Tobacco

Furniture & Trade

This section discusses the current status and historical trends related to imports and exports in the tobacco industry. It covers trends for the industry in North Carolina, the U.S. and top competing states and shows North Carolina’s footprint in relationship to the U.S. industry and other states. This analysis is based on our NAICS-based definition of the tobacco industry using data compiled by the U.S. Census Bureau, Foreign Trade Division available on the USA Trade Online website. Links are provided to the underlying data in the form of interactive tables, charts and maps throughout this section.

Overview

Exports in the tobacco products value chain have declined steadily in both the United States and in North Carolina specifically over the last decade. In 2002, the U.S.’s total export value was more than $1.96 billion. By 2012 this number dropped to $526.63, a decline of 372%. On the other hand, during the four year period 2008 to 2012 total U.S. imports of tobacco products have increased by 25.35% (from $650.49 – $871.35 million). However, North Carolina’s total imports have fallen by 36.7%.

While significant export declines have occurred in North Carolina’s tobacco products, the state is still currently the largest overall exporter. In 2002 North Carolina was the second largest exporter of tobacco products with only a 23.5% share of all U.S. exports. Interestingly, amidst its export decline of 30.25% (from $461.83 in 2002 to $332.14 million in 2012), North Carolina became the largest U.S. exporter of tobacco products and increased its total state share to 61.2% in 2012 – a result of even more substantial declines experienced in Virginia and Georgia.

By far the largest export-trading partner for North Carolina has been Japan over the course of the last decade, and in 2012 Japan bought 91.2% of all North Carolina’s exported tobacco products. Other buyers of North Carolina’s tobacco products have been United Arab Emirates, Russia, Turkey, Taiwan and Canada, but none have come close over the decade 2002 to 2012 to Japan in its amount purchased. Export-trading partners for the U.S. as a whole in 2012 largely mirrored that of North Carolina, with Mexico being one key difference – in that Mexico was the second largest buyer of U.S. tobacco products but did not do business with the state of North Carolina.

North Carolina is not a substantial importer of tobacco products, which reflects its competency as a state to procure its own needed inputs for production of tobacco products. As the 9th largest state importer in 2008 with a total value of $18.09 million and 2.8% share of total U.S. imports, it decreased its total amount imported in 2012 to $11.45, and fell to a 1.3% share of total U.S. imports. North Carolina’s largest import-trading partners in 2012 were France ($3.01 million) and Switzerland ($2.68 million). In 2010 North Carolina sourced $9 million and $7.6 million from Dominican Republic and Honduras respectively; however, imports from these countries in 2012 fell to only $883 thousand and $15 thousand. As a nation, in 2012 the U.S.’s largest import-trading partners were Dominican Republic, Nicaragua, Honduras, Canada, South Korea and Turkey.

top

North Carolina
Present (2012)
  • Exports
    • In 2012 North Carolina’s total export value for its tobacco products was roughly $323 million (T6a).
    • Overall, exports in 2012 were highly concentrated with 91.2% of all exports sold to Japan ($293.64 million) (T6a).
    • Only six other countries had export values in the millions: UAE $9.95 million; Russia $5.85 million; Turkey $3.23 million; Taiwan $1.82 million; Canada $1.79 million; New Zealand $ 1.762 million (T6a).
  • Imports
    • Total 2012 import value for tobacco products imported into North Carolina was $11.45 million (T7a).
    • Combined imports from France and Switzerland made up 59.7% ($5.7 million) of all tobacco imports into North Carolina in 2012 (T7a).
    • Other important source countries for North Carolina tobacco product imports were: Brazil 13.4% ($1.54 million); Singapore 9.7% ($1.12 million); Dominican Republic 7.7% ($883 thousand); Germany 6.3% $716 thousand; Denmark 3.6% ($410 thousand) (T7a).
Historical Trends
  • Exports (2002 v. 2012)
    • The share of total exports to Japan has risen substantially; in 2002 it was 63.1% while in 2012 it was 91.2%. However, total export value has only increased marginally (roughly $2 million) (T6a).
    • Most other countries buying North Carolina’s tobacco products in 2002 have significantly reduced their investments by 2012 – such as South Korea (7.2% - 0%); Turkey (5.4% - 1%); Canada (3.9% - 0.6%); Taiwan (2.7% - 0.6%); and Hong Kong (2.5% - 0%) (T6a).
  • Imports (2008 v. 2012)
    • Similar to export trading partners, North Carolina’s sourcing of tobacco product imports have experienced growing consolidation on a fewer number of countries, albeit concentration is not as high as exports. For example, shares of imports from France went from 0% in 2008 to 12.5% in 2010 to 26.3% in 2012, and shares of the same in Switzerland have gone from 13.9% in 2008 to 23.4% in 2012.
    • Offsetting growth in imports from France and Switzerland, North Carolina has reduced its reliance on many other countries between the periods 2008 to 2012: Ukraine 17.9% - 1.0%; Denmark 17.3% - 3.6%; U.K. 7.9% - 0% (T7a).

