Top 20 Tobacco Growing Countries in the World
In this article, we are going to discuss the top 20 tobacco growing countries in the world. You can skip our detailed analysis of the global tobacco market, the heavy investments in marketing by tobacco companies, and the rising popularity of flavored tobacco, and go directly to the Top 5 Tobacco Growing Countries in the World.
Tobacco was first used by the people of pre-Columbian Americas. Archeological studies suggest that the Maya people of Central America started using tobacco leaves as far back as the 1st century BC, mainly for smoking in sacred and religious ceremonies. By the time Columbus arrived in the New World in 1492, the Native Americans were already cultivating and smoking tobacco in pipes, cigars, and snuff. Although Cristopher Columbus brought with him a few tobacco leaves and seeds back to Europe, most Europeans didn't get their first taste of the plant until the mid-16th century, when adventurers and diplomats like France's Jean Nicot – for whom nicotine is named – began to popularize its use. Tobacco was introduced to France in 1556, Portugal in 1558, Spain in 1559, and finally England in 1565. By the early 17th century, smoking was common in all of Europe’s maritime nations, and their colonial empires soon carried tobacco all over the world.
Global Tobacco Market:
As we mentioned in our article – Top 20 Most Valuable Tobacco Companies in the World – the global tobacco market is expected to reach $1.049 trillion by 2030, with a CAGR of 2.1% during the forecast period. The market is fuelled by a growing demand from developing nations, coupled with the rising proliferation of next-generation products (NGPs) across the globe. The high marketing expenditure and discounting of products undertaken by major tobacco companies is also adding to the growth of the industry.
While tobacco consumption is leveling off and even decreasing in some countries, the number of people smoking is still increasing globally, and smokers are smoking more than before. An estimated 1.3 billion people worldwide use tobacco products, 80% of whom are in low- and middle-income countries.
Heavy Investments in Marketing:
The WHO Framework Convention on Tobacco Control (FCTC) has led to widespread restrictions on tobacco advertising, promotion, and sponsorship around the world. This, coupled with the evidence of the causal role of marketing in the tobacco epidemic, has inspired more than half the countries worldwide to ban some forms of tobacco marketing.
Yet, tobacco companies have found creative ways to maneuver their way around these barriers, using a variety of marketing strategies to create demand for cigarettes and other tobacco products by urging the youth to experiment, reducing smokers’ motivation to quit, and encouraging former smokers to take it up again. According to the Federal Trade Commission, in 2020 alone, the American tobacco industry spent over $8.4 billion on marketing for cigarettes and smokeless tobacco, spending more at the point-of-sale than anywhere else. They spent nearly $66 million on advertisements at the point of sale alone.
However, this hasn’t been without consequences. In September 2023, the e-cigarette company Juul, which at the height of its success dominated the market with its sweet flavors, agreed to pay $438.5 million in a settlement with 33 states and one territory over marketing its product to teens. The case ends major litigation over claims about the marketing of e-cigarettes to adolescents, resolving thousands of lawsuits and amounting to billions of dollars in payouts to states, cities, and people.
Sales of Juul products were sky high a few years ago and the company was even eyeing a market valuation of around $38 billion. However, it was discovered that Juul use among teens and young adults spiked heavily from 2018 to 2019. An estimated 27.5% of high schoolers reported using e-cigarettes during the period, with more than half naming Juul as their brand of choice. To add to the company’s woes, the FDA banned Juul products on U.S. shelves last summer, citing a lack of evidence demonstrating their overall safety. The regulator also noted Juul’s ‘disproportionate role in the rise in youth vaping.’
The Rising Popularity of Flavored Tobacco:
Flavors improve the taste and mask the harshness of tobacco, making flavored tobacco products more appealing and easier to smoke for beginners, who are often young. In 2022, cigars were the second most commonly used tobacco product among U.S. middle and high school students. The availability of flavors in cigars that are prohibited in cigarettes (such as cherry), and the fact that they are commonly sold as a single stick, has raised concerns that these products may be especially appealing to youth. According to a 2021 survey by the CDC, among middle and high school students who smoked cigars in the previous 30 days, 44.4% reported using a flavored cigar during that time.
A popular name among the machine made, flavored cigars is Middleton’s Black and Mild. Designed for the occasional smoker, these pipe tobacco cigars boast a smoke smooth enough to satisfy an aficionado in a pinch. Owned by Altria Group, Inc. (NYSE:MO), Black & Mild cigars are available in a variety of flavors like apple, cherry, cream, and more.
The John Middleton Co., a famous name in the pipe tobacco and machine cigars industry, was acquired by the Richmond-based Altria Group, Inc. (NYSE:MO) in 2007 in a deal worth $2.9 billion, thus enabling the tobacco giant to break into the growing American cigar business as it tried to expand beyond the shrinking U.S. cigarette market. The net cost of the acquisition of Middleton, maker of Black & Mild cigars, from the privately held Bradford Holdings was $2.2 billion, after deducting $700 million in tax benefits arising from the deal.
Altria Group, Inc. (NYSE:MO) ranks among the Largest Tobacco Companies in the World by Market Cap.
With that said, here are the Largest Tobacco Growing Countries in the World.
Methodology:
To collect data for this article, we have referred to FAOSTAT, looking for the Countries that Grow the Most Tobacco. The following countries have been ranked by their respective land areas dedicated to tobacco production (measured in hectares) in 2021.
