Ecuador: Unmanufactured Tobacco Market 2024

Unmanufactured Tobacco Market Size in Ecuador

After three years of growth, the Ecuadorian unmanufactured tobacco market decreased by -33.2% to $X in 2022. In general, consumption, however, showed a buoyant increase. As a result, consumption attained the peak level of $X, and then shrank notably in the following year.

Unmanufactured Tobacco Production in Ecuador

In value terms, unmanufactured tobacco production stood at $X in 2022 estimated in export price. The total output value increased at an average annual rate of +1.5% 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 2018 with an increase of 51% against the previous year. As a result, production attained the peak level of $X. From 2019 to 2022, production growth remained at a somewhat lower figure.

In 2022, the average unmanufactured tobacco yield in Ecuador declined to X tons per ha, which is down by -7% on the previous year. In general, the yield recorded a perceptible curtailment. The pace of growth appeared the most rapid in 2017 when the yield increased by 31% against the previous year. As a result, the yield reached the peak level of X tons per ha. From 2018 to 2022, the growth of the average unmanufactured tobacco yield remained at a somewhat lower figure. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

In 2022, approx. X ha of tobacco (unmanufactured) were harvested in Ecuador; with a decrease of -14.6% compared with the year before. Over the period under review, the harvested area, however, posted a remarkable increase. The growth pace was the most rapid in 2020 with an increase of 76%. Over the period under review, the harvested area dedicated to unmanufactured tobacco production reached the peak figure at X ha in 2021, and then reduced in the following year.

Unmanufactured Tobacco Exports

Exports from Ecuador

In 2022, after two years of decline, there was significant growth in shipments abroad of tobacco (unmanufactured), when their volume increased by 6.4% to X tons. Over the period under review, exports, however, saw a perceptible decline. The growth pace was the most rapid in 2014 with an increase of 11%. The exports peaked at X tons in 2012; however, from 2013 to 2022, the exports stood at a somewhat lower figure.

In value terms, unmanufactured tobacco exports dropped to $X in 2022. Overall, total exports indicated noticeable growth from 2012 to 2022: its value increased at an average annual rate of +4.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +89.9% against 2013 indices. The pace of growth appeared the most rapid in 2014 when exports increased by 27%. Over the period under review, the exports attained the maximum at $X in 2021, and then fell in the following year.

Exports by Country

The Dominican Republic (X tons) was the main destination for unmanufactured tobacco exports from Ecuador, with a 38% share of total exports. Moreover, unmanufactured tobacco exports to the Dominican Republic exceeded the volume sent to the second major destination, Nicaragua (X tons), twofold. Costa Rica (X tons) ranked third in terms of total exports with a 12% share.

From 2012 to 2022, the average annual rate of growth in terms of volume to the Dominican Republic amounted to +4.7%. Exports to the other major destinations recorded the following average annual rates of exports growth: Nicaragua (-4.7% per year) and Costa Rica (+16.9% per year).

In value terms, the Dominican Republic ($X) remains the key foreign market for tobacco (unmanufactured) exports from Ecuador, comprising 55% of total exports. The second position in the ranking was held by Nicaragua ($X), with a 25% share of total exports. It was followed by Indonesia, with a 4.1% share.

From 2012 to 2022, the average annual rate of growth in terms of value to the Dominican Republic stood at +12.0%. Exports to the other major destinations recorded the following average annual rates of exports growth: Nicaragua (+4.0% per year) and Indonesia (+9.9% per year).

Export Prices by Country

In 2022, the average unmanufactured tobacco export price amounted to $X per ton, with a decrease of -12.1% against the previous year. Over the period under review, the export price, however, recorded resilient growth. The pace of growth was the most pronounced in 2021 an increase of 31% against the previous year. As a result, the export price reached the peak level of $X per ton, and then contracted in the following year.

There were significant differences in the average prices for the major external markets. In 2022, amid the top suppliers, the country with the highest price was Sri Lanka ($X per ton), while the average price for exports to Costa Rica ($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 the United States (+31.1%), while the prices for the other major destinations experienced more modest paces of growth.

Unmanufactured Tobacco Imports

Imports into Ecuador

In 2022, supplies from abroad of tobacco (unmanufactured) increased by 2.9% to X tons for the first time since 2012, thus ending a nine-year declining trend. Overall, imports, however, showed a abrupt decline. Imports peaked at X tons in 2012; however, from 2013 to 2022, imports failed to regain momentum.

In value terms, unmanufactured tobacco imports shrank slightly to $X in 2022. In general, imports, however, showed a deep setback. The pace of growth was the most pronounced in 2021 with an increase of 0.6% against the previous year. Imports peaked at $X in 2012; however, from 2013 to 2022, imports failed to regain momentum.

Imports by Country

In 2022, Colombia (X tons) constituted the largest supplier of unmanufactured tobacco to Ecuador, with a 49% share of total imports. Moreover, unmanufactured tobacco imports from Colombia exceeded the figures recorded by the second-largest supplier, Argentina (X tons), twofold. The third position in this ranking was held by Malawi (X tons), with a 14% share.

From 2012 to 2022, the average annual growth rate of volume from Colombia totaled -20.4%. The remaining supplying countries recorded the following average annual rates of imports growth: Argentina (-15.8% per year) and Malawi (-6.1% per year).

In value terms, the largest unmanufactured tobacco suppliers to Ecuador were Colombia ($X), Argentina ($X) and Malawi ($X), together accounting for 85% of total imports. Honduras, North Macedonia, Brazil and Mozambique lagged somewhat behind, together accounting for a further 14%.

Among the main suppliers, Honduras, with a CAGR of -7.3%, 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 a decline.

Import Prices by Country

In 2022, the average unmanufactured tobacco import price amounted to $X per ton, reducing by -3.1% against the previous year. In general, the import price, however, showed a relatively flat trend pattern. The growth pace was the most rapid in 2013 when the average import price increased by 30%. Over the period under review, average import prices hit record highs at $X per ton in 2014; however, from 2015 to 2022, import prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Honduras ($X per ton), while the price for Brazil ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United States (+16.5%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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