Tobacco exporters expect lower shipments offset by 25% revenue hike

Brazil is expected to export less tobacco in 2024 but earn up to 25% more compared to 2023, when the country shipped $2.72 billion worth of the product. This estimate comes from Deloitte, based on data from the Tobacco Industry Interstate Union (SindiTabaco). Projections for 2024 indicate a 15% to 10.1% drop in volume. However, the value of exports is anticipated to increase by 20.1% to 25%, potentially exceeding $3 billion.

“Based on data consolidated through July, we see a trend of lower volumes, yet the revenue remains stable compared to 2023,” said Iro Schünke, president of SindiTabaco.

“The highest volume of shipments typically occurs in the second half of the year, particularly in the last three months. We expect to see these figures more clearly then, and we will likely surpass the $3 billion mark in 2024,” he projected.

Brazil has been the world’s largest exporter of tobacco since 1993. These results maintain Brazil’s tradition as the leading global tobacco exporter. “In 2024, tobacco is expected to significantly boost the trade balance, particularly for Rio Grande do Sul. This is especially important as the region’s agribusiness sector has been hit hard by floods in recent months, which coincided with a slower period for tobacco production,” Schünke noted.

According to the Ministry of Development, Industry, and Commerce (MDIC/ComexStat), 227,700 tonnes of tobacco were shipped from January to July, a 14.58% decrease compared to the same period in 2023. In terms of value, exports totaled $1.44 billion, a slight decline of 0.15% compared to the previous year. The top importers during this period were Belgium ($353 million), China ($302 million), the United States ($145 million), Indonesia ($76 million), and Egypt ($54 million).

The chart below uses information derived from DataLiner, a Datamar-powered maritime intelligence service, to provide key insights on Brazil’s tobacco exports between January 2021 and June 2024. Readers may request a demo using the link below.

Tobacco Exports from Brazil | Jan 2021 – Jun 2024 | TEUs

Source: DataLiner (click here to request a demo)

This year, tobacco accounts for 0.73% of Brazil’s total exports and 11.70% of shipments from Rio Grande do Sul, the state that produces and exports the most tobacco in the country. Additionally, it accounts for 4.55% of exports from the Southern Region.

Source: Correio do Povo

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