Panama: Unmanufactured Tobacco Market 2024

Unmanufactured Tobacco Market Size in Panama

The Panamanian unmanufactured tobacco market fell to $X in 2022, which is down by -5.2% against the previous year. The market value increased at an average annual rate of +1.6% over the period from 2012 to 2022; the trend pattern remained consistent, with somewhat noticeable fluctuations being recorded throughout the analyzed period. Unmanufactured tobacco consumption peaked at $X in 2019; however, from 2020 to 2022, consumption remained at a lower figure.

Unmanufactured Tobacco Production in Panama

In value terms, unmanufactured tobacco production contracted to $X in 2022 estimated in export price. Overall, production, however, continues to indicate a strong expansion. The pace of growth appeared the most rapid in 2015 with an increase of 258% against the previous year. Unmanufactured tobacco production peaked at $X in 2019; however, from 2020 to 2022, production failed to regain momentum.

In 2022, the average unmanufactured tobacco yield in Panama contracted modestly to X tons per ha, therefore, remained relatively stable against 2021. Overall, the yield saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2016 when the yield increased by 1%. Over the period under review, the average unmanufactured tobacco yield hit record highs at X tons per ha in 2013; however, from 2014 to 2022, the yield remained at a 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, the harvested area of tobacco (unmanufactured) in Panama dropped to X ha, approximately equating 2021. Over the period under review, the harvested area, however, showed a relatively flat trend pattern. The growth pace was the most rapid in 2014 with an increase of 4% against the previous year. The unmanufactured tobacco harvested area peaked at X ha in 2021, and then dropped slightly in the following year.

Unmanufactured Tobacco Exports

Exports from Panama

In 2022, overseas shipments of tobacco (unmanufactured) were finally on the rise to reach X tons after two years of decline. In general, exports saw noticeable growth. The pace of growth was the most pronounced in 2014 with an increase of 2,450%. Over the period under review, the exports hit record highs in 2022 and are likely to see steady growth in the immediate term.

In value terms, unmanufactured tobacco exports surged to $X in 2022. Over the period under review, exports saw a buoyant expansion. The most prominent rate of growth was recorded in 2016 with an increase of 1,884%. The exports peaked in 2022 and are expected to retain growth in the near future.

Exports by Country

Honduras (X tons) was the main destination for unmanufactured tobacco exports from Panama, with a 92% share of total exports. Moreover, unmanufactured tobacco exports to Honduras exceeded the volume sent to the second major destination, the United States (X tons), more than tenfold.

From 2012 to 2022, the average annual growth rate of volume to Honduras stood at +230.2%.

In value terms, Honduras ($X) remains the key foreign market for tobacco (unmanufactured) exports from Panama, comprising 96% of total exports. The second position in the ranking was held by the United States ($X), with a 1.5% share of total exports.

From 2012 to 2022, the average annual rate of growth in terms of value to Honduras amounted to +252.9%.

Export Prices by Country

In 2022, the average unmanufactured tobacco export price amounted to $X per ton, growing by 10% against the previous year. Over the period under review, the export price posted a prominent expansion. The most prominent rate of growth was recorded in 2015 when the average export price increased by 335% against the previous year. The export price peaked at $X per ton in 2013; however, from 2014 to 2022, the export prices remained at a lower figure.

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

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Free Zones (+74.7%), while the prices for the other major destinations experienced mixed trend patterns.

Unmanufactured Tobacco Imports

Imports into Panama

In 2022, unmanufactured tobacco imports into Panama expanded slightly to X tons, rising by 1.8% against the previous year's figure. Over the period under review, imports saw a prominent expansion. The most prominent rate of growth was recorded in 2013 when imports increased by 978% against the previous year. As a result, imports reached the peak of X tons. From 2014 to 2022, the growth of imports failed to regain momentum.

In value terms, unmanufactured tobacco imports amounted to $X in 2022. In general, imports continue to indicate a significant expansion. The growth pace was the most rapid in 2013 with an increase of 1,032% against the previous year. As a result, imports reached the peak of $X. From 2014 to 2022, the growth of imports remained at a somewhat lower figure.

Imports by Country

Italy (X tons), Honduras (X tons) and Nicaragua (X tons) were the main suppliers of unmanufactured tobacco imports to Panama, together comprising 93% of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Nicaragua (with a CAGR of +80.0%), while imports for the other leaders experienced more modest paces of growth.

In value terms, Italy ($X), Honduras ($X) and Nicaragua ($X) were the largest unmanufactured tobacco suppliers to Panama, together comprising 90% of total imports.

Among the main suppliers, Honduras, with a CAGR of +88.1%, saw the highest growth rate of 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

The average unmanufactured tobacco import price stood at $X per ton in 2022, approximately equating the previous year. Over the period under review, import price indicated a pronounced expansion from 2012 to 2022: its price increased at an average annual rate of +3.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, unmanufactured tobacco import price increased by +14.6% against 2019 indices. The growth pace was the most rapid in 2016 an increase of 45% against the previous year. As a result, import price reached the peak level of $X per ton. From 2017 to 2022, the average import prices failed to regain momentum.

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

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Canada (+38.9%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform