Unmanufactured tobacco and refuse market in the Philippines

Earlier Report Observations

The market for unmanufactured tobacco and refuse in the Philippines exhibited considerable volatility from 2018 to 2023, with volume swinging from 73 228 tons in 2018 to a low of 56 122 tons in 2021 before rebounding to 79 272 tons in 2023. Early movements were influenced by the anticipation of excise tax increases under the Tobacco Tax Law (RA 11346) approved in 2019 and by supply-chain disruptions caused by the COVID-19 pandemic in 2020.

A sharp contraction occurred in 2021 following the implementation of the Tobacco Control Act (RA 9211) and the ban on unregistered novel tobacco products via Executive Order No. 106. The market then recovered strongly in 2023, propelled by a significant drop in exports that increased domestic availability and by reinforced regulations against illicit trade. Throughout the period, a steady decline in tobacco farmers due to fiscal pressures and the promotion of more efficient production technologies by the National Tobacco Administration also affected market dynamics.

Production unmanufactured tobacco and refuse in the Philippines

In kind, 2017-2020, t

Globally, the Philippines ranked as the 16th largest producer of unmanufactured tobacco and refuse from 2017 to 2020.

Top producers of unmanufactured tobacco and refuse, 2017-2020

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

Unmanufactured tobacco and refuse production in the Philippines rose for the second year in a row. In 2020, the country produced 52 435 tonnes, marking a 2.7% increase from 2019. Over the period from 2017 to 2020, production grew by 2.8%, averaging an annualized rate of 0.9%. The lowest output was recorded in 2018 at 50 381 tonnes, which also saw the largest decline of 1.3%.

Annual dynamics of production in the Philippines in kind, 2017-2020, t

Exports unmanufactured tobacco and refuse from the Philippines

Exports in kind, t

In 2020, the Philippines exported 33 721 tonnes of unmanufactured tobacco and refuse, a decrease of 19.0% compared to the previous year. From 2017 to 2020, exports fell by 45.6%, with an annualized decline of 18.4%. The sharpest drop occurred in 2018 at 41.7%, while the largest increase was in 2019 at 15.1%.

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

Between 2017 and 2020, the Philippines' exports in kind were distributed across various countries, with no single partner dominating. Zimbabwe accounted for 14.7% of exports, Indonesia for 12.8%, and South Korea for 9.6%, together making up 37.1% of total flows.

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

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

Exports in value, M $ US

After two years of growth, the Philippines' unmanufactured tobacco and refuse export volume declined. In 2020, exports were valued at 144.7 million US dollars, a significant contraction of 13.0% from 2019. Over the 2017-2020 period, exports increased by 33%, with a compound annual growth rate of 10.0%. The peak value was recorded in 2019 at 166.3 million US dollars, and the largest increase occurred in 2018 at 39.9%.

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

From 2017 to 2020, the Philippines traded unmanufactured tobacco and refuse with numerous countries. Even the top destinations—Indonesia, the Dominican Republic, and South Korea—collectively represented only 40.7% of total exports in value terms.

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

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

Imports unmanufactured tobacco and refuse to the Philippines

Imports in kind, t

Unmanufactured tobacco and refuse imports into the Philippines declined for the second consecutive year. In 2020, imports totaled 47 644 tonnes, reflecting a 12.0% drop from 2019. Over the 2017-2020 period, imports increased by 22.2%, with a compound annual growth rate of 6.9%. The highest volume was recorded in 2018 at 58 986 tonnes, which also saw the largest increase of 51.3%.

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

From 2017 to 2020, India, Belgium, and China remained the primary suppliers of unmanufactured tobacco and refuse to the Philippines. India contributed 17.7% of imports in kind, Belgium 17.5%, and China 15.0%, together accounting for 50.2% of total imports.

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

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

Imports in value, M $ US

In 2020, the Philippines' unmanufactured tobacco and refuse imports reached 240.0 million US dollars, indicating a 4.3% rise from the previous year. Between 2017 and 2020, imports grew by 36%, with an annualized rate of 10.8%. The maximum value was recorded in 2018 at 248.1 million US dollars, with the largest increase that year at 40.6% and the largest decline in 2019 at 7.3%.

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

Over the 2017-2020 period, imports of unmanufactured tobacco and refuse to the Philippines in value terms relied on a diverse range of partner countries. Belgium accounted for 21.0% of imports, India for 12.3%, and China for 11.0%, together making up 44.3% of total flows.

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

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