Indonesia: Tobacco Market 2025

Tobacco Market Size in Indonesia

In 2021, the Indonesian tobacco market decreased by -1.5% to $X for the first time since 2018, thus ending a two-year rising trend. Over the period under review, consumption showed a pronounced curtailment. The most prominent rate of growth was recorded in 2019 when the market value increased by 2% against the previous year. Over the period under review, the market attained the peak level at $X in 2012; however, from 2013 to 2021, consumption stood at a somewhat lower figure.

Tobacco Production in Indonesia

In value terms, tobacco production shrank slightly to $X in 2021 estimated in export price. Overall, production showed a perceptible descent. The most prominent rate of growth was recorded in 2015 with an increase of 4.3% against the previous year. Over the period under review, production hit record highs at $X in 2012; however, from 2013 to 2021, production failed to regain momentum.

Tobacco Exports

Exports from Indonesia

In 2021, shipments abroad of tobacco (smoking tobacco, chewing tobacco, snuff) decreased by -1.8% to X tons, falling for the fourth year in a row after two years of growth. Overall, exports, however, continue to indicate a resilient increase. The growth pace was the most rapid in 2016 with an increase of 217% against the previous year. The exports peaked at X tons in 2017; however, from 2018 to 2021, the exports stood at a somewhat lower figure.

In value terms, tobacco exports reduced to $X in 2021. In general, exports, however, recorded buoyant growth. The most prominent rate of growth was recorded in 2016 when exports increased by 143% against the previous year. The exports peaked at $X in 2019; however, from 2020 to 2021, the exports stood at a somewhat lower figure.

Exports by Country

South Korea (X tons) was the main destination for tobacco exports from Indonesia, with a 28% share of total exports. Moreover, tobacco exports to South Korea exceeded the volume sent to the second major destination, Papua New Guinea (X tons), twofold. Australia (X tons) ranked third in terms of total exports with an 11% share.

From 2012 to 2021, the average annual rate of growth in terms of volume to South Korea totaled +55.1%. Exports to the other major destinations recorded the following average annual rates of exports growth: Papua New Guinea (+194.3% per year) and Australia (+39.5% per year).

In value terms, the largest markets for tobacco exported from Indonesia were South Korea ($X), Australia ($X) and Papua New Guinea ($X), with a combined 55% share of total exports.

In terms of the main countries of destination, Papua New Guinea, with a CAGR of +158.9%, recorded the highest rates of growth with regard to the value of exports, over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2021, the average tobacco export price amounted to $X per ton, waning by -11.3% against the previous year. Overall, the export price saw a relatively flat trend pattern. The pace of growth appeared the most rapid in 2018 an increase of 39%. The export price peaked at $X per ton in 2019; however, from 2020 to 2021, the export prices stood at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Australia ($X per ton), while the average price for exports to Vietnam ($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 Fiji (+12.1%), while the prices for the other major destinations experienced more modest paces of growth.

Tobacco Imports

Imports into Indonesia

After five years of growth, overseas purchases of tobacco (smoking tobacco, chewing tobacco, snuff) decreased by -9% to X tons in 2021. Overall, imports saw a noticeable curtailment. The growth pace was the most rapid in 2016 when imports increased by 103% against the previous year. Over the period under review, imports hit record highs at X tons in 2014; however, from 2015 to 2021, imports failed to regain momentum.

In value terms, tobacco imports shrank slightly to $X in 2021. In general, imports showed a pronounced descent. The pace of growth was the most pronounced in 2016 with an increase of 71% against the previous year. Over the period under review, imports hit record highs at $X in 2012; however, from 2013 to 2021, imports stood at a somewhat lower figure.

Imports by Country

The United Arab Emirates (X tons), Zimbabwe (X tons) and China (X tons) were the main suppliers of tobacco imports to Indonesia, together comprising 62% of total imports. South Korea, the Philippines, Malaysia, Brazil, France and Lao People's Democratic Republic lagged somewhat behind, together comprising a further 32%.

From 2012 to 2021, the biggest increases were recorded for South Korea (with a CAGR of +166.9%), while purchases for the other leaders experienced more modest paces of growth.

In value terms, the largest tobacco suppliers to Indonesia were South Korea ($X), China ($X) and the United Arab Emirates ($X), with a combined 64% share of total imports.

In terms of the main suppliers, South Korea, with a CAGR of +156.3%, saw 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 2021, the average tobacco import price amounted to $X per ton, picking up by 7.2% against the previous year. In general, the import price, however, showed a noticeable setback. The pace of growth appeared the most rapid in 2019 when the average import price increased by 21% against the previous year. Over the period under review, average import prices reached the maximum at $X per ton in 2012; however, from 2013 to 2021, import prices failed to regain momentum.

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

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by China (+7.0%), while the prices for the other major suppliers experienced mixed trend patterns.

Source: IndexBox Platform

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