Unmanufactured tobacco and refuse market in Lebanon

Earlier Report Observations

The market for unmanufactured tobacco in Lebanon contracted from 8 860 t in 2018 to 6 126 t in 2020, with a sharp drop in 2019 driven by exceptionally high export volumes that reduced domestic availability. During this period, the state-owned monopoly Regie laid the groundwork for future demand by expanding local cigarette manufacturing, starting with the production of Marlboro in 2018 and signing an agreement with Japan Tobacco International (JTI) in 2019 to produce its brands domestically.

From 2021 onward, the market volume entered a phase of rapid expansion, reaching 18 433 t by 2023. This growth was primarily fueled by rising imports of raw tobacco, needed to supply Regie's expanding processing capacity, which included a USD 17 million investment to upgrade its main plant. Despite a reported contraction of over 30% in domestic tobacco cultivation in 2023, demand remained strong due to Regie's production agreements with global firms like Imperial Tobacco and JTI, which increased the need for imported raw material.

In 2024, imports continued their upward trajectory, reaching 10 024 t, while exports remained subdued. Factors such as the ongoing expansion of local manufacturing for international tobacco brands and financial aid to farmers from Regie indicate sustained industrial demand for unmanufactured tobacco, even as local production faces challenges.

Production unmanufactured tobacco and refuse in Lebanon

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

Lebanon's production of unmanufactured tobacco and refuse saw a two-year decline before increasing again. In 2019, production reached its lowest point at 10 267 tonnes, marking a 0.9% decrease. The following year in 2020, production remained nearly unchanged at 10 309 tonnes compared to 2019.

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

Exports unmanufactured tobacco and refuse from Lebanon

Exports in kind, t

Lebanon's exports of unmanufactured tobacco and refuse showed noticeable fluctuations during this period. The lowest volume was recorded in 2018 at 4 929 tonnes, while exports peaked in 2019 at 8 883 tonnes, representing an 80.2% increase. In 2020, exports declined to 7 933 tonnes, which was 10.7% lower than the previous year. Overall, export volumes varied 1.8 times between the high in 2019 and the low in 2018.

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

From 2017 to 2020, Greece, Egypt, and Bulgaria remained the top buyers of Lebanon's unmanufactured tobacco and refuse exports. Greece accounted for 29.6% of exports in kind, Egypt for 22.8%, and Bulgaria for 22.0%. Together, these three countries represented 74.5% of Lebanon's total exports in kind during this period.

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

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

Exports in value, K $ US

After two consecutive years of growth, Lebanon's exports of unmanufactured tobacco and refuse in value terms declined in 2020. Exports reached $27 068 thousand US dollars that year, down 8.4% from 2019. The highest value was recorded in 2019 at $29 558 thousand US dollars, following a 1.7% increase in 2018. Between 2017 and 2020, exports decreased by 5.8%, equivalent to an annualized rate of 2.0%.

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

Throughout the 2017-2020 period, Greece, Egypt, and Bulgaria continued to dominate Lebanon's exports of unmanufactured tobacco and refuse in value terms. Together, these three markets accounted for 82.3% of total export flows.

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

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

Imports unmanufactured tobacco and refuse to Lebanon

Imports in kind, t

Lebanon's imports of unmanufactured tobacco and refuse in volume terms showed mixed trends. The lowest volume was recorded in 2018 at 3 427 tonnes, while imports peaked in 2019 at 4 435 tonnes, representing a 29.4% increase. In 2020, imports contracted to 3 749 tonnes, which was 15.5% lower than the previous year. Between 2017 and 2020, imports increased by 8.5%, equivalent to an annualized growth rate of 2.8%.

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

From 2017 to 2020, Brazil, the United States, and Greece were the main sources of Lebanon's unmanufactured tobacco and refuse imports in volume terms. Brazil accounted for 44.0% of imports in kind, the United States for 33.5%, and Greece for 10.2%. Together, these three countries represented 87.7% of Lebanon's total imports in kind during this period.

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

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

Imports in value, K $ US

Lebanon's imports of unmanufactured tobacco and refuse in value terms followed a similar pattern. The lowest value was recorded in 2018 at $17 901 thousand US dollars, while imports reached their peak in 2019 at $23 147 thousand US dollars, marking a 29.3% increase. In 2020, imports declined to $19 330 thousand US dollars, which was 16.5% lower than the previous year. Over the 2017-2020 period, imports increased by 6.9%, with a compound annual growth rate of 2.2%.

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

From 2017 to 2020, the United States, Brazil, and Greece were the principal markets for Lebanon's imports of unmanufactured tobacco and refuse in value terms. Together, these three countries accounted for 87.6% of total import flows during this period.

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

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