Sri Lanka: Unmanufactured Tobacco Market 2024

Unmanufactured Tobacco Market Size in Sri Lanka

The Sri Lankan unmanufactured tobacco market fell remarkably to $X in 2022, reducing by -22.6% against the previous year. Overall, consumption recorded a slight downturn. Over the period under review, the market attained the maximum level at $X in 2016; however, from 2017 to 2022, consumption failed to regain momentum.

Unmanufactured Tobacco Production in Sri Lanka

In value terms, unmanufactured tobacco production declined to $X in 2022 estimated in export price. Over the period under review, the total production indicated prominent growth from 2012 to 2022: its value increased at an average annual rate of +6.9% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +9.7% against 2020 indices. The most prominent rate of growth was recorded in 2013 when the production volume increased by 84% against the previous year. Over the period under review, production hit record highs at $X in 2019; however, from 2020 to 2022, production remained at a lower figure.

The average yield of tobacco (unmanufactured) in Sri Lanka dropped significantly to X tons per ha in 2022, with a decrease of -21.5% compared with the year before. In general, the yield, however, showed strong growth. The most prominent rate of growth was recorded in 2021 with an increase of 58%. As a result, the yield reached the peak level of X tons per ha, and then fell sharply in the following year. Despite the increased use of modern agricultural techniques and methods, future yield figures may still be impacted by adverse weather conditions.

The unmanufactured tobacco harvested area in Sri Lanka reduced modestly to X ha in 2022, waning by -2.6% compared with 2021. Overall, the harvested area recorded a deep slump. The growth pace was the most rapid in 2016 with an increase of 16%. Over the period under review, the harvested area dedicated to unmanufactured tobacco production reached the maximum at X ha in 2012; however, from 2013 to 2022, the harvested area remained at a lower figure.

Unmanufactured Tobacco Exports

Exports from Sri Lanka

After six years of growth, shipments abroad of tobacco (unmanufactured) decreased by -21% to X tons in 2022. In general, exports, however, continue to indicate a significant expansion. The most prominent rate of growth was recorded in 2021 with an increase of 144%. As a result, the exports attained the peak of X tons, and then contracted significantly in the following year.

In value terms, unmanufactured tobacco exports reduced dramatically to $X in 2022. Overall, exports, however, recorded a resilient expansion. The most prominent rate of growth was recorded in 2017 when exports increased by 112%. The exports peaked at $X in 2021, and then contracted notably in the following year.

Exports by Country

Hungary (X tons), Italy (X tons) and Poland (X tons) were the main destinations of unmanufactured tobacco exports from Sri Lanka, with a combined 35% share of total exports.

From 2012 to 2022, the biggest increases were recorded for Hungary (with a CAGR of +48.0%), while shipments for the other leaders experienced more modest paces of growth.

In value terms, Hungary ($X), Poland ($X) and Spain ($X) appeared to be the largest markets for unmanufactured tobacco exported from Sri Lanka worldwide, together accounting for 41% of total exports.

In terms of the main countries of destination, Poland, with a CAGR of +59.9%, saw the highest growth rate of the value of exports, 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, rising by 5.4% against the previous year. Overall, the export price, however, showed a abrupt contraction. The pace of growth was the most pronounced in 2013 an increase of 30%. Over the period under review, the average export prices attained the maximum at $X per ton in 2014; however, from 2015 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 the Netherlands ($X per ton), while the average price for exports to the UK ($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 Poland (+27.6%), while the prices for the other major destinations experienced mixed trend patterns.

Unmanufactured Tobacco Imports

Imports into Sri Lanka

In 2022, the amount of tobacco (unmanufactured) imported into Sri Lanka fell significantly to X tons, waning by -40.5% against 2021 figures. In general, imports, however, saw a noticeable increase. The most prominent rate of growth was recorded in 2021 with an increase of 67% against the previous year. Over the period under review, imports reached the peak figure at X tons in 2015; however, from 2016 to 2022, imports failed to regain momentum.

In value terms, unmanufactured tobacco imports contracted dramatically to $X in 2022. Overall, imports recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2019 when imports increased by 27%. Over the period under review, imports hit record highs at $X in 2015; however, from 2016 to 2022, imports failed to regain momentum.

Imports by Country

In 2022, Indonesia (X tons) constituted the largest unmanufactured tobacco supplier to Sri Lanka, with a 50% share of total imports. Moreover, unmanufactured tobacco imports from Indonesia exceeded the figures recorded by the second-largest supplier, Italy (X tons), threefold. The third position in this ranking was taken by Belgium (X tons), with a 10% share.

From 2012 to 2022, the average annual rate of growth in terms of volume from Indonesia totaled +11.0%. The remaining supplying countries recorded the following average annual rates of imports growth: Italy (+4.3% per year) and Belgium (+7.2% per year).

In value terms, Indonesia ($X) constituted the largest supplier of tobacco (unmanufactured) to Sri Lanka, comprising 56% of total imports. The second position in the ranking was taken by Italy ($X), with a 15% share of total imports. It was followed by the United States, with a 12% share.

From 2012 to 2022, the average annual rate of growth in terms of value from Indonesia stood at +3.9%. The remaining supplying countries recorded the following average annual rates of imports growth: Italy (+3.4% per year) and the United States (+16.0% per year).

Import Prices by Country

The average unmanufactured tobacco import price stood at $X per ton in 2022, increasing by 36% against the previous year. In general, the import price, however, continues to indicate a perceptible slump. The most prominent rate of growth was recorded in 2016 when the average import price increased by 40%. The import price peaked at $X per ton in 2012; however, from 2013 to 2022, import prices stood at a somewhat lower figure.

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

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Ecuador (+5.3%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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