Latin America and the Caribbean: Tobacco Making Machinery Market 2023

Tobacco Making Machinery Market Size in Latin America and the Caribbean

For the sixth consecutive year, the Latin American tobacco making machinery market recorded growth in sales value, which increased by 86% to $X in 2021. In general, consumption continues to indicate a significant expansion. Over the period under review, the market attained the maximum level in 2021 and is likely to see gradual growth in the near future.

Tobacco Making Machinery Production in Latin America and the Caribbean

In value terms, tobacco making machinery production expanded rapidly to $X in 2021 estimated in export price. Overall, production, however, saw a mild contraction. The pace of growth appeared the most rapid in 2017 when the production volume increased by 11%. Over the period under review, production attained the peak level at $X in 2012; however, from 2013 to 2021, production failed to regain momentum.

Tobacco Making Machinery Exports

Exports in Latin America and the Caribbean

In 2021, after two years of growth, there was significant decline in overseas shipments of machinery for the preparation or making up of tobacco, when their volume decreased by -12.6% to X units. In general, exports, however, enjoyed a strong expansion. The most prominent rate of growth was recorded in 2020 with an increase of 127%. The volume of export peaked at X units in 2014; however, from 2015 to 2021, the exports failed to regain momentum.

In value terms, tobacco making machinery exports reduced rapidly to $X in 2021. Over the period under review, exports saw a pronounced downturn. The most prominent rate of growth was recorded in 2019 when exports increased by 84%. The level of export peaked at $X in 2014; however, from 2015 to 2021, the exports remained at a lower figure.

Exports by Country

Honduras was the major exporting country with an export of about X units, which finished at 52% of total exports. Chile (X units) held a 23% share (based on physical terms) of total exports, which put it in second place, followed by Paraguay (11%) and the Dominican Republic (7.6%). The following exporters - Colombia (X units) and Trinidad and Tobago (X units) - each reached a 4.3% share of total exports.

Honduras was also the fastest-growing in terms of the machinery for the preparation or making up of tobacco exports, with a CAGR of +56.8% from 2012 to 2021. At the same time, Trinidad and Tobago (+46.9%), Colombia (+10.4%), Paraguay (+6.5%) and the Dominican Republic (+3.2%) displayed positive paces of growth. By contrast, Chile (-2.1%) illustrated a downward trend over the same period. While the share of Honduras (+51 p.p.) and Trinidad and Tobago (+1.8 p.p.) increased significantly in terms of the total exports from 2012-2021, the share of the Dominican Republic (-2 p.p.) and Chile (-24.4 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest tobacco making machinery supplying countries in Latin America and the Caribbean were Chile ($X), Honduras ($X) and the Dominican Republic ($X), with a combined 64% share of total exports.

Honduras, with a CAGR of +39.4%, saw the highest rates of growth with regard to the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

The export price in Latin America and the Caribbean stood at $X per unit in 2021, waning by -11.9% against the previous year. Over the period under review, the export price saw a deep contraction. The pace of growth appeared the most rapid in 2018 when the export price increased by 128% against the previous year. Over the period under review, the export prices reached the maximum at $X per unit in 2019; however, from 2020 to 2021, the export prices remained at a lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2021, the country with the highest price was Colombia ($X per unit), while Trinidad and Tobago ($X per unit) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the Dominican Republic (+8.1%), while the other leaders experienced a decline in the export price figures.

Tobacco Making Machinery Imports

Imports in Latin America and the Caribbean

Tobacco making machinery imports skyrocketed to X units in 2021, increasing by 46% on 2020 figures. Overall, imports continue to indicate significant growth. The most prominent rate of growth was recorded in 2018 with an increase of 169%. Over the period under review, imports hit record highs in 2021 and are expected to retain growth in the immediate term.

In value terms, tobacco making machinery imports contracted sharply to $X in 2021. Over the period under review, imports, however, recorded a noticeable setback. The pace of growth appeared the most rapid in 2018 when imports increased by 76%. As a result, imports attained the peak of $X. From 2019 to 2021, the growth of imports failed to regain momentum.

Imports by Country

Chile dominates imports structure, finishing at X units, which was approx. 89% of total imports in 2021. The following importers - Brazil (X units), Cuba (X units) and the Dominican Republic (X units) - together made up 9% of total imports.

Chile was also the fastest-growing in terms of the machinery for the preparation or making up of tobacco imports, with a CAGR of +109.6% from 2012 to 2021. At the same time, Cuba (+24.2%) and Brazil (+20.4%) displayed positive paces of growth. By contrast, the Dominican Republic (-5.7%) illustrated a downward trend over the same period. Chile (+88 p.p.) significantly strengthened its position in terms of the total imports, while Brazil and the Dominican Republic saw its share reduced by -2.7% and -36.2% from 2012 to 2021, respectively. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the largest tobacco making machinery importing markets in Latin America and the Caribbean were the Dominican Republic ($X), Brazil ($X) and Cuba ($X), together accounting for 68% of total imports.

In terms of the main importing countries, Cuba, with a CAGR of +14.5%, saw 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

In 2021, the import price in Latin America and the Caribbean amounted to $X per unit, dropping by -52.3% against the previous year. Over the period under review, the import price continues to indicate a dramatic curtailment. The most prominent rate of growth was recorded in 2017 an increase of 11% against the previous year. Over the period under review, import prices reached the peak figure at $X per unit in 2012; however, from 2013 to 2021, import prices failed to regain momentum.

Prices varied noticeably country of destination: the country with the highest price was the Dominican Republic ($X per unit), while Chile ($X per unit) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by the Dominican Republic (+11.1%), while the other leaders experienced a decline in the import price figures.

Source: IndexBox Market Intelligence Platform

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