Pakistan: Tobacco Market 2024

Tobacco Market Size in Pakistan

In 2021, the Pakistani tobacco market decreased by -5.9% to $X for the first time since 2018, thus ending a two-year rising trend. Over the period under review, consumption continues to indicate a perceptible descent. Over the period under review, the market reached the peak level at $X in 2016; however, from 2017 to 2021, consumption stood at a somewhat lower figure.

Tobacco Production in Pakistan

In value terms, tobacco production declined to $X in 2021 estimated in export price. In general, production showed a pronounced reduction. The most prominent rate of growth was recorded in 2016 when the production volume increased by 12% against the previous year. As a result, production reached the peak level of $X. From 2017 to 2021, production growth remained at a lower figure.

Tobacco Exports

Exports from Pakistan

Tobacco exports from Pakistan skyrocketed to X tons in 2021, surging by 27% on the previous year. Overall, exports saw a significant increase. The growth pace was the most rapid in 2019 when exports increased by 382%. Over the period under review, the exports hit record highs in 2021 and are likely to see steady growth in the immediate term.

In value terms, tobacco exports soared to $X in 2021. Over the period under review, exports enjoyed a significant increase. The pace of growth was the most pronounced in 2019 with an increase of 406%. Over the period under review, the exports attained the peak figure in 2021 and are expected to retain growth in years to come.

Exports by Country

Yemen (X tons) was the main destination for tobacco exports from Pakistan, accounting for a 68% share of total exports. Moreover, tobacco exports to Yemen exceeded the volume sent to the second major destination, Afghanistan (X tons), threefold. Mauritania (X tons) ranked third in terms of total exports with a 3.4% share.

From 2012 to 2021, the average annual growth rate of volume to Yemen amounted to +100.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Afghanistan (+117.4% per year) and Mauritania (0.0% per year).

In value terms, Yemen ($X) remains the key foreign market for tobacco (smoking tobacco, chewing tobacco, snuff) exports from Pakistan, comprising 77% of total exports. The second position in the ranking was held by Afghanistan ($X), with a 15% share of total exports. It was followed by Mauritania, with a 2.9% share.

From 2012 to 2021, the average annual growth rate of value to Yemen totaled +101.0%. Exports to the other major destinations recorded the following average annual rates of exports growth: Afghanistan (+109.3% per year) and Mauritania (0.0% per year).

Export Prices by Country

The average tobacco export price stood at $X per ton in 2021, picking up by 8.3% against the previous year. In general, the export price, however, saw a mild downturn. The most prominent rate of growth was recorded in 2016 when the average export price increased by 18%. As a result, the export price reached the peak level of $X per ton. From 2017 to 2021, the average export prices failed to regain momentum.

There were significant differences in the average prices for the major overseas markets. In 2021, amid the top suppliers, the country with the highest price was Yemen ($X per ton), while the average price for exports to Belgium ($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 Yemen (+0.4%), while the prices for the other major destinations experienced a decline.

Tobacco Imports

Imports into Pakistan

For the fourth year in a row, Pakistan recorded growth in purchases abroad of tobacco (smoking tobacco, chewing tobacco, snuff), which increased by 69% to X tons in 2021. Overall, imports recorded significant growth. The pace of growth appeared the most rapid in 2016 when imports increased by 279%. Over the period under review, imports hit record highs in 2021 and are likely to see gradual growth in the immediate term.

In value terms, tobacco imports soared to $X in 2021. Over the period under review, imports continue to indicate a significant increase. The pace of growth was the most pronounced in 2016 when imports increased by 346%. Over the period under review, imports attained the maximum in 2021 and are expected to retain growth in years to come.

Imports by Country

The United States (X tons), the United Arab Emirates (X tons) and the Philippines (X tons) were the main suppliers of tobacco imports to Pakistan, with a combined 88% share of total imports.

From 2012 to 2021, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by the United States (with a CAGR of +302.7%), while imports for the other leaders experienced more modest paces of growth.

In value terms, the United Arab Emirates ($X), the United States ($X) and the Philippines ($X) appeared to be the largest tobacco suppliers to Pakistan, with a combined 84% share of total imports.

The United States, with a CAGR of +259.7%, saw the highest rates of growth with regard to the value of imports, in terms of the main suppliers 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, which is down by -3.9% against the previous year. Overall, the import price recorded a pronounced slump. The growth pace was the most rapid in 2018 an increase of 74% against the previous year. As a result, import price attained the peak level of $X per ton. From 2019 to 2021, the average import prices failed to regain momentum.

There were significant differences in the average prices amongst the major supplying countries. In 2021, amid the top importers, the country with the highest price was Indonesia ($X per ton), while the price for Malaysia ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the Philippines (+1.4%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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