Manufactured Tobacco, Extracts And Essences Market

The article discusses the global market for manufactured tobacco, extracts and essences, forecasting an upward consumption trend with an anticipated CAGR of +1.4% for volume and +4.7% for value. The United States is the leading consumer and producer in this market. However, there was a significant decline in imports and exports in 2022 after multiple years of growth. Overall, the market has seen fluctuations in consumption, production, imports and exports over the years.

Market Forecast

Driven by increasing demand for manufactured tobacco, extracts and essences worldwide, the market is expected to continue an upward consumption trend over the next eight years. Market performance is forecast to accelerate, expanding with an anticipated CAGR of +1.4% for the period from 2022 to 2030, which is projected to bring the market volume to 1.4M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +4.7% for the period from 2022 to 2030, which is projected to bring the market value to $12.9B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Manufactured Tobacco, Extracts And Essences

In 2022, consumption of manufactured tobacco, extracts and essences decreased by -5.3% to 1.3M tons for the first time since 2017, thus ending a four-year rising trend. Overall, consumption, however, saw a relatively flat trend pattern. Global consumption peaked at 1.4M tons in 2021, and then declined in the following year.

The value of the market for manufactured tobacco, extracts and essences worldwide declined to $8.9B in 2022, falling by -14.1% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption, however, saw a relatively flat trend pattern. Over the period under review, the global market reached the peak level at $10.3B in 2021, and then fell in the following year.

Consumption By Country

The country with the largest volume of manufactured tobacco, extracts and essences consumption was the United States (895K tons), accounting for 70% of total volume. It was followed by Italy (28K tons), with a 2.2% share of total consumption. Poland (27K tons) ranked third in terms of total consumption with a 2.1% share.

In the United States, manufactured tobacco, extracts and essences consumption remained relatively stable over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of consumption growth: Italy (-2.7% per year) and Poland (+1.4% per year).

In value terms, the United States ($5.3B) led the market, alone. The second position in the ranking was held by Italy ($422M). It was followed by Poland.

From 2012 to 2022, the average annual growth rate of value in the United States was relatively modest. The remaining consuming countries recorded the following average annual rates of market growth: Italy (+2.2% per year) and Poland (+0.6% per year).

In 2022, the highest levels of manufactured tobacco, extracts and essences per capita consumption was registered in the United States (2,669 kg per 1000 persons), followed by Romania (1,169 kg per 1000 persons), Poland (718 kg per 1000 persons) and Italy (476 kg per 1000 persons), while the world average per capita consumption of manufactured tobacco, extracts and essences was estimated at 163 kg per 1000 persons.

From 2012 to 2022, the average annual rate of growth in terms of the manufactured tobacco, extracts and essences per capita consumption in the United States was relatively modest. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Romania (+15.1% per year) and Poland (+1.5% per year).

Production

World Production of Manufactured Tobacco, Extracts And Essences

In 2022, the amount of manufactured tobacco, extracts and essences produced worldwide reached 1.3M tons, approximately reflecting the previous year. In general, production continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2015 with an increase of 11% against the previous year. Over the period under review, global production hit record highs in 2022 and is likely to see steady growth in years to come.

In value terms, manufactured tobacco, extracts and essences production reached $9.3B in 2022 estimated in export price. The total output value increased at an average annual rate of +1.7% from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations throughout the analyzed period. The growth pace was the most rapid in 2018 when the production volume increased by 7.7% against the previous year. Global production peaked at $9.4B in 2020; however, from 2021 to 2022, production failed to regain momentum.

Production By Country

The United States (898K tons) remains the largest manufactured tobacco, extracts and essences producing country worldwide, accounting for 67% of total volume. Moreover, manufactured tobacco, extracts and essences production in the United States exceeded the figures recorded by the second-largest producer, France (66K tons), more than tenfold. India (63K tons) ranked third in terms of total production with a 4.7% share.

In the United States, manufactured tobacco, extracts and essences production remained relatively stable over the period from 2012-2022. The remaining producing countries recorded the following average annual rates of production growth: France (+0.6% per year) and India (+7.3% per year).

