CHINA
TOBACCO IN CHINA
Brief contextualization of the importance of Tobacco in China
CHINA
% of World Tobacco Productionhina is the most important player in the World Tobacco market. The country is the leading producer and consumer of tobacco products. China State Tobacco Monopoly is the biggest tobacco company in the world. With this data, it is safe to assure that the gold leaf has a huge impact on the country’s economy. Due to the weight the country has on the global tobacco leaf market, fluctuations in the demand or trade wars (such as the one currently raging between the US and China) sends shockwaves through the entire industry and no one is immune. Tobacco use can be traced to the 16th century. Cigarette sales in 2018 amounted to 2,375 billion units, representing an increase of +0.3% from the previous year, contributing over US$ 170 billion to Government revenues. The local market is dominated by domestic firms, which have started efforts for globalization. Tobacco growing in China is consolidated into three regions: Yunnan, Guizhou, and Sichuan. In these areas, the crop is a major source of employment and income as well as an important revenue stream to local governments. Some studies reveal the figure of 20 million farmers in the early 21st century. Growers appoint the high profits that the crop provides as one of the main motivations to grow tobacco. The crop is not the sole source of income for the majority of growers, however it is mostly grown for the lump sum of money its sale provides, complementing other cash and food crops cultivated.
Sources: Tobacco and Nicotine database, Food and Agriculture Organization of the United Nations (FAO), Hu, Mao, Ong et al.(2006), Hu & Lee (2016) and ITGA.
China is the most important player in the World Tobacco market. The country is the leading producer and consumer of tobacco products
EXPORT PARTNERS
This section aims at identifying the most important commercial partners in terms of Value and Quantity (Source: Calculated from data from UN Comtrade)
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INDONESIA 28%
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BELGIUM 24%
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EGYPT 9%
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UNITED ARAB EMIRATES 6%
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PHILIPPINES 4%
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OTHERS 29%
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BELGIUM 22%
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INDONESIA 21%
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EGYPT 10%
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UNITED ARAB EMIRATES 8%
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VIETNAM 4%
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OTHERS 35%