top

United States
Present (2012)
  • Exports
    • As North Carolina is the largest producer of tobacco products in the U.S. it is unsurprising that its largest export partner, Japan, is also the largest export partner for the U.S. In 2012, the total U.S. export value of tobacco products to Japan was just over $295 million – roughly only $2 million over the total value exported from N.C. The total share of exports to Japan of all U.S. exports in 2012 of tobacco products was 56.1% (T6b).
    • After Japan, the next six largest purchasers of U.S. tobacco products were: Mexico $43.8 million (8.3%); Canada $ 29.2 million (5.5%); Dominican Republic $24.9 million (4.7%) Russia $21.3 million (4.1%); and UAE $ 12.7 million (2.4%) (T6b).
    • Total export value of U.S. tobacco products to all countries in 2012 was $526.6 million (T6b).
  • Imports
    • Total import value of tobacco products from all countries into the U.S. in 2012 was $871.35 million (T7b).
    • The Dominican Republic was the largest import-trading partner for the U.S. in 2012 with a 46.9% share of all U.S. tobacco product imports – a total value of $408.4 million (T7b).
    • The next six largest import-trading partners for the U.S. in 2012 were: Nicaragua $112.9 million (13%); Honduras $82.25 million (9.4%); Canada $65.25 million (7.5%); South Korea $34.36 (3.9%); Turkey $28.49 million (3.3%); and Germany $20.48 million (2.4%) (T7b).
    • (C6b).(T6b; M6b).(T7b; M7b). (T7a).(C6a).(T6a; M6a).(C7a). (T7a; M7a).(T6c; C6c). (T7c; C7c).
Historical Trends
  • Exports (2002 v. 2012)
    • U.S. export values of tobacco products have declined significantly in the last decade, falling from $1.96 billion in 2002 to nearly a fourth of that size in 2012 at $526.63 million (T6b).
    • All of the U.S.’s top 20 export-trading partners in 2002 have significantly reduced their purchases of U.S. tobacco products in 2012. In fact, Mexico, the 21st largest buyer in 2002, is one of the only countries in the world to increase their 2012 purchase ($43.82 million) over their 2002 order ($11.17 million).
  • Imports (2008 v. 2012)
    • U.S. tobacco imports have increased by more than 25% between 2008 and 2012, from $650.5 million in 2008 to $871.4 million in 2012 (T7b).
    • Unlike the trend in exports, import-trading partners have largely increased their year-over-year sales to the U.S. For example, Dominican Republic the largest U.S. trading partner in 2008 ($269.1 million) and Nicaragua the third largest in 2008 ($62.44 million) have each nearly doubled the value of their goods sold to the U.S. in 2012; $408.37 million and $112.9 million, respectively (T7b).

top

Top U.S. States
Present (2012)
  • Exports
    • North Carolina was by far the largest exporter of tobacco products in 2012 with a total export value of $322.14 million and a 62% share of the U.S. total exports (T6c).
    • The second largest state producer in 2012 was Florida at $48.58 million (9.2% share of U.S. total). Florida is followed by Virginia, Georgia, Texas and California all of which had export values in the $20-$27 million range (T6c).
    • In 2012 of the 32 states registering exports of tobacco products, 18 states exported less than $1 million in value, 11 of which were under $100 thousand (T6c).
  • Imports
    • In 2012 Florida spent more on imports for tobacco products than any other state. At a 56.7% share of all U.S. imports, or a value of $494.41 million, it was the by and large the biggest importer (T7c).
    • The remaining 43.3% share of U.S. imports in 2012 experienced some concentration, but largely was diffused across 40 other states. For example, the next five largest state importers, Virginia, New York, Alabama, Kansas and Pennsylvania, combined accounted for only 24.5% of U.S. total imports (a total value of $213.6 million) (T7c).
    • North Carolina was the 11th largest state importer of tobacco products in 2012 (T7c).
Historical Trends
  • Exports (2002 v. 2012)
    • With total decline in exports of more than 372% from 2002 to 2012, many states have seen their export value of tobacco products fall significantly. The starkest examples of large export declines were Virginia ($967.18 – $ 26.89 million), North Carolina ($461.83 – $322.14 million) and Georgia ($442 – $26.35 million).
    • However, with the largest losses in only a few states, numerous other states – like Florida, Texas, California, Illinois and Pennsylvania – have seen their export values increase. Florida experienced the most significant increase from a 2002 value of $21.32 million (1.1% of U.S. total) to $48.58 million in 2012 (9.2% of U.S. Total) (T6c).
  • Imports (2008 v. 2012)
    • In 2008 Florida was still the U.S.’s largest importer of tobacco products, however, remarkably in the four years to 2012 Florida increased the total value of its imports by 41% (from $293.1 million in 2008 to $494.41 in 2012) (T7c).
    • Virginia, although from a lower base in 2008, but still quite remarkable, increased its 2008 to 2012 total imports by a factor of 22; from $2.724 million in 2008 to $61.4 million in 2012. Going from the 17th largest importer to the 2nd (T7c).
    • As total U.S. imports increased from 2008 – 2012, a number of states saw their import numbers rise as well: New York, Kansas, Pennsylvania Kentucky and Nebraska to name a few. Nonetheless, with such large increases from Florida, 5 indeed other states saw their shares fall: e.g. New Jersey, California and North Carolina (T7c).

top

NC in the U.S. Economy
Present (2012)
  • Exports
    • North Carolina maintained its long standing position as U.S. leader in the tobacco value chain occupying the largest state share of tobacco products exports (T6c).
    • With export totals of more $273.56 than its closest competitor, Florida ($48.58 million), North Carolina ($322.14 million) had a very strong and competitive position in the U.S.’s export tobacco products market (T6c).
  • Imports
    • North Carolina’s role as an importer of tobacco products is substantially less pronounced than its role as an exporter.
    • In 2012 North Carolina was only the 11th largest importer with its total import value ($11.45 million) $482.96 million less than U.S.’s largest importer, Florida ($494.41 million) (T7c).
Historical Trends
  • Exports (2002 v. 2012)
    • Although North Carolina has experienced a 30.25% decline in its export of tobacco products between 2002 and 2012, it was still the largest overall state exporter in 2012 (T6c).
    • Additionally, due to even more substantial export declines of tobacco product exports in Virginia ($967.18 million to $26.89 million) and Georgia ($441.99 million to $26.14 million), North Carolina improved its competitive export position – commanding a 61.2% share of all U.S. exported tobacco products.
  • Imports (2008 v. 2012)
    • North Carolina decreased its imports by slightly more than 37% between 2008 and 2012 ($18.09 million to $11.45 million) (T7c).
    • Subsequently its total share of U.S. imports of tobacco products fell from 2.8% to 1.3% - in rank order: 9th – 11th (T7c).

top