Unmanufactured tobacco and refuse market in Southern Europe

Earlier Report Observations

The market for unmanufactured tobacco and refuse in Southern Europe experienced significant fluctuations between 2018 and 2020. Volume expanded by over 30% to 107.9 thousand tons in 2019, before contracting by 20% to 86.3 thousand tons in 2020.

From 2021, the market saw a modest recovery followed by a sharp decline. The growth of the heat-not-burn segment, reaching about 10% of the Italian market in 2021, contributed to a slight increase in overall market volume to 88.7 thousand tons. However, in 2022, stringent environmental regulations, including extended producer responsibility for plastic filter waste, coupled with broader European policy efforts to reduce tobacco's environmental impact, coincided with a 29% drop in volume to 63.0 thousand tons. By 2023, continued innovation and the expansion of smoke-free products, which captured nearly 18% of the market in Italy, helped drive a rebound to 78.2 thousand tons.

Production unmanufactured tobacco and refuse in Southern Europe

In kind, 2017-2020, K t

Top producers of unmanufactured tobacco and refuse, 2017-2020

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

Southern Europe's production of unmanufactured tobacco and refuse has declined for the third year in a row. In 2020, the region produced 128.6 K t, which represents a 6.4% decrease compared to the previous year. Looking at the period from 2017 to 2020, production fell by 20.6%, averaging an annual decline of 7.4%.

Annual dynamics of production in Southern Europe in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Southern Europe's production of unmanufactured tobacco and refuse has continued to decline for the third consecutive year. In 2020, the output was valued at 665.6 M $ US, showing a moderate drop of 7.5% from 2019. Over the 2017-2020 period, production decreased by 15.3%, with an average annual rate of 5.4%.

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

Exports unmanufactured tobacco and refuse from Southern Europe

Exports in kind, K t

After two years of decline, exports of unmanufactured tobacco and refuse from Southern Europe saw an increase in 2020. Exports totaled 155.3 K t, marking a moderate rise of 3.5% compared to 2019. The lowest point was in 2019 at 150.1 K t, which also saw the largest decline of 12.8%. Overall, from 2017 to 2020, exports decreased by 10.6%, averaging a 3.6% annual decline.

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

Between 2017 and 2020, unmanufactured tobacco and refuse from Southern Europe were exported to numerous countries. Even the top destinations—Belgium, Bulgaria, and the Netherlands—combined accounted for only 37.9% of total exports in volume.

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

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

Exports in value, M $ US

In 2020, exports of unmanufactured tobacco and refuse from Southern Europe reached 804.0 M $ US, up 2.2% from 2019. The highest value was recorded in 2018 at 876.1 M $ US, with a 3.9% increase that year. The lowest was in 2019 at 786.7 M $ US, which saw the largest decline of 10.2%. Over the 2017-2020 period, exports decreased by 4.6%, with a compound annual growth rate of -1.6%.

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

From 2017 to 2020, Belgium, Bulgaria, and the Netherlands were significant buyers of unmanufactured tobacco and refuse from Southern Europe, accounting for 27.4%, 7.3%, and 5.5% of exports in value, respectively. However, their combined share was only 40.3%, with the remaining 59.7% spread across many other trading partners.

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

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

Imports unmanufactured tobacco and refuse to Southern Europe

Imports in kind, K t

In 2020, imports of unmanufactured tobacco and refuse into Southern Europe amounted to 113.0 K t, down 6.3% from 2019. The lowest volume was in 2018 at 111.6 K t, while the highest was in 2019 at 120.7 K t, which also saw the largest increase of 8.1%. Between 2017 and 2020, imports decreased by 2.4%, averaging a 0.8% annual decline.

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

During 2017-2020, imports of unmanufactured tobacco and refuse to Southern Europe came from many countries. The largest sources—Belgium, Brazil, and Poland—together made up only 33.1% of total imports in volume.

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

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

Imports in value, M $ US

Southern Europe imported 558.6 M $ US worth of unmanufactured tobacco and refuse in 2020, a 5.4% decrease from the previous year. The highest value was in 2019 at 590.3 M $ US, which also recorded the largest increase of 4.2%. Over the 2017-2020 period, imports fell by 3.2%, with a compound annual growth rate of -1.1%.

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

Data from 2017 to 2020 show that imports of unmanufactured tobacco and refuse into Southern Europe were not heavily concentrated. Belgium, Brazil, and the United States accounted for 19.8%, 9.4%, and 5.5% of imports in value, respectively, but together they represented only 34.7% of total flows.

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

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