United Kingdom: Tobacco Market 2025

Tobacco Market Size in the UK

In 2021, the UK tobacco market was finally on the rise to reach $X for the first time since 2018, thus ending a two-year declining trend. Overall, consumption, however, recorded a pronounced downturn. Over the period under review, the market attained the peak level at $X in 2013; however, from 2014 to 2021, consumption failed to regain momentum.

Tobacco Production in the UK

In value terms, tobacco production dropped to $X in 2021 estimated in export price. Over the period under review, production recorded a strong expansion. The pace of growth appeared the most rapid in 2017 with an increase of 530%. As a result, production attained the peak level of $X. From 2018 to 2021, production growth remained at a lower figure.

Tobacco Exports

Exports from the UK

After four years of decline, overseas shipments of tobacco (smoking tobacco, chewing tobacco, snuff) increased by 11% to X tons in 2021. Overall, exports, however, faced a sharp reduction. The most prominent rate of growth was recorded in 2016 with an increase of 23%. As a result, the exports reached the peak of X tons. From 2017 to 2021, the growth of the exports failed to regain momentum.

In value terms, tobacco exports soared to $X in 2021. Over the period under review, exports, however, saw a sharp decline. Over the period under review, the exports hit record highs at $X in 2016; however, from 2017 to 2021, the exports failed to regain momentum.

Exports by Country

The United States (X tons) was the main destination for tobacco exports from the UK, with a 33% share of total exports. Moreover, tobacco exports to the United States exceeded the volume sent to the second major destination, the United Arab Emirates (X tons), twofold. Switzerland (X tons) ranked third in terms of total exports with an 11% share.

From 2012 to 2021, the average annual growth rate of volume to the United States amounted to +22.0%. Exports to the other major destinations recorded the following average annual rates of exports growth: the United Arab Emirates (+95.8% per year) and Switzerland (-35.0% per year).

In value terms, the United States ($X) remains the key foreign market for tobacco (smoking tobacco, chewing tobacco, snuff) exports from the UK, comprising 30% of total exports. The second position in the ranking was held by the United Arab Emirates ($X), with a 15% share of total exports. It was followed by Switzerland, with a 14% share.

From 2012 to 2021, the average annual rate of growth in terms of value to the United States totaled +13.4%. Exports to the other major destinations recorded the following average annual rates of exports growth: the United Arab Emirates (+139.6% per year) and Switzerland (-25.5% per year).

Export Prices by Country

The average tobacco export price stood at $X per ton in 2021, growing by 9.2% against the previous year. Overall, the export price saw a resilient increase. The most prominent rate of growth was recorded in 2020 an increase of 163% against the previous year. Over the period under review, the average export prices attained the maximum in 2021 and is likely to continue growth in years to come.

There were significant differences in the average prices for the major external markets. In 2021, amid the top suppliers, the country with the highest price was France ($X per ton), while the average price for exports to Poland ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to the United Arab Emirates (+22.4%), while the prices for the other major destinations experienced more modest paces of growth.

Tobacco Imports

Imports into the UK

In 2021, the amount of tobacco (smoking tobacco, chewing tobacco, snuff) imported into the UK contracted sharply to X tons, waning by -48.4% on 2020 figures. In general, imports, however, saw pronounced growth. The growth pace was the most rapid in 2017 when imports increased by 205% against the previous year. Over the period under review, imports attained the maximum at X tons in 2020, and then fell dramatically in the following year.

In value terms, tobacco imports dropped markedly to $X in 2021. Over the period under review, imports, however, recorded a measured increase. The growth pace was the most rapid in 2017 when imports increased by 200%. As a result, imports reached the peak of $X. From 2018 to 2021, the growth of imports remained at a somewhat lower figure.

Imports by Country

Poland (X tons), the Netherlands (X tons) and Romania (X tons) were the main suppliers of tobacco imports to the UK, together accounting for 89% of total imports.

From 2012 to 2021, the biggest increases were recorded for Poland (with a CAGR of +114.9%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, Poland ($X), the Netherlands ($X) and Romania ($X) appeared to be the largest tobacco suppliers to the UK, with a combined 87% share of total imports.

Among the main suppliers, Poland, with a CAGR of +117.1%, recorded the highest growth rate of the value of imports, over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the average tobacco import price amounted to $X per ton, which is down by -1.5% against the previous year. In general, the import price, however, continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in 2016 when the average import price increased by 64% against the previous year. As a result, import price attained the peak level of $X per ton. From 2017 to 2021, the average import prices failed to regain momentum.

There were significant differences in the average prices amongst the major supplying countries. In 2021, amid the top importers, the country with the highest price was Belgium ($X per ton), while the price for Pakistan ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Belgium (+24.0%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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