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20. Ivory Coast
Total Area Dedicated to Tobacco Production: 15,979 ha
Ivory Coast is a significant producer and consumer of tobacco in Africa, with an estimated 9.4% of the adult population classified as smokers. However, the West African nation has taken significant steps to reduce the smoking rate among its people. In fact, C?te d’Ivoire became the first country in Africa to require plain packaging on tobacco products in 2022.
19. North Macedonia
Total Area Dedicated to Tobacco Production: 16,617 ha
North Macedonia has a long tradition of cultivating and exporting oriental tobacco, mainly of the types Prilep, Jaka, and Basma. Due to the large number of families working in tobacco agriculture, it also receives the largest share of crop subsidies, comprising on average a quarter of total agricultural subsidies for the period 2008 – 2019.
18. Cuba
Total Area Dedicated to Tobacco Production: 16,682 ha
Cuban cigars have long been a symbol of luxury and prestige, and the country produces some of the Most Expensive Cigars in the World. Due to consistently warm temperatures, high humidity, and regular rainfall, Cuba has excellent conditions for growing tobacco and it has been a mainstay crop for thousands of years.
Cuba is placed among the Countries that Produce the Best Tobacco in the World.
17. Thailand
Total Area Dedicated to Tobacco Production: 21,059 ha
Tobacco leaves are produced in 20 provinces in the North and Northeast of Thailand and last year, around 50% of Thai tobacco farmers grew burley, while 26% grew turkish leaf, and 24% grew virginia leaf. Most of this produce supplies the local market, monopolized by the Tobacco Authority of Thailand under government supervision for setting quotas and producing cigarettes.
Thailand is included among the Top Producers of Tobacco in Asia.
16. Uganda
Total Area Dedicated to Tobacco Production: 21,998 ha
Tobacco growing and manufacturing in Uganda was introduced in the 1920s by British American Tobacco, and around 75,000 of the nation’s farmers are now involved in tobacco agriculture, based mainly in the northwest and southwest of the country.
15. Philippines
Total Area Dedicated to Tobacco Production: 28,380 ha
First introduced in the 1950’s, tobacco is widely grown in various provinces in the Philippines, with the industry supporting over 2 million jobs nationwide. The country exported 53% of its total tobacco produced in 2022, while 47% was supplied to local tobacco manufacturers.
14. Pakistan
Total Area Dedicated to Tobacco Production: 47,332 ha
Although tobacco is grown on only about 0.23% of total irrigated land of Pakistan, the crop plays an important role in the country’s economy by generating income and employment for over 50,000 farmers in all four provinces. However, the total land area under tobacco cultivation has been rapidly decreasing over the last decade, mainly due to climate change and negligence by the government authorities.
13. Bangladesh
Total Area Dedicated to Tobacco Production: 47,523 ha
The cultivation of tobacco is increasing alarmingly in Bangladesh, with the crop now being grown in every part of the country. Farmers are encouraged to continue and expand tobacco cultivation with various incentives, including loans and buyback guarantees.
12. Argentina
Total Area Dedicated to Tobacco Production: 53,840 ha
Argentina stands among the Largest Tobacco Producers in South America, with the country producing 95.6 thousand tons in 2022, representing approximately 1.7% of the global production of tobacco of 5.8 million tons. Most of the tobacco cultivation happens in the north, with the provinces of Jujuy, Salta, and Misiones taking the lead.
11. North Korea
Total Area Dedicated to Tobacco Production: 56,995 ha
The tobacco industry plays a significant role in the North Korean economy, with around 2.3% of the country’s total arable land dedicated to cultivating the cash crop. North Korea’s counterfeit cigarette production capacity is estimated to exceed two billion packs a year, and is a major source of income for the regime.
10. Tanzania
Total Area Dedicated to Tobacco Production: 80,678 ha
Tobacco has been grown in Tanzania since the 1950s and is an important source of foreign exchange for the country. Tanzania produced 125 million kg of tobacco in 2023 and for the first
time, more than 50% of this produce was bought and sold abroad by local companies.
9. Turkey
Total Area Dedicated to Tobacco Production: 83,166 ha
Tobacco was introduced to the Ottomans by the Spanish in the 17th century, and the country is now the world’s largest producer of aromatic oriental tobacco – a small-leafed variety which is sun-cured. Around 400,000 Turks are dependent on the tobacco industry for their livelihood.
8. Mozambique
Total Area Dedicated to Tobacco Production: 91,469 ha
Tobacco cultivation has been considered a mainstay of Mozambique’s economy and the country exported $49.4 million of it in the first nine months of 2023, a quarter less than in the previous year. Most of this tobacco is grown in the regions of Tete and Niassa, representing over 89% of the country’s total production.
7. United States of America
Total Area Dedicated to Tobacco Production: 95,730 ha
Although America has significantly decreased cultivating tobacco since the 1980s, it still ranks among the largest producers of the crop. North Carolina and Kentucky are the States that Grow the Most Tobacco in America.
The total U.S. annual tobacco consumption was recorded at 237,079 tons in 2020, putting it among the Countries with the Highest Tobacco Consumption.
6. Malawi
Total Area Dedicated to Tobacco Production: 100,962 ha
Tobacco is the backbone of the Malawian economy, historically generating about 70% of the country’s export revenue and now accounting for over 50%. In 2015, tobacco farming took up more than 5% of all of Malawi's farming land – the highest percentage anywhere in the world at that time.
Malawi ranks among the Largest Producers of Burley Tobacco in the World.
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Disclosure: None. Top 20 Tobacco Growing Countries in the World is originally published on Insider Monkey.