Republic of Korea: Unmanufactured Tobacco Market 2024

Unmanufactured Tobacco Market Size in Republic of Korea

The South Korean unmanufactured tobacco market rose rapidly to $X in 2022, increasing by 12% against the previous year. Over the period under review, consumption, however, showed a slight shrinkage. Unmanufactured tobacco consumption peaked at $X in 2013; however, from 2014 to 2022, consumption stood at a somewhat lower figure.

Unmanufactured Tobacco Production in Republic of Korea

In value terms, unmanufactured tobacco production reached $X in 2022 estimated in export price. Over the period under review, production, however, saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2018 when the production volume increased by 20% against the previous year. Unmanufactured tobacco production peaked at $X in 2012; however, from 2013 to 2022, production failed to regain momentum.

The average yield of tobacco (unmanufactured) in South Korea shrank to X tons per ha in 2022, remaining constant against the year before. Over the period under review, the yield saw a relatively flat trend pattern. The most prominent rate of growth was recorded in 2015 with an increase of 2.8% against the previous year. As a result, the yield reached the peak level of X tons per ha. From 2016 to 2022, the growth of the average unmanufactured tobacco 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, approx. X ha of tobacco (unmanufactured) were harvested in South Korea; approximately reflecting 2021. In general, the harvested area, however, continues to indicate a mild setback. The pace of growth was the most pronounced in 2016 with an increase of 4.6% against the previous year. Over the period under review, the harvested area dedicated to unmanufactured tobacco production attained the peak figure at X ha in 2012; however, from 2013 to 2022, the harvested area stood at a somewhat lower figure.

Unmanufactured Tobacco Exports

Exports from Republic of Korea

In 2022, overseas shipments of tobacco (unmanufactured) increased by 38% to X tons, rising for the third year in a row after two years of decline. In general, exports, however, recorded a slight reduction. Over the period under review, the exports hit record highs at X tons in 2013; however, from 2014 to 2022, the exports failed to regain momentum.

In value terms, unmanufactured tobacco exports soared to $X in 2022. Over the period under review, total exports indicated mild growth from 2012 to 2022: its value increased at an average annual rate of +1.1% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, exports increased by +71.5% against 2019 indices. The exports peaked at $X in 2014; however, from 2015 to 2022, the exports failed to regain momentum.

Exports by Country

Russia (X tons), Turkey (X tons) and Malaysia (X tons) were the main destinations of unmanufactured tobacco exports from South Korea, together accounting for 91% of total exports. Singapore and Indonesia lagged somewhat behind, together comprising a further 8.8%.

From 2012 to 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Indonesia (with a CAGR of +92.5%), while the other leaders experienced more modest paces of growth.

In value terms, Russia ($X) remains the key foreign market for tobacco (unmanufactured) exports from South Korea, comprising 76% of total exports. The second position in the ranking was held by Turkey ($X), with a 19% share of total exports. It was followed by Indonesia, with a 2.5% share.

From 2012 to 2022, the average annual growth rate of value to Russia stood at +5.2%. Exports to the other major destinations recorded the following average annual rates of exports growth: Turkey (+3.8% per year) and Indonesia (+88.2% per year).

Export Prices by Country

The average unmanufactured tobacco export price stood at $X per ton in 2022, rising by 21% against the previous year. Over the last decade, it increased at an average annual rate of +2.7%. The most prominent rate of growth was recorded in 2018 an increase of 22%. The export price peaked in 2022 and is expected to retain growth in years to come.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was Russia ($X per ton), while the average price for exports to Malaysia ($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 the Philippines (+5.4%), while the prices for the other major destinations experienced mixed trend patterns.

Unmanufactured Tobacco Imports

Imports into Republic of Korea

Unmanufactured tobacco imports into South Korea expanded remarkably to X tons in 2022, picking up by 7.8% on 2021 figures. Overall, imports, however, recorded a mild shrinkage. The most prominent rate of growth was recorded in 2016 with an increase of 38% against the previous year. As a result, imports attained the peak of X tons. From 2017 to 2022, the growth of imports remained at a lower figure.

In value terms, unmanufactured tobacco imports surged to $X in 2022. In general, imports, however, showed a slight curtailment. The pace of growth was the most pronounced in 2016 with an increase of 32%. Imports peaked at $X in 2013; however, from 2014 to 2022, imports failed to regain momentum.

Imports by Country

India (X tons), Brazil (X tons) and Tanzania (X tons) were the main suppliers of unmanufactured tobacco imports to South Korea, with a combined 52% share of total imports. Malawi, China, the United States, Zimbabwe, Argentina, Turkey, Greece, Paraguay and Mozambique lagged somewhat behind, together comprising a further 36%.

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 +31.1%), while imports for the other leaders experienced more modest paces of growth.

In value terms, the largest unmanufactured tobacco suppliers to South Korea were Brazil ($X), India ($X) and the United States ($X), with a combined 50% share of total imports. Tanzania, Malawi, Zimbabwe, China, Turkey, Greece, Argentina, Mozambique and Paraguay lagged somewhat behind, together comprising a further 37%.

Zimbabwe, with a CAGR of +28.1%, 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 2022, the average unmanufactured tobacco import price amounted to $X per ton, growing by 8.9% against the previous year. In general, the import price recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2013 an increase of 12% against the previous year. Over the period under review, average import prices reached the peak figure at $X per ton in 2014; however, from 2015 to 2022, import prices remained at a lower figure.

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 Greece ($X per ton), while the price for Paraguay ($X per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by China (+3.9%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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