SPAIN
TOBACCO IN SPAIN
Brief contextualization of the importance of Tobacco in Spain
TOBACCO PRODUCTION IN EUROPE
(% of European Tobacco production)pain still retains an important role in European tobacco production. Specifically, the country is the second largest tobacco producer of the old continent. The roots of tobacco can be traced as far back as the trip of Christopher Columbus in 1492. Spain was also the trigger of tobacco in Europe. It was the French ambassador in the country who brought the plant to the queen, Catherine of Medicis, thus spreading the use of the plant in the continent. In 2016, the country’s smokers generated over US$ 15 billion in tobacco related revenue, contributing to the State’s coffers with over US$ 9.9 billion. Imports of tobacco products in 2017 achieved a value of US$ 1.5 billion, rising 16.5% compared with the previous year. Revenue could be further increased if the illicit trade market were to be erased. The Government is estimated to be losing over US$ 400 million a year in tax revenue due to this situation. The country has been one of the most stable regarding tobacco leaf production: the decrease of production between 2009-2017 was 16.3%, less than half of the European average of 38.2%. Extremadura is the principal tobacco producing region in the country, accounting for over 90% of the total tobacco output.
Sources: KPMG, CORESTA, UN Comtrade, FAO, Euromonitor International, Institute for Agricultural Economics, Tobacco and Nicotine Database and ITGA.
Spain, the country from which tobacco was brought into the French royal court, is still the second largest European tobacco producing country
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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PORTUGAL 30%
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POLAND 18%
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FRANCE 11%
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GERMANY 10%
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BELGIUM 8%
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OTHERS 23%
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PORTUGAL 26%
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POLAND 20%
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ITALY 12%
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GERMANY 12%
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FRANCE 9%
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OTHERS 21%