Unmanufactured tobacco and refuse market in South Korea

Earlier Report Observations

From 2018 to 2021, the market volume for unmanufactured tobacco in South Korea experienced significant fluctuations. A decline in 2019 was primarily driven by the government's stringent tobacco control policies, including tax hikes and price increases aimed at reducing smoking prevalence among adults. The market rebounded in 2020 as the COVID-19 pandemic altered retail distribution patterns, boosting sales through convenience stores, while growing consumer interest in smokeless alternatives like nicotine pouches began to influence demand.

After another contraction in 2021, linked to a further recorded fall in the adult male smoking rate to 31.3%, the market volume grew in 2022 and 2023. This recovery coincided with the expanding commercial footprint of novel tobacco products, such as heated tobacco devices and nicotine pouches, which sustained demand for raw tobacco leaf. Major domestic firms like KT&G accelerated their global market entry and product development for these segments during this period.

Production unmanufactured tobacco and refuse in South Korea

In kind, 2017-2020, t

South Korea ranked 26th globally in unmanufactured tobacco and refuse production from 2017 to 2020.

Top producers of unmanufactured tobacco and refuse, 2017-2020

World map of production of unmanufactured tobacco and refuse, 2017-2020

Following a two-year decline, South Korea's production of unmanufactured tobacco and refuse increased in 2020, reaching 28 197 tonnes. This represented a 3.2% rise compared to the previous year. Over the 2017-2020 period, production decreased by 2.1%, averaging an annual decline of 0.7%. The lowest production level was recorded in 2019 at 27 322 tonnes, which saw the largest drop of 4.0%.

Annual dynamics of production in South Korea in kind, 2017-2020, t

In value, 2017-2020, M $ US

In 2020, the output of unmanufactured tobacco and refuse in South Korea was valued at 200.7 million US dollars, showing a moderate increase of 7.0% from 2019. From 2017 to 2020, production value grew by 24.5%, with an average annual growth rate of 7.6%. The largest decline occurred in 2019 at 3.2%, while the most significant increase was in 2018 at 20.3%.

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

Exports unmanufactured tobacco and refuse from South Korea

Exports in kind, t

After two consecutive years of decline, South Korea's exports of unmanufactured tobacco and refuse increased in 2020, reaching 1 786 tonnes. This marked a 1.7% gain over the previous year. Between 2017 and 2020, exports fell by 26.2%, averaging an annual decrease of 9.6%. The lowest export volume was in 2019 at 1 756 tonnes, which also experienced the largest decline of 26.5%.

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

From 2017 to 2020, Russia, Singapore, and Turkey were the primary markets for South Korea's unmanufactured tobacco and refuse exports by volume. Russia accounted for 38.4% of exports, Singapore for 15.2%, and Turkey for 14.8%. Together, these three countries represented 68.4% of total export flows.

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

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

Exports in value, M $ US

In 2020, South Korea's exports of unmanufactured tobacco and refuse were valued at 12.7 million US dollars, reflecting a modest year-over-year increase of 5.4%. Over the 2017-2020 period, export value decreased by 6.2%, with an average annual decline of 2.1%. The lowest value was recorded in 2019 at 12.1 million US dollars, while the highest was in 2018 at 16.3 million US dollars. The largest decline occurred in 2019 at 25.9%, and the most significant increase was in 2018 at 20.1%.

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

From 2017 to 2020, Russia, Turkey, and the Philippines were the top buyers of unmanufactured tobacco and refuse from South Korea by value. Russia led with 53.3% of export value, followed by Turkey at 17.0% and the Philippines at 10.5%. Combined, these three markets accounted for 80.8% of total export value.

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

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

Imports unmanufactured tobacco and refuse to South Korea

Imports in kind, t

Following a two-year drop, South Korea's imports of unmanufactured tobacco and refuse increased in 2020, reaching 52 772 tonnes. This represented an 11.7% rise compared to 2019. Over the 2017-2020 period, imports decreased by 12.2%, with a compound annual growth rate of -4.2%. The lowest import volume was in 2019 at 47 230 tonnes, while the largest decline occurred in 2018 at 12.4%.

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

Between 2017 and 2020, Brazil, India, and Tanzania were the key partners for South Korea's imports of unmanufactured tobacco and refuse by volume. Brazil accounted for 26.6% of imports, India for 16.8%, and Tanzania for 9.7%. Together, these three countries made up 53.1% of total import flows.

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

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

Imports in value, M $ US

After a two-year fall, South Korea's imports of unmanufactured tobacco and refuse increased in 2020, totaling 236.1 million US dollars. This was a modest rise of 6.9% compared to 2019. From 2017 to 2020, import value decreased by 16.3%, with a compound annual growth rate of -5.8%. The lowest value was recorded in 2019 at 220.8 million US dollars, and the largest decline occurred in 2018 at 18.5%.

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

In the 2017-2020 period, Brazil, India, and the United States were the main markets for South Korea's imports of unmanufactured tobacco and refuse by value. Brazil accounted for 26.4% of import value, India for 14.0%, and the United States for 13.3%. Collectively, these three countries represented 53.7% of total import flows.

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

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