caribbean declined for the second consecutive year. In 2020, imports totaled 90.5 thousand tons, indicating a controlled loss of 4.1% compared to 2019. The highest volume was recorded in 2018 at 97.3 thousand tons, with the largest increase that year of 5.8%.

Annual dynamics of product's imports to Latin America and the Caribbean in kind, 2017-2020, K t

From 2017 to 2020, the country structure of imports in kind was highly diversified. The United States accounted for 15.5% of imports in kind, India for 5.7%, and Indonesia for 4.8%. Together, these three countries represented only 26.0% of total flows, with a long tail of smaller markets making up the remaining 74.0%.

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

World map of product's imports to Latin America and the Caribbean in kind, 2017-2020

Imports in value, M $ US

Imported volumes of unmanufactured tobacco and refuse in Latin America and the Caribbean increased for the third consecutive year. In 2020, the total value imported was recorded with only a marginal fluctuation from the previous year. Between 2017 and 2020, imports rose by 28.1%, equating to an annualized growth rate of 8.6%.

Annual dynamics of product's imports to Latin America and the Caribbean in value, 2017-2020, M $ US

From 2017 to 2020, the United States, Indonesia, and the Philippines served as notable but not dominant suppliers of unmanufactured tobacco and refuse to Latin America and the Caribbean. The United States accounted for 23.0% of imports in value terms, Indonesia for 5.2%, and the Philippines for 3.4%. Their combined share reached only 31.6% of total imports in value terms.

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

World map of product's imports to Latin America and the Caribbean in value, 2017-2020