Republic of Korea: Tobacco Market 2025

Tobacco Market Size in Republic of Korea

The South Korean tobacco market expanded notably to $X in 2021, picking up by 5% against the previous year. In general, consumption showed a abrupt decrease. 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 Republic of Korea

In value terms, tobacco production rose remarkably to $X in 2021 estimated in export price. Over the period under review, production saw a perceptible curtailment. The pace of growth appeared the most rapid in 2019 with an increase of 85%. Tobacco production peaked at $X in 2012; however, from 2013 to 2021, production stood at a somewhat lower figure.

Tobacco Exports

Exports from Republic of Korea

In 2021, overseas shipments of tobacco (smoking tobacco, chewing tobacco, snuff) increased by 1.7% to X tons, rising for the second consecutive year after two years of decline. In general, exports enjoyed a strong increase. The most prominent rate of growth was recorded in 2017 when exports increased by 130%. As a result, the exports attained the peak of X tons. From 2018 to 2021, the growth of the exports remained at a lower figure.

In value terms, tobacco exports skyrocketed to $X in 2021. Overall, exports showed resilient growth. The growth pace was the most rapid in 2017 with an increase of 218%. As a result, the exports attained the peak of $X. From 2018 to 2021, the growth of the exports remained at a somewhat lower figure.

Exports by Country

Japan (X tons), Indonesia (X tons) and Russia (X tons) were the main destinations of tobacco exports from South Korea, with a combined 37% share of total exports. These countries were followed by Paraguay, Iran, Jordan, Hong Kong SAR, Egypt, Thailand, Belarus, Nigeria, Turkey and Taiwan (Chinese), which together accounted for a further 36%.

From 2012 to 2021, the biggest increases were recorded for Paraguay (with a CAGR of +48.7%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, Japan ($X), Indonesia ($X) and Russia ($X) were the largest markets for tobacco exported from South Korea worldwide, together accounting for 41% of total exports.

Indonesia, with a CAGR of +51.6%, recorded 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

The average tobacco export price stood at $X per ton in 2021, picking up by 24% against the previous year. Overall, the export price recorded buoyant growth. The pace of growth was the most pronounced in 2019 when the average export price increased by 73%. As a result, the export price reached the peak level of $X per ton. From 2020 to 2021, the average export prices failed to regain momentum.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Egypt ($X per ton), while the average price for exports to Paraguay ($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 Nigeria (+21.5%), while the prices for the other major destinations experienced more modest paces of growth.

Tobacco Imports

Imports into Republic of Korea

Tobacco imports into South Korea reduced modestly to X tons in 2021, falling by -2% compared with 2020 figures. Overall, imports showed a mild decline. The most prominent rate of growth was recorded in 2016 when imports increased by 50% against the previous year. Imports peaked at X tons in 2018; however, from 2019 to 2021, imports stood at a somewhat lower figure.

In value terms, tobacco imports declined modestly to $X in 2021. Over the period under review, imports, however, enjoyed a moderate increase. The growth pace was the most rapid in 2017 when imports increased by 32%. Over the period under review, imports hit record highs at $X in 2018; however, from 2019 to 2021, imports remained at a lower figure.

Imports by Country

In 2021, the Philippines (X tons) constituted the largest supplier of tobacco to South Korea, with a 38% share of total imports. Moreover, tobacco imports from the Philippines exceeded the figures recorded by the second-largest supplier, France (X tons), fivefold. The third position in this ranking was held by Germany (X tons), with a 5.7% share.

From 2012 to 2021, the average annual rate of growth in terms of volume from the Philippines totaled -9.8%. The remaining supplying countries recorded the following average annual rates of imports growth: France (+31.1% per year) and Germany (+11.6% per year).

In value terms, the largest tobacco suppliers to South Korea were the Philippines ($X), France ($X) and Germany ($X), together accounting for 45% of total imports. These countries were followed by the UK, the United States, the United Arab Emirates, Indonesia, Italy and Malaysia, which together accounted for a further 10%.

The United Arab Emirates, with a CAGR of +144.7%, recorded 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, remaining relatively unchanged against the previous year. Over the last nine years, it increased at an average annual rate of +3.2%. The pace of growth was the most pronounced in 2017 an increase of 33% against the previous year. The import price peaked at $X per ton in 2018; however, from 2019 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 Italy ($X per ton), while the price for Malaysia ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Italy (+26.5%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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