Brazil 4 Business

Tobacco industry

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After slight decrease in cigarette worldwide sales between 2005 and 2010 (~ 5%), currently the data is constant and global consumption is approximately 5.7 trillion units a year. Trends are for reduction / stabilization of consumption in developed and developing countries, and increasing in sub developed regions. 

Graphic - Production and tobacco consumption worldwide - 2012 (Thousand tons) Brazil is the second largest producer of tobacco products in a market of 6,500 million tons, produces 745 million (~ 11.5%), but consumes less than 12% of its own production. The surplus is exported to be manufactured in other countries.
 
In the chain of tobacco industry values, in Brazil, the processing step deserves to be highlighted because it is gradually assuming mechanized character, opening up possibilities for introduction of new technologies and the entire supply chain linked to it.

Production is polarized in the South (especially in Rio Grande do Sul), the region accounts for over 97% of the national volume. As a result, the processing plants are concentrated in this region. However, tobacco companies also have units in the Southeast, facilitating logistics to other regions.

The exports of this sector are destined mainly to Europe and Asia. The labour union (SINDITABACO) intermediates constant negotiations with the Federal Government on the granting of incentives relating to tax reduction in the export of products.

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