In this article, we are going to discuss the 20 countries that export the most tobacco in the world. You can skip our detailed analysis of the global tobacco market, the most popular cigarette brand in the world, and the various sustainability initiatives taken by some major players in the tobacco industry, and go directly to the 5 Countries that Export the Most Tobacco in the World.
Tobacco was first used by the people of pre-Columbian Americas. Archeological studies suggest that the Maya people of Central America started using tobacco leaves as far back as the 1st century BC, mainly for smoking in sacred and religious ceremonies. By the time Columbus arrived in the New World in 1492, the Native Americans were already cultivating and smoking tobacco in pipes, cigars, and snuff.
Although Cristopher Columbus brought with him a few tobacco leaves and seeds back to Europe, most Europeans didn’t get their first taste of the plant until the mid-16th century, when adventurers and diplomats like France’s Jean Nicot – for whom nicotine is named – began to popularize its use. Tobacco was introduced to France in 1556, Portugal in 1558, Spain in 1559, and finally England in 1565. By the early 17th century, smoking was common in all of Europe’s maritime nations, and their colonial empires soon carried tobacco all over the world.
Global Tobacco Market:
According to Research and Markets, the global tobacco market is expected to reach $1.049 trillion by 2030, with a CAGR of 2.5% from 2024 to 2030. The market is fuelled by a growing demand from developing nations, coupled with the rising proliferation of next-generation products (NGPs) across the globe. The high marketing expenditure and discounting of products undertaken by major tobacco companies is also adding to the growth of the industry.
While tobacco consumption is leveling off and even decreasing in some countries, the number of people smoking is still increasing globally, and smokers are smoking more than before. An estimated 1.3 billion people worldwide use tobacco products, 80% of whom are in low- and middle-income countries.
With an annual consumption of over 2 million tons, China is the Country with the Highest Tobacco Consumption in the world.
Most Popular Cigarette Brand:
Marlboro, produced by Philip Morris International, is the No. 1 Cigarette Brand in the World. Marlboro Gold Shorts and Marlboro Gold 100’s have also been known to be the Best Cigarettes for Women, meanwhile, the Marlboro Light brand has been placed among the Best Cigarettes for New Smokers.
Sustainability in the Tobacco Industry:
The modern consumer has become increasingly aware of the climate emergency we unfortunately find ourselves in, and actively seeks out sustainable brands, even if it means paying extra. So, as tobacco manufacturers find themselves in an increasingly competitive market, committing psychologically and economically to reducing their impact on the planet may also be the only means to make their businesses sustainable in the long run.
With a presence in over 180 markets, Philip Morris International Inc. (NYSE:PM) is one of the Largest Tobacco Companies in the World by Market Cap. As part of its harm reduction strategy, the industry giant is investing not only to be a predominantly smoke-free company, but is also trying actively to reduce the environmental impact of its operations. In 2021, Philip Morris International Inc. (NYSE:PM) revealed its Low-Carbon Transition Plan, aiming for carbon neutrality in its direct operations (Scopes 1 and 2) by 2025, and net-zero across its entire value chain (Scopes 1,2, and 3) by 2040. The company is also making notable efforts to halt deforestation, aiming to achieve zero net deforestation in managed forests by 2030. As a result of such continuous efforts, Philip Morris International Inc. (NYSE:PM) has been a consistent name on CDP’s Climate A-List for the last ten years now, and it even made it to the Dow Jones Sustainability World Index for the first time this year.
Similarly, British American Tobacco p.l.c (NYSE:BTI) is also a leading multi-category consumer goods company that provides tobacco and nicotine products to millions of consumers around the world. The London-based company signed-up to the UN-backed Race to Zero campaign in 2021, aiming to halve carbon emissions by 2030 and achieve net zero carbon emissions by 2050. In 2022, 32.9% of British American Tobacco p.l.c (NYSE:BTI)’s global direct energy usage came from renewable sources, including biomass, and 39 of its operation sites were functioning on 100% renewable acquired electricity and 26 were even generating their own renewable energy on-site, preventing over 36,000 tons of carbon emissions annually.
British American Tobacco p.l.c (NYSE:BTI) is included among the Top High Dividend Stocks to Buy According to Hedge Funds.
With that said, here are the Top Tobacco Exporters in the World.
Methodology:
To collect data for this article, we have referred to the UN Comtrade Database, looking for the Largest Tobacco Exporting Countries in the World. The following countries have been ranked by the total dollar value of their exports of HS Code 2401 – Tobacco, unmanufactured; tobacco refuse – in 2022.
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20. North Macedonia
Tobacco Exports in 2022: $115,448,790
North Macedonia has a long tradition of cultivating and exporting oriental tobacco, mainly of the types Prilep, Jaka, and Basma. Due to the large number of families working in tobacco agriculture, it also receives the largest share of crop subsidies, comprising on average a quarter of total agricultural subsidies for the period 2008 – 2019.
19. Zambia
Tobacco Exports in 2022: $132,930,007
Tobacco farming is very widespread in Zambia, with an estimated 20,000 households across the country involved in the sector. The country’s tobacco exports have soared rapidly over the last few decades, from $1.4 million in 1995 to almost $133 million in 2022.
