GCC: Unmanufactured Tobacco Market 2024

Unmanufactured Tobacco Market Size in GCC

In 2022, the GCC unmanufactured tobacco market decreased by -7.6% to $X for the first time since 2018, thus ending a three-year rising trend. Overall, consumption, however, enjoyed strong growth. Over the period under review, the market reached the maximum level at $X in 2021, and then dropped in the following year.

Unmanufactured Tobacco Production in GCC

In value terms, unmanufactured tobacco production skyrocketed to $X in 2022 estimated in export price. Over the period under review, production enjoyed a remarkable increase. The pace of growth appeared the most rapid in 2020 with an increase of 205%. As a result, production attained the peak level of $X. From 2021 to 2022, production growth remained at a lower figure.

The countries with the highest volumes of production in 2022 were Saudi Arabia (X tons), Oman (X tons) and the United Arab Emirates (X tons), with a combined 93% share of total production.

From 2012 to 2022, the biggest increases were recorded for Saudi Arabia (with a CAGR of +316.8%), while production for the other leaders experienced more modest paces of growth.

The average unmanufactured tobacco yield surged to X tons per ha in 2022, with an increase of 19% against the year before. In general, the yield continues to indicate a resilient increase. The most prominent rate of growth was recorded in 2020 when the yield increased by 126% against the previous year. As a result, the yield reached the peak level of X tons per ha. From 2021 to 2022, the growth of the unmanufactured tobacco 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.

In 2022, approx. X ha of tobacco (unmanufactured) were harvested in GCC; therefore, remained relatively stable against 2021. Over the period under review, the harvested area, however, showed a relatively flat trend pattern. The pace of growth was the most pronounced in 2018 when the harvested area increased by 0.7%. The level of harvested area peaked at X ha in 2013; however, from 2014 to 2022, the harvested area stood at a somewhat lower figure.

Unmanufactured Tobacco Exports

Exports in GCC

In 2022, after two years of growth, there was significant decline in shipments abroad of tobacco (unmanufactured), when their volume decreased by -22.1% to X tons. Over the period under review, exports saw a abrupt shrinkage. The pace of growth was the most pronounced in 2021 with an increase of 84% against the previous year. The volume of export 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 contracted markedly to $X in 2022. In general, exports continue to indicate a noticeable decrease. The pace of growth appeared the most rapid in 2021 when exports increased by 100% against the previous year. Over the period under review, the exports attained the peak figure at $X in 2015; however, from 2016 to 2022, the exports remained at a lower figure.

Exports by Country

The United Arab Emirates represented the key exporting country with an export of about X tons, which recorded 73% of total exports. Oman (X tons) held a 20% share (based on physical terms) of total exports, which put it in second place, followed by Bahrain (5.7%). Saudi Arabia (X tons) followed a long way behind the leaders.

From 2012 to 2022, average annual rates of growth with regard to unmanufactured tobacco exports from the United Arab Emirates stood at -12.5%. At the same time, Saudi Arabia (+11.0%), Bahrain (+6.8%) and Oman (+5.7%) displayed positive paces of growth. Moreover, Saudi Arabia emerged as the fastest-growing exporter exported in GCC, with a CAGR of +11.0% from 2012-2022. Oman (+16 p.p.) and Bahrain (+4.7 p.p.) significantly strengthened its position in terms of the total exports, while the United Arab Emirates saw its share reduced by -22.3% from 2012 to 2022, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United Arab Emirates ($X) remains the largest unmanufactured tobacco supplier in GCC, comprising 67% of total exports. The second position in the ranking was held by Oman ($X), with a 23% share of total exports. It was followed by Bahrain, with a 6.3% share.

In the United Arab Emirates, unmanufactured tobacco exports shrank by an average annual rate of -7.2% over the period from 2012-2022. The remaining exporting countries recorded the following average annual rates of exports growth: Oman (+9.5% per year) and Bahrain (+11.1% per year).

Export Prices by Country

In 2022, the export price in GCC amounted to $X per ton, dropping by -3.6% against the previous year. Over the period under review, the export price, however, enjoyed a prominent expansion. The most prominent rate of growth was recorded in 2015 an increase of 74%. Over the period under review, the export prices attained the peak figure at $X per ton in 2016; however, from 2017 to 2022, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was Saudi Arabia ($X per ton), while the United Arab Emirates ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Saudi Arabia (+10.7%), while the other leaders experienced more modest paces of growth.

Unmanufactured Tobacco Imports

Imports in GCC

After seven years of growth, purchases abroad of tobacco (unmanufactured) decreased by -5.7% to X tons in 2022. Overall, imports, however, saw prominent growth. The most prominent rate of growth was recorded in 2013 when imports increased by 71%. The volume of import peaked at X tons in 2021, and then reduced in the following year.

In value terms, unmanufactured tobacco imports shrank to $X in 2022. In general, imports, however, posted strong growth. The most prominent rate of growth was recorded in 2013 with an increase of 102% against the previous year. Over the period under review, imports attained the maximum at $X in 2021, and then reduced in the following year.

Imports by Country

The purchases of the one major importers of tobacco (unmanufactured), namely the United Arab Emirates, represented more than two-thirds of total import.

The United Arab Emirates was also the fastest-growing in terms of the tobacco (unmanufactured) imports, with a CAGR of +9.8% from 2012 to 2022. The United Arab Emirates (+7.6 p.p.) significantly strengthened its position in terms of the total imports, while the shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the United Arab Emirates ($X) constitutes the largest market for imported tobacco (unmanufactured) in GCC.

From 2012 to 2022, the average annual growth rate of value in the United Arab Emirates stood at +10.1%.

Import Prices by Country

The import price in GCC stood at $X per ton in 2022, waning by -4.4% against the previous year. Overall, the import price, however, saw a relatively flat trend pattern. The pace of growth was the most pronounced in 2013 an increase of 18% against the previous year. As a result, import price attained the peak level of $X per ton. From 2014 to 2022, the import prices failed to regain momentum.

As there is only one major supplying country, the average price level is determined by prices for the United Arab Emirates.

From 2012 to 2022, the rate of growth in terms of prices for the United Arab Emirates amounted to +0.3% per year.

Source: IndexBox Platform