Unmanufactured tobacco and refuse market in MENA

Earlier Report Observations

The market for unmanufactured tobacco and refuse in the MENA region experienced notable fluctuations between 2018 and 2023. Volume grew from 261.4 thousand tons in 2018 to a peak of 301.6 thousand tons in 2020, before contracting sharply to 244.1 thousand tons in 2021. A recovery to 276.9 thousand tons followed in 2022, but the market declined again to 251.9 thousand tons in 2023. Armed conflicts in the region disrupted agricultural and industrial supply chains in the initial period, while a reported reduction of over 30% in cultivated area and domestic tobacco production consistently constrained local supply.

Oil price fluctuations and production restrictions in 2019 affected local monetary conditions, yet market volume continued to rise, supported by growing imports. The sharp market contraction in 2021 coincided with a significant drop in imports. In 2022, a surge in imports offset the ongoing decline in domestic production, leading to market growth. The 2023 downturn was driven by a combination of further production declines and a substantial increase in exports, which outweighed higher import volumes.

Regulatory developments gained momentum in 2024, with Oman introducing plain packaging for tobacco products—the second country in the Eastern Mediterranean region to do so—to strengthen control. New legislation was also implemented in some countries to curb tobacco industry interference in policy. Concurrently, a decree allowed private sector investment in tobacco manufacturing and marketing, opening the market to new players. Consumer preferences are shifting towards organic tobacco and smoke-free products, prompting increased R&D investments by major international companies, while the expansion of e-commerce is reshaping distribution channels.

Production unmanufactured tobacco and refuse in MENA

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

MENA's production of unmanufactured tobacco and refuse has grown for the third year in a row. In 2020, the region produced 99 324 tonnes, marking a 1.7% increase from 2019. Looking at the period from 2017 to 2020, production rose by 19.4%, which translates to an average annual growth rate of 6.1%.

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

In value, 2017-2020, M $ US

Following two years of decline, MENA's production of unmanufactured tobacco and refuse rebounded in value terms. In 2020, the output was valued at 368.0 million US dollars, up 12.4% from 2019. However, over the full 2017-2020 period, production value fell by 15.6%, with a compound annual growth rate of -5.5%. The lowest value was recorded in 2019 at 327.4 million US dollars, which also saw the steepest drop of 17.0%.

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

Exports unmanufactured tobacco and refuse from MENA

Exports in kind, K t

MENA's exports of unmanufactured tobacco and refuse have increased for the second consecutive year. In 2020, exports reached 22.2 thousand tonnes, a significant 19.4% rise compared to 2019. From 2017 to 2020, exports grew by 14.6%, averaging 4.6% per year. The lowest export volume was in 2018 at 11.9 thousand tonnes, which also experienced the largest decline of 38.6%. In contrast, 2019 saw the biggest increase at 56.2%.

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

Between 2017 and 2020, the geographical distribution of MENA's exports in volume was highly diverse. The top three destinations—Greece (12.3%), Russia (11.6%), and Bulgaria (10.1%)—collectively accounted for just 34.0% of total exports. The remaining 66.0% was spread across numerous smaller partner countries.

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

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

Exports in value, M $ US

MENA's exports of unmanufactured tobacco and refuse in value terms have risen for the second year in a row. In 2020, exports totaled 82.2 million US dollars, a 32.0% increase from 2019. However, over the 2017-2020 period, export value decreased by 19%, with a compound annual growth rate of -6.8%. The lowest value was recorded in 2018 at 55.5 million US dollars, which also saw the largest decline of 45.4%.

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

From 2017 to 2020, MENA's exports of unmanufactured tobacco and refuse in value terms reached a wide range of markets. Even the top three destinations—Greece, Bulgaria, and Belgium—together represented only 28.6% of total export value, highlighting the diversity of trade partners.

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

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

Imports unmanufactured tobacco and refuse to MENA

Imports in kind, K t

MENA's imports of unmanufactured tobacco and refuse have grown for the third consecutive year. In 2020, imports amounted to approximately 224.5 thousand tonnes, a 4.3% year-on-year increase. Between 2017 and 2020, imports surged by 46.9%, averaging an annual growth rate of 13.7%.

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

Over the 2017-2020 period, India (19.6%), Brazil (18.3%), and China (16.4%) consistently led as the top sources for MENA's imports in volume. Together, these three countries accounted for 54.3% of total import flows.

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

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

Imports in value, M $ US

MENA's imports of unmanufactured tobacco and refuse in value terms have increased for the third year in a row. In 2020, imports stood at 802.7 million US dollars, showing little change from 2019. From 2017 to 2020, import value rose by 28.4%, with a compound annual growth rate of 8.7%.

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

During 2017-2020, the partner landscape for MENA's imports in value terms was broad. India (18.5%), Brazil (17.0%), and China (14.3%) together formed only 49.8% of total import value, while a substantial 50.2% came from many other countries.

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

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