Philippines: Unmanufactured Tobacco Market 2024

Unmanufactured Tobacco Market Size in the Philippines

In 2022, the Philippine unmanufactured tobacco market decreased by -1.2% to $X, falling for the second consecutive year after three years of growth. In general, consumption posted a tangible increase. Unmanufactured tobacco consumption peaked at $X in 2020; however, from 2021 to 2022, consumption failed to regain momentum.

Unmanufactured Tobacco Production in the Philippines

In value terms, unmanufactured tobacco production rose to $X in 2022 estimated in export price. Over the period under review, the total production indicated buoyant growth from 2012 to 2022: its value increased at an average annual rate of +6.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production decreased by -2.3% against 2020 indices. The most prominent rate of growth was recorded in 2018 when the production volume increased by 137%. Over the period under review, production hit record highs at $X in 2020; however, from 2021 to 2022, production failed to regain momentum.

The average yield of tobacco (unmanufactured) in the Philippines stood at X tons per ha in 2022, remaining stable against the previous year's figure. The yield figure increased at an average annual rate of +2.4% from 2012 to 2022; the trend pattern remained consistent, with only minor fluctuations being observed throughout the analyzed period. The most prominent rate of growth was recorded in 2013 with an increase of 10%. The unmanufactured tobacco yield peaked at X tons per ha in 2019; afterwards, it flattened through to 2022. 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 the Philippines; approximately mirroring the previous year's figure. In general, the harvested area, however, showed a slight decline. The pace of growth appeared the most rapid in 2014 with an increase of 4.7%. As a result, the harvested area attained the peak level of X ha. From 2015 to 2022, the growth of the unmanufactured tobacco harvested area failed to regain momentum.

Unmanufactured Tobacco Exports

Exports from the Philippines

In 2022, shipments abroad of tobacco (unmanufactured) increased by 6.3% to X tons, rising for the second consecutive year after three years of decline. In general, exports recorded temperate growth. The pace of growth was the most pronounced in 2017 with an increase of 179%. As a result, the exports attained the peak of X tons. From 2018 to 2022, the growth of the exports remained at a somewhat lower figure.

In value terms, unmanufactured tobacco exports rose slightly to $X in 2022. Overall, exports showed a prominent expansion. The pace of growth was the most pronounced in 2018 with an increase of 40% against the previous year. The exports peaked in 2022 and are expected to retain growth in years to come.

Exports by Country

Myanmar (X tons), Indonesia (X tons) and the United States (X tons) were the main destinations of unmanufactured tobacco exports from the Philippines, together comprising 48% of total exports. The Dominican Republic, Belgium, Taiwan (Chinese), South Korea, Malaysia, the United Arab Emirates, the Netherlands, Sweden and Germany lagged somewhat behind, together comprising a further 41%.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by the Dominican Republic (with a CAGR of +66.8%), while the other leaders experienced more modest paces of growth.

In value terms, Myanmar ($X), the Dominican Republic ($X) and Indonesia ($X) constituted the largest markets for unmanufactured tobacco exported from the Philippines worldwide, together comprising 56% of total exports. Belgium, the United States, South Korea, Taiwan (Chinese), the United Arab Emirates, Sweden, the Netherlands, Germany and Malaysia lagged somewhat behind, together accounting for a further 29%.

Taiwan (Chinese), with a CAGR of +76.8%, saw the highest rates of growth with regard to the value of exports, in terms of the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2022, the average unmanufactured tobacco export price amounted to $X per ton, waning by -1.5% against the previous year. Over the period under review, the export price, however, showed a buoyant increase. The pace of growth was the most pronounced in 2018 when the average export price increased by 121%. The export price peaked at $X per ton in 2021, and then fell modestly in the following year.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was the Dominican Republic ($X per ton), while the average price for exports to Malaysia ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was recorded for supplies to Germany (+9.4%), while the prices for the other major destinations experienced more modest paces of growth.

Unmanufactured Tobacco Imports

Imports into the Philippines

In 2022, after three years of decline, there was significant growth in purchases abroad of tobacco (unmanufactured), when their volume increased by 20% to X tons. Over the period under review, imports showed a relatively flat trend pattern. The most prominent rate of growth was recorded in 2018 with an increase of 51%. As a result, imports reached the peak of X tons. From 2019 to 2022, the growth of imports failed to regain momentum.

In value terms, unmanufactured tobacco imports amounted to $X in 2022. In general, imports saw resilient growth. The pace of growth appeared the most rapid in 2016 when imports increased by 44% against the previous year. Imports peaked at $X in 2018; however, from 2019 to 2022, imports remained at a lower figure.

Imports by Country

India (X tons), China (X tons) and Brazil (X tons) were the main suppliers of unmanufactured tobacco imports to the Philippines, with a combined 60% share of total imports. Belgium, Bangladesh, Switzerland, Zimbabwe, Indonesia, Turkey, Germany, Pakistan, Malawi and Vietnam lagged somewhat behind, together comprising a further 32%.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the main suppliers, was attained by Zimbabwe (with a CAGR of +77.4%), while imports for the other leaders experienced more modest paces of growth.

In value terms, the largest unmanufactured tobacco suppliers to the Philippines were India ($X), Belgium ($X) and China ($X), together accounting for 50% of total imports. Brazil, Indonesia, Bangladesh, Switzerland, Germany, Turkey, Zimbabwe, Malawi, Pakistan and Vietnam lagged somewhat behind, together accounting for a further 36%.

Among the main suppliers, Zimbabwe, with a CAGR of +72.9%, recorded 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

The average unmanufactured tobacco import price stood at $X per ton in 2022, shrinking by -14.6% against the previous year. Over the period under review, import price indicated a moderate expansion from 2012 to 2022: its price increased at an average annual rate of +4.8% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth was the most pronounced in 2014 an increase of 24%. Over the period under review, average import prices attained the peak figure at $X per ton in 2021, and then reduced in the following year.

There were significant differences in the average prices amongst the major supplying countries. In 2022, amid the top importers, the country with the highest price was Indonesia ($X per ton), while the price for China ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Indonesia (+14.5%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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