18. France
Tobacco Exports in 2022: $143,031,271
The area dedicated to tobacco cultivation in France has decreased swiftly over the last few years, from 3,149 hectares in 2016 to 1,205 hectares in 2021, mainly due to the phaseout of EU tobacco subsidies in 2006. However, several banks still continue to support the tobacco industry, investing $733 million in the business in November 2023 alone.
17. Mozambique
Tobacco Exports in 2022: $150,547,913
Tobacco cultivation has been considered a mainstay of Mozambique’s economy and the country exported $49.4 million of it in the first nine months of 2023, nearly 25% less than the previous year. Most of this tobacco is grown in the regions of Tete and Niassa, representing over 89% of the country’s total production.
16. Tanzania
Tobacco Exports in 2022: $178,523,613
Tobacco has been grown in Tanzania since the 1950s and is an important source of foreign exchange for the country. The East African country produced 125 million kg of tobacco in 2023 and for the first time, more than 50% of this produce was bought and sold abroad by local companies.
Tanzania sits among the Top 3 Countries that Sell the Most Tobacco in Africa.
15. Philippines
Tobacco Exports in 2022: $183,816,011
First introduced in the 1950’s, tobacco is widely grown in various provinces in the Philippines, with the industry supporting over 2 million jobs nationwide. The country exported 53% of its total tobacco produced in 2022, while 47% was supplied to local tobacco manufacturers.
14. Dominican Republic
Tobacco Exports in 2022: $187,320,997
Tobacco has been cultivated in the Dominican Republic for centuries and the country produces some meticulous tobacco strains, like Criollo, Piloto Cubano, and Olor Dominicano etc. DR is also world famous for its top quality cigars, putting it among the Countries that Produce the Best Tobacco in the World.
13. Greece
Tobacco Exports in 2022: $221,458,102
Tobacco is an important cash crop in Greece and the country is a major supplier of high quality oriental tobacco, as well as flue-cured Virginia, and some Burley. However, the sector faced major setbacks last year, mainly due to farmer retention and the adverse weather conditions.
Greece is included among the Countries that Export the Most Tobacco in Europe.
12. Belgium
Tobacco Exports in 2022: $241,250,308
Despite the EU’s push to decrease tobacco farming and fight cancer, the bloc continues to subsidize tobacco farmers with millions of euros through its Common Agricultural Policy. Illicit tobacco continues to be a big problem in Belgium, with almost 10% of the total cigarettes smoked in the country being illegal, costing the national exchequer over $270 million in customs duties and VAT in 2022.
11. Turkey
Tobacco Exports in 2022: $261,113,663
Tobacco was introduced to the Ottomans by the Spanish in the 17th century, and the country is now the world’s largest exporter of aromatic oriental tobacco – a small-leafed variety which is sun-cured. Turkish tobacco is especially favored by pipe enthusiasts for its mildness, lower carcinogens, and aromatic flavor.
10. Indonesia
Tobacco Exports in 2022: $266,025,607
Indonesia is renowned for its rich variety of leaf tobaccos. The country produced over 237,000 tonnes of raw tobacco in 2021, most of which came from just three provinces – East Java, Central Java, and West Nusa Tenggara.
With over 220,000 hectares dedicated to cultivating the cash crop, Indonesia is placed among the Top Tobacco Growing Countries in the World.
9. Argentina
Tobacco Exports in 2022: $268,491,792
Argentina stands among the Top Tobacco Producing Countries in South America, with the country producing 95.6 thousand tons in 2022, representing approximately 1.7% of the global production of tobacco of 5.8 million tons. Belgium, China, and Germany are among the main export markets for Argentinian tobacco.
8. Italy
Tobacco Exports in 2022: $337,301,267
With an annual production of 50 million kilograms, Italy is the Largest Producer of Leaf Tobacco in the EU. Most of this crop is cultivated in the regions of Campania, Umbria, Veneto, and Tuscany.
7. Germany
Tobacco Exports in 2022: $366,408,131
Tobacco farming was an important part of the German economy in the past, with thousands of farmers engaged in cultivating the crop in the 1950’s. Fast forward to today, and you’ll find less than 100 tobacco farmers in the entire country, mainly due to the phasing-out of the EU subsidies and over-regulation of the sector. The major part of German tobacco goes to the Middle East, where it is consumed in sheeshas.
Due to its minor local production, Germany has to resort to acquiring hundreds of millions of dollars worth of tobacco from abroad every year, putting it among the Top Tobacco Importing Countries.
6. Malawi
Tobacco Exports in 2022: $407,581,156
Tobacco is the backbone of the Malawian economy, historically generating about 70% of the country’s export revenue but now accounting for over 50%. In 2015, tobacco farming took up more than 5% of all of Malawi’s farming land – the highest percentage anywhere in the world at that time.
Malawi ranks 6th in our list of Top Tobacco Exporting Countries.
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Disclosure: None. 20 Countries that Export the Most Tobacco in the World is originally published on Insider Monkey.