Imports

World Imports of Manufactured Tobacco, Extracts And Essences

In 2022, after four years of growth, there was significant decline in overseas purchases of manufactured tobacco, extracts and essences, when their volume decreased by -38.5% to 236K tons. Overall, imports saw a pronounced reduction. The most prominent rate of growth was recorded in 2018 with an increase of 22% against the previous year. Over the period under review, global imports hit record highs at 384K tons in 2021, and then reduced rapidly in the following year.

In value terms, manufactured tobacco, extracts and essences imports reduced markedly to $2.1B in 2022. In general, imports, however, showed a mild expansion. The pace of growth appeared the most rapid in 2018 when imports increased by 174%. Global imports peaked at $7.4B in 2021, and then declined rapidly in the following year.

Imports By Country

In 2022, Turkey (29K tons), Belgium (27K tons) and Poland (19K tons) was the largest importer of manufactured tobacco, extracts and essences in the world, committing 31% of total import. It was distantly followed by Germany (11K tons), comprising a 4.8% share of total imports. Serbia (10K tons), Romania (8.5K tons), Russia (7.4K tons), the Philippines (6.9K tons), Portugal (6.7K tons), Ukraine (6.3K tons), Afghanistan (6.2K tons), South Korea (6.1K tons) and Switzerland (5.3K tons) held a relatively small share of total imports.

From 2012 to 2022, the biggest increases were recorded for Serbia (with a CAGR of +20.9%), while purchases for the other global leaders experienced more modest paces of growth.

In value terms, the largest manufactured tobacco, extracts and essences importing markets worldwide were Turkey ($159M), Ukraine ($153M) and Poland ($101M), together accounting for 19% of global imports. Belgium, Germany, South Korea, Switzerland, Serbia, Russia, Romania, the Philippines, Portugal and Afghanistan lagged somewhat behind, together accounting for a further 25%.

Serbia, with a CAGR of +17.9%, recorded the highest growth rate of the value of imports, among the main importing countries over the period under review, while purchases for the other global leaders experienced more modest paces of growth.

Import Prices By Country

The average import price for manufactured tobacco, extracts and essences stood at $9,066 per ton in 2022, reducing by -52.9% against the previous year. Overall, the import price, however, posted measured growth. The pace of growth was the most pronounced in 2018 when the average import price increased by 124%. Global import price peaked at $19,243 per ton in 2021, and then fell rapidly in the following year.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was Ukraine ($24,279 per ton), while Belgium ($2,636 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Ukraine (+14.7%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Manufactured Tobacco, Extracts And Essences

In 2022, after six years of growth, there was significant decline in shipments abroad of manufactured tobacco, extracts and essences, when their volume decreased by -17.3% to 300K tons. The total export volume increased at an average annual rate of +1.4% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2021 when exports increased by 19%. As a result, the exports attained the peak of 363K tons, and then contracted notably in the following year.

In value terms, manufactured tobacco, extracts and essences exports dropped remarkably to $2.6B in 2022. Overall, exports, however, saw a temperate expansion. The pace of growth appeared the most rapid in 2019 with an increase of 47%. The global exports peaked at $6B in 2021, and then shrank rapidly in the following year.

Exports By Country

The biggest shipments were from India (53K tons), France (44K tons), the Netherlands (43K tons), Germany (33K tons), Russia (23K tons) and Belgium (22K tons), together amounting to 72% of total export. The following exporters - the Philippines (12K tons), Malaysia (10K tons), Italy (9.5K tons), the United States (6.3K tons) and South Korea (5.6K tons) - together made up 14% of total exports.

From 2012 to 2022, the biggest increases were recorded for Italy (with a CAGR of +105.9%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, the largest manufactured tobacco, extracts and essences supplying countries worldwide were Italy ($519M), the Netherlands ($283M) and India ($247M), together comprising 40% of global exports.

Italy, with a CAGR of +146.2%, recorded the highest rates of growth with regard to the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

The average export price for manufactured tobacco, extracts and essences stood at $8,681 per ton in 2022, waning by -47.6% against the previous year. Overall, the export price, however, saw notable growth. The pace of growth appeared the most rapid in 2019 an increase of 44%. The global export price peaked at $16,559 per ton in 2021, and then shrank notably in the following year.

Prices varied noticeably by country of origin: amid the top suppliers, the country with the highest price was Italy ($54,446 per ton), while Malaysia ($2,752 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Italy (+19.6%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform