Unmanufactured tobacco and refuse market in Panama

Earlier Report Observations

The market for unmanufactured tobacco in Panama expanded gradually from 2 596 tons in 2018 to 2 661 tons in 2021, while domestic production remained stable above 2 700 tons. This period was marked by a reported prevalence of illicit cigarette trade, with a 2021 study indicating 87.9% of consumed cigarettes were smuggled, primarily Asian brands, which could influence demand for legally produced tobacco.

Following the peak, the market volume contracted to 2 511 tons in 2022 and 2 469 tons in 2023. This decline aligned with regulatory actions such as the 2022 Law 315 banning e-cigarettes and intensified enforcement against illicit trade under international protocols. Record cigarette seizures reported in 2024 highlighted persistent smuggling pressures, likely reducing domestic demand for legal tobacco inputs, even as exports of unmanufactured tobacco grew notably to 285 tons in 2023.

Production unmanufactured tobacco and refuse in Panama

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

Panama's production of unmanufactured tobacco and refuse increased for the second consecutive year. In 2020, the country produced 2 728 tonnes, showing minimal change compared to 2019. The lowest production volume was recorded in 2018 at 2 717 tonnes. The largest decline occurred in 2018 with a 0.2% decrease, while the largest increase was in 2019 with a 0.2% rise.

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

In value, 2017-2020, K $ US

After two years of growth, Panama's production of unmanufactured tobacco and refuse declined in value terms. In 2020, the output was valued at 19 041 thousand US dollars, down 3.1% from 2019. The highest value was recorded in 2019 at 19 649 thousand US dollars, which also saw the largest increase of 1.7%.

Annual dynamics of production in Panama in value, 2017-2020, K $ US

Exports unmanufactured tobacco and refuse from Panama

Exports in kind, t

In 2020, Panama's export volume of unmanufactured tobacco and refuse totaled 122.5 tonnes, representing a 13.3% decrease from the previous year. Between 2017 and 2020, exports fell by 33.6%, equivalent to an annualized decline of 12.8%. The largest drop occurred in 2018 with a 30.8% decrease, while the largest increase was in 2019 with a 10.7% rise.

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

From 2017 to 2020, Honduras remained the dominant and nearly exclusive destination for Panama's exports of unmanufactured tobacco and refuse in kind, accounting for 90.7% of the total.

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

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

Exports in value, K $ US

In 2020, Panama's export value of unmanufactured tobacco and refuse reached 855 thousand US dollars, marking a 16.2% decline compared to 2019. Over the 2017-2020 period, exports decreased by 34.3%, with a compound annual growth rate (CAGR) of -13.0%. The largest decline was in 2018 with a 30.2% drop, while the largest increase was in 2019 with a 12.4% rise.

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

Between 2017 and 2020, Honduras served as the primary market for Panama's unmanufactured tobacco and refuse exports in value terms, consistently absorbing 90.3% of the total.

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

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

Imports unmanufactured tobacco and refuse to Panama

Imports in kind, t

The market showed an unstable trend during this period. Imports reached their lowest point in 2018 at 7.1 tonnes and peaked in 2019 at 40.8 tonnes, representing a 5.7-fold difference. In 2020, Panama imported 8.4 tonnes of unmanufactured tobacco and refuse, down 79.8% from 2019. The largest increase occurred in 2019 with a 475.0% surge.

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

From 2017 to 2020, Nicaragua (33.1% of imports in kind), Spain (31.0%), and Turkey (10.5%) together accounted for 74.6% of Panama's total imports of unmanufactured tobacco and refuse in kind, making them the main sources.

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

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

Imports in value, K $ US

The market exhibited volatility throughout the timeframe. Imports bottomed in 2018 at 38 thousand US dollars and peaked in 2017, with a 4.7-fold gap between these years. In 2020, Panama's imports of unmanufactured tobacco and refuse amounted to 43 thousand US dollars, down 53.3% from the previous year. The largest decline was in 2018 with a 78.9% drop, while the largest increase was in 2019 with a 142.0% rise.

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

During 2017-2020, Nicaragua (43.7% of imports in value terms), Turkey (14.3%), and Free Zones (10.0%) accounted for the largest shares of Panama's imports of unmanufactured tobacco and refuse in value terms, together comprising 68.0% of total flows.

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

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