Nepal: Unmanufactured Tobacco Market 2025

Unmanufactured Tobacco Market Size in Nepal

The Nepalese unmanufactured tobacco market was finally on the rise to reach $X in 2022, after two years of decline. Overall, consumption continues to indicate a relatively flat trend pattern. As a result, consumption attained the peak level of $X. From 2017 to 2022, the growth of the market remained at a somewhat lower figure.

Unmanufactured Tobacco Production in Nepal

In value terms, unmanufactured tobacco production rose notably to $X in 2022 estimated in export price. Over the period under review, production saw a moderate increase. The pace of growth appeared the most rapid in 2017 when the production volume increased by 147% against the previous year. Unmanufactured tobacco production peaked at $X in 2020; however, from 2021 to 2022, production failed to regain momentum.

The average yield of tobacco (unmanufactured) in Nepal amounted to X tons per ha in 2022, approximately equating 2021. Overall, the yield, however, showed a mild downturn. The most prominent rate of growth was recorded in 2017 with an increase of 29% against the previous year. The unmanufactured tobacco yield peaked at X tons per ha in 2012; however, from 2013 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.

In 2022, approx. X ha of tobacco (unmanufactured) were harvested in Nepal; growing by 1.9% compared with the year before. Over the period under review, the harvested area, however, recorded a noticeable slump. The most prominent rate of growth was recorded in 2017 with an increase of 116% against the previous year. The unmanufactured tobacco harvested area peaked at X ha in 2012; however, from 2013 to 2022, the harvested area stood at a somewhat lower figure.

Unmanufactured Tobacco Exports

Exports from Nepal

After five years of growth, overseas shipments of tobacco (unmanufactured) decreased by -12.7% to X tons in 2022. Overall, exports recorded a abrupt shrinkage. The growth pace was the most rapid in 2019 when exports increased by 176%. Over the period under review, the exports hit record highs at X tons in 2013; however, from 2014 to 2022, the exports remained at a lower figure.

In value terms, unmanufactured tobacco exports declined remarkably to $X in 2022. In general, exports, however, enjoyed measured growth. The pace of growth was the most pronounced in 2019 with an increase of 231% against the previous year. The exports peaked at $X in 2013; however, from 2014 to 2022, the exports stood at a somewhat lower figure.

Exports by Country

South Korea (X tons) was the main destination for unmanufactured tobacco exports from Nepal, accounting for a 78% share of total exports. Moreover, unmanufactured tobacco exports to South Korea exceeded the volume sent to the second major destination, India (X tons), threefold.

From 2012 to 2022, the average annual rate of growth in terms of volume to South Korea stood at +22.1%.

In value terms, South Korea ($X) remains the key foreign market for tobacco (unmanufactured) exports from Nepal, comprising 92% of total exports. The second position in the ranking was held by India ($X), with a 7.9% share of total exports.

From 2012 to 2022, the average annual rate of growth in terms of value to South Korea amounted to +23.8%.

Export Prices by Country

The average unmanufactured tobacco export price stood at $X per ton in 2022, falling by -3.3% against the previous year. Overall, the export price, however, posted prominent growth. The growth pace was the most rapid in 2014 an increase of 124% against the previous year. The export price peaked at $X per ton in 2021, and then reduced slightly in the following year.

There were significant differences in the average prices for the major foreign markets. In 2022, amid the top suppliers, the country with the highest price was South Korea ($X per ton), while the average price for exports to India amounted to $X per ton.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Malaysia (+13.6%), while the prices for the other major destinations experienced more modest paces of growth.

Unmanufactured Tobacco Imports

Imports into Nepal

In 2022, supplies from abroad of tobacco (unmanufactured) was finally on the rise to reach X tons for the first time since 2019, thus ending a two-year declining trend. In general, total imports indicated a noticeable expansion from 2012 to 2022: its volume increased at an average annual rate of +3.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The most prominent rate of growth was recorded in 2016 with an increase of 80%. As a result, imports attained the peak of X tons. From 2017 to 2022, the growth of imports failed to regain momentum.

In value terms, unmanufactured tobacco imports rose markedly to $X in 2022. Over the period under review, total imports indicated a perceptible increase from 2012 to 2022: its value increased at an average annual rate of +2.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, imports increased by +14.7% against 2018 indices. The pace of growth was the most pronounced in 2016 when imports increased by 76% against the previous year. As a result, imports reached the peak of $X. From 2017 to 2022, the growth of imports remained at a somewhat lower figure.

Imports by Country

In 2022, India (X tons) was the main unmanufactured tobacco supplier to Nepal, accounting for a approx. 100% share of total imports.

From 2012 to 2022, the average annual growth rate of volume from India amounted to +3.1%.

In value terms, India ($X) constituted the largest supplier of tobacco (unmanufactured) to Nepal.

From 2012 to 2022, the average annual rate of growth in terms of value from India totaled +2.0%.

Import Prices by Country

In 2022, the average unmanufactured tobacco import price amounted to $X per ton, declining by -9.3% against the previous year. In general, the import price recorded a mild decline. The growth pace was the most rapid in 2015 when the average import price increased by 12% against the previous year. Over the period under review, average import prices hit record highs at $X per ton in 2017; however, from 2018 to 2022, import prices failed to regain momentum.

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

From 2012 to 2022, the rate of growth in terms of prices for India amounted to -1.1% per year.

Source: IndexBox Platform