Unmanufactured tobacco and refuse market in Nicaragua

Earlier Report Observations

Nicaragua's market for unmanufactured tobacco and refuse demonstrated considerable movement between 2018 and 2023. Starting at 7,830 t in 2018, supported by state technical assistance to small and medium producers and the country's established reputation for premium cigar tobacco from fertile volcanic soils, the market volume contracted to 7,154 t in 2019. A strong rebound followed, with the market reaching 9,846 t in 2020. This recovery was driven by persistent production advantages, including specific seed varieties and sustained international demand, particularly from the United States.

Market growth continued, rising to 10,036 t in 2021 and peaking at 10,996 t in 2022. The increase in 2022 coincided with a regulatory ban on the import, export, and commercialization of e-cigarettes and similar devices, a measure that likely redirected consumption toward traditional unmanufactured tobacco. In 2023, the market volume eased to 10,572 t, even as reported domestic production increased, reflecting shifts in import and export flows during the period.

Production unmanufactured tobacco and refuse in Nicaragua

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

Nicaragua's production of unmanufactured tobacco and refuse rebounded after two years of decline. In 2019, output hit its lowest point at 4 475 tonnes, marking a significant 22.9% drop. However, production surged in 2020 to 7 352 tonnes, representing a sharp 64.3% increase from the previous year. Over the 2017-2020 period, production grew by 24.7%, averaging an annual growth rate of 7.6%.

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

In value, 2017-2020, M $ US

The value of Nicaragua's unmanufactured tobacco and refuse production recovered following two years of contraction. In 2019, it reached its minimum at 64.1 million US dollars, declining by 28.7%. By 2020, production value had risen to 106.1 million US dollars, a substantial 65.5% increase year-over-year. From 2017 to 2020, the overall growth was 10.9%, with a compound annual growth rate of 3.5%.

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

Exports unmanufactured tobacco and refuse from Nicaragua

Exports in kind, t

Nicaragua's exports of unmanufactured tobacco and refuse declined for the second consecutive year. In 2020, exports totaled 1 718 tonnes, a moderate 3.6% decrease from 2019. The peak was recorded in 2018 at 1 810 tonnes, which saw a notable 29.9% increase. Over the 2017-2020 period, exports grew by 23.3%, with a compound annual growth rate of 7.2%.

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

From 2017 to 2020, Honduras and the Dominican Republic were the primary buyers of Nicaragua's unmanufactured tobacco and refuse, together accounting for 86.9% of total exports by volume. The remaining share was distributed among various other countries.

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

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

Exports in value, K $ US

Nicaragua's export value of unmanufactured tobacco and refuse fell for the second year in a row. In 2020, exports amounted to 24.8 million US dollars, a slight 2.9% decrease from 2019. The highest value was in 2018 at 28.1 million US dollars, which experienced a 24.1% increase, while 2019 saw the largest decline of 9.1%. Overall, from 2017 to 2020, exports increased by 9.6%, with a compound annual growth rate of 3.1%.

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

Between 2017 and 2020, Honduras and the Dominican Republic remained the key markets for Nicaragua's unmanufactured tobacco and refuse exports in value terms, jointly representing 82.4% of total export flows. Other partners accounted for the remainder.

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

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

Imports unmanufactured tobacco and refuse to Nicaragua

Imports in kind, t

Nicaragua's imports of unmanufactured tobacco and refuse decreased after two years of growth. In 2020, import volume was 4 212 tonnes, a limited 5.6% drop from 2019. The highest volume was in 2019 at 4 461 tonnes, which saw a 16.2% increase. Over the 2017-2020 period, imports rose by 16.7%, averaging an annual growth rate of 5.3%.

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

From 2017 to 2020, Ecuador, Indonesia, and Honduras were the leading suppliers of unmanufactured tobacco and refuse to Nicaragua by volume. Ecuador accounted for 39.4% of imports, Indonesia for 14.6%, and Honduras for 13.3%, together making up 67.3% of total import volume.

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

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

Imports in value, K $ US

Nicaragua's import value of unmanufactured tobacco and refuse declined after two years of gains. In 2020, imports totaled 90.1 million US dollars, remaining broadly stable compared to 2019. The peak was in 2019 at 90.6 million US dollars, which experienced an 18.2% increase. Over the 2017-2020 period, imports grew by 19.8%, with a compound annual growth rate of 6.2%.

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

Throughout 2017-2020, Ecuador, Honduras, and Mexico were the top sources for Nicaragua's unmanufactured tobacco and refuse imports in value terms. Ecuador led with 49.4%, followed by Honduras at 10.5%, and Mexico at 9.7%, collectively representing 69.6% of total import flows.

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

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