Unmanufactured tobacco and refuse market in Peru

Earlier Report Observations

From 2018 to 2019, unmanufactured tobacco production in Peru increased from 1 938 to 2 045 t, supported by a rise in exports to 346 t. During this period, the government raised the selective consumption tax (ISC) on tobacco products, aiming to cover public health costs, which alongside growing cigarette smuggling from Paraguay, began altering the legal market structure. In 2020, production fell to 1 747 t.

After 2020, production recovered to 2 052 t in 2021 and remained around 2 060 t through 2023. This stability occurred despite the rapid emergence of the e‑cigarette segment, which grew by over 100% in 2022 and initially operated without specific regulation. At the same time, Parliament approved Law 32159 and related measures that tightened controls on tobacco, nicotine and vaping products, including a total advertising ban, larger health warnings and sales restrictions to minors. These regulatory steps aimed to curb consumption but did not prevent steady output of unmanufactured tobacco, partly because export volumes held firm, reaching 355 t in 2023.

In 2023‑2024, the regulatory environment continued to evolve with further updates to the ISC tax and the introduction of a new tobacco‑control law that imposed stricter rules on consumption, advertising and sales, including heated tobacco products. The illicit cigarette market, estimated to account for more than half of the cigarette trade, remained a significant feature of the sector. Nevertheless, unmanufactured tobacco production stayed resilient at 2 067 t in 2023.

Production unmanufactured tobacco and refuse in Peru

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

In 2019, Peru's production of unmanufactured tobacco and refuse saw its largest increase at 5.5%. However, by 2020, production had fallen to 1 747 tonnes, marking a 14.6% decrease from the previous year. Over the entire 2017-2020 period, production declined by 14.9%, with an average annual decrease of 5.3%.

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

In value, 2017-2020, K $ US

The value of unmanufactured tobacco and refuse production in Peru continued to decline for the third consecutive year. In 2020, output was valued at 13 861 thousand US dollars, representing a 21.2% drop from 2019. From 2017 to 2020, production value decreased by 32.8%, which translates to an average annual decline of 12.4%.

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

Exports unmanufactured tobacco and refuse from Peru

Exports in kind, t

Peru's exports of unmanufactured tobacco and refuse in kind reached 199.7 tonnes in 2020, showing a sharp year-on-year decrease of 42.3%. The largest increase occurred in 2019 at 28.7%. Over the 2017-2020 period, exports fell by 45.4%, with an average annual decline of 18.3%.

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

From 2017 to 2020, Italy dominated Peru's exports of unmanufactured tobacco and refuse in kind, accounting for 88.1% of total flows. The remaining share was distributed among other trading partners.

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

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

Exports in value, K $ US

In 2020, Peru's cross-border shipments of unmanufactured tobacco and refuse in value terms amounted to 1 584 thousand US dollars, a 46.8% decrease from 2019. The largest increase was recorded in 2019 at 6.5%. Over the 2017-2020 period, exports declined by 56.9%, with an average annual decrease of 24.4%.

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

Between 2017 and 2020, Italy consistently represented 82.9% of Peru's total exports in value terms, indicating a high concentration on this market. The remainder was shared among other countries.

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

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

Imports unmanufactured tobacco and refuse to Peru

Imports in kind, t

Peru's imports of unmanufactured tobacco and refuse in kind showed significant fluctuations from 2017 to 2020. The lowest point was in 2018 at 0.2 tonnes, with the largest decline that year of 99.5%. In 2019, imports surged by 9 226.8%, the largest increase in the period. By 2020, imports stood at approximately 11.2 tonnes, a 35.8% decrease from the previous year. The amplitude between the peak in 2017 and trough in 2018 was 221-fold.

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

Throughout 2017-2020, Italy and Nicaragua together accounted for 99.3% of Peru's total imports of unmanufactured tobacco and refuse in kind. Other destinations contributed smaller individual shares to the remainder.

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

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

Imports in value, K $ US

Peru's imports of unmanufactured tobacco and refuse in value terms experienced notable fluctuations from 2017 to 2020. The minimum value was recorded in 2018 at 4 thousand US dollars, with the largest decline that year of 96.1%. In 2019, imports increased by 280.4%, the largest rise in the period. By 2020, imports were approximately 9 thousand US dollars, 39.7% lower than the prior year. The gap between the peak in 2017 and trough in 2018 was 26-fold.

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

Over the 2017-2020 period, Italy was the dominant source for Peru's imports of unmanufactured tobacco and refuse in value terms, accounting for 77.2% of total flows. Other countries collectively made up the remaining share.

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

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