Unmanufactured tobacco and refuse market in Western Europe

Earlier Report Observations

The market for unmanufactured tobacco in Western Europe contracted from 274 thousand tons in 2018 to 234 thousand tons in 2023, with its value falling from 1 077 million US dollars to 869 million. The decline was most pronounced in 2021, followed by a recovery in the subsequent two years. This overall reduction coincided with a strategic shift by major global tobacco companies, who consolidated their operations and expanded into smoke-free product segments, diverting investment and consumer interest away from traditional leaf tobacco.

Specific regulatory and market changes further shaped this trend. Rapid increases in global tobacco yields exerted downward pressure on leaf prices, while several European countries raised excise taxes, affecting consumer costs. A significant driver of the market rebound in 2023 was the strengthening of anti-smuggling sanctions in Italy, which helped channel more activity into the legal market and increased recorded volumes.

Looking ahead, new regulations continued to reshape the landscape in 2024, including Italy's mandatory registration for tobacco and vape retail outlets and a ban on tobacco sales in supermarkets, alongside further excise hikes in the Netherlands. These measures are part of an ongoing trend of stricter market access rules and fiscal policies affecting the sector.

Production unmanufactured tobacco and refuse in Western Europe

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

Western Europe's production of unmanufactured tobacco and refuse has declined for the third year in a row. In 2020, the region produced 4,412 tonnes, marking a sharp 29.0% drop from 2019. Looking at the period from 2017 to 2020, production fell by 71.2%, which translates to an average annual decrease of 34.0%.

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

In value, 2017-2020, M $ US

The value of Western Europe's unmanufactured tobacco and refuse production has also decreased for the third consecutive year. In 2020, output was valued at $31.4 million, down 31.4% from the previous year. Between 2017 and 2020, production value declined by 71.1%, with an annualized rate of 33.9%.

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

Exports unmanufactured tobacco and refuse from Western Europe

Exports in kind, K t

Exports of unmanufactured tobacco and refuse from Western Europe have fallen for the third year in a row. In 2020, exports totaled 76,500 tonnes, a significant 10.4% decrease compared to 2019. Over the 2017-2020 period, exports dropped by 44.5%, averaging an annual decline of 17.8%.

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

From 2017 to 2020, Western Europe's unmanufactured tobacco and refuse exports reached many different markets. Even the top destinations—Poland, Switzerland, and Côte d'Ivoire—combined accounted for just 27.1% of total exports in volume, highlighting a diverse export base.

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

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

Exports in value, M $ US

The value of unmanufactured tobacco and refuse exports from Western Europe declined for the third consecutive year. In 2020, exports reached $545 million, down 13.6% from 2019. Between 2017 and 2020, export value fell by 44.3%, with an annualized rate of 17.7%.

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

Between 2017 and 2020, the largest buyers of unmanufactured tobacco and refuse from Western Europe in value terms were Côte d'Ivoire (13.4% of exports), Poland (10.0%), and Switzerland (8.8%). However, together they represented only 32.2% of total export value, indicating a broadly diversified partner base.

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

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

Imports unmanufactured tobacco and refuse to Western Europe

Imports in kind, K t

Imports of unmanufactured tobacco and refuse into Western Europe declined for the second consecutive year. In 2020, imports totaled 353,000 tonnes, a 2.5% decrease from 2019. Over the 2017-2020 period, imports fell by 8.2%, with an average annual decline of 2.8%. The peak was in 2018 at 362,300 tonnes, followed by the largest drop of 18.8% in 2019, while the biggest increase of 16.0% occurred in 2018.

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

The import structure for unmanufactured tobacco and refuse in Western Europe from 2017 to 2020 was diversified. Brazil (17.8% of imports in volume), Malawi (10.0%), and the United States (7.4%) together accounted for only 35.1% of total flows, with no single country holding a clearly dominant position.

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

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

Imports in value, M $ US

The value of unmanufactured tobacco and refuse imports into Western Europe fell for the second year in a row. In 2020, imports amounted to $1,352 million, a 10.3% decrease from 2019. Between 2017 and 2020, import value dropped by 15.4%, with an annualized rate of 5.4%. The highest value was recorded in 2018 at $1,688 million, followed by the largest decline of 10.7% in 2019, while the biggest increase of 5.6% also occurred in 2018.

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

The partner structure for imports in value terms from 2017 to 2020 remained fragmented. Brazil (16.8% of import value), the United States (9.7%), and Malawi (8.9%) together made up only 35.4% of total flows, with no single country exceeding a dominant share.

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

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