Azerbaijan: Unmanufactured Tobacco Market 2024

Unmanufactured Tobacco Market Size in Azerbaijan

The Azerbaijani unmanufactured tobacco market fell rapidly to $X in 2022, waning by -24.2% against the previous year. In general, consumption saw a deep downturn. Unmanufactured tobacco consumption peaked at $X in 2020; however, from 2021 to 2022, consumption failed to regain momentum.

Unmanufactured Tobacco Production in Azerbaijan

In value terms, unmanufactured tobacco production expanded sharply to $X in 2022 estimated in export price. Overall, the total production indicated noticeable growth from 2012 to 2022: its value increased at an average annual rate of +2.6% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +27.8% against 2019 indices. The pace of growth appeared the most rapid in 2020 when the production volume increased by 37% against the previous year. Unmanufactured tobacco production peaked at $X in 2018; however, from 2019 to 2022, production failed to regain momentum.

In 2022, the average yield of tobacco (unmanufactured) in Azerbaijan amounted to X tons per ha, increasing by 2% against 2021. Over the period under review, the yield, however, showed a perceptible reduction. The growth pace was the most rapid in 2018 when the yield increased by 15% against the previous year. Over the period under review, the average unmanufactured tobacco yield attained the maximum level at X tons per ha in 2013; however, from 2014 to 2022, the yield failed to regain momentum. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

The unmanufactured tobacco harvested area in Azerbaijan rose modestly to X ha in 2022, picking up by 2.1% compared with the year before. Overall, the harvested area showed a prominent increase. The growth pace was the most rapid in 2016 when the harvested area increased by 73%. Over the period under review, the harvested area dedicated to unmanufactured tobacco production reached the peak figure at X ha in 2018; however, from 2019 to 2022, the harvested area remained at a lower figure.

Unmanufactured Tobacco Exports

Exports from Azerbaijan

In 2022, exports of tobacco (unmanufactured) from Azerbaijan skyrocketed to X tons, increasing by 31% against the previous year. Over the period under review, exports recorded a resilient expansion. The growth pace was the most rapid in 2017 with an increase of 107% against the previous year. Over the period under review, the exports reached the peak figure in 2022 and are expected to retain growth in the near future.

In value terms, unmanufactured tobacco exports soared to $X in 2022. In general, exports enjoyed strong growth. The growth pace was the most rapid in 2017 with an increase of 79% against the previous year. Over the period under review, the exports hit record highs in 2022 and are expected to retain growth in years to come.

Exports by Country

Russia (X tons), Belarus (X tons) and Turkey (X tons) were the main destinations of unmanufactured tobacco exports from Azerbaijan, with a combined 99% share of total exports.

From 2012 to 2022, the biggest increases were recorded for Turkey (with a CAGR of +310.1%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, Belarus ($X), Russia ($X) and Turkey ($X) appeared to be the largest markets for unmanufactured tobacco exported from Azerbaijan worldwide, with a combined 99% share of total exports.

Turkey, with a CAGR of +446.8%, recorded the highest growth rate of the value of exports, among the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2022, the average unmanufactured tobacco export price amounted to $X per ton, picking up by 9.9% against the previous year. Overall, the export price saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2020 when the average export price increased by 19% against the previous year. Over the period under review, the average export prices attained the maximum at $X per ton in 2015; however, from 2016 to 2022, the export prices stood at a somewhat lower figure.

There were significant differences in the average prices for the major export markets. In 2022, amid the top suppliers, the country with the highest price was Belarus ($X per ton), while the average price for exports to Russia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Turkey (+33.3%), while the prices for the other major destinations experienced a decline.

Unmanufactured Tobacco Imports

Imports into Azerbaijan

In 2022, overseas purchases of tobacco (unmanufactured) were finally on the rise to reach X tons for the first time since 2019, thus ending a two-year declining trend. In general, imports continue to indicate notable growth. The pace of growth appeared the most rapid in 2017 with an increase of 148%. Imports peaked at X tons in 2019; however, from 2020 to 2022, imports failed to regain momentum.

In value terms, unmanufactured tobacco imports soared to $X in 2022. Over the period under review, imports posted slight growth. The most prominent rate of growth was recorded in 2017 when imports increased by 384% against the previous year. Over the period under review, imports reached the peak figure at $X in 2019; however, from 2020 to 2022, imports failed to regain momentum.

Imports by Country

In 2022, Iran (X tons) constituted the largest supplier of unmanufactured tobacco to Azerbaijan, accounting for a 36% share of total imports. Moreover, unmanufactured tobacco imports from Iran exceeded the figures recorded by the second-largest supplier, Brazil (X tons), threefold. Zimbabwe (X tons) ranked third in terms of total imports with an 11% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Iran stood at +11.2%. The remaining supplying countries recorded the following average annual rates of imports growth: Brazil (-1.7% per year) and Zimbabwe (+17.5% per year).

In value terms, Brazil ($X), Zimbabwe ($X) and Iran ($X) constituted the largest unmanufactured tobacco suppliers to Azerbaijan, together accounting for 50% of total imports. Malawi, Tanzania, Italy, Thailand, Bulgaria, North Macedonia, Bangladesh, India and Argentina lagged somewhat behind, together accounting for a further 47%.

Among the main suppliers, Argentina, with a CAGR of +115.1%, recorded the highest rates of growth with regard to 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 2022, the average unmanufactured tobacco import price amounted to $X per ton, rising by 21% against the previous year. In general, the import price, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2015 an increase of 206% against the previous year. The import price peaked at $X per ton in 2020; however, from 2021 to 2022, import prices stood at a somewhat lower figure.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Bangladesh ($X per ton), while the price for Iran ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by India (+24.4%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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