HS Code:
The Tobacco and manufactured tobacco substitutes; products containing nicotine category (HS Code: 24) encompasses raw tobacco, cigars, cigarettes, chewing tobacco, snuff, and other nicotine-containing products such as e-liquids for vaping. This category is heavily regulated globally due to health concerns, with trade influenced by stringent policies, taxation, and anti-smoking campaigns. It is a significant sector in global trade, balancing economic contributions against public health priorities.
Total Trade Volume
USD 32.5 billion
Data from 2022
Source
United Nations Comtrade Database, World Trade Organization (WTO)
USD 2.8 billion
8.6% of total trade of total trade
Increasing
USD 2.5 billion
7.7% of total trade of total trade
Stable
USD 2.1 billion
6.5% of total trade of total trade
Increasing
USD 1.9 billion
5.8% of total trade of total trade
Stable
USD 1.7 billion
5.2% of total trade of total trade
Decreasing
Average Rate
35.6%
Highest Rate
Up to 150% (in countries like Australia and some EU nations)
Lowest Rate
0-5% (in free trade zones or under specific trade agreements)
Shift to alternative nicotine products
Increased demand for e-cigarettes and nicotine pouches, reducing traditional cigarette trade in developed markets
2020-2022
Stricter regulations and taxation
Higher tariffs and regulations in many countries are reducing legal trade volumes while boosting illicit trade
2018-2022
Growth in emerging markets
Rising tobacco consumption in Africa and parts of Asia is driving export growth for major producers like Brazil and India
2019-2022
Several countries adopted stricter measures under the WHO FCTC, including higher taxes and bans on flavored nicotine products to curb usage among youth.
November 2022
Expected to reduce legal trade volumes by 5-10% in participating countries over the next 3 years, while potentially increasing black market activity.
The European Union enforced a complete ban on menthol cigarettes as part of its Tobacco Products Directive, affecting intra-EU trade and exports to the region.
May 2020
Significant drop in menthol cigarette exports to the EU, redirecting trade flows to other regions and increasing demand for alternatives like e-liquids.
Reports from the WTO and Interpol highlighted a surge in illicit tobacco trade, driven by high taxes and border restrictions during the COVID-19 pandemic.
Mid-2021
Undermines legal trade, with losses estimated at USD 3 billion annually for governments and legitimate businesses.