Harare — Zimbabwe’s tobacco export earnings recorded a marginal decline in 2025, but a sharp increase in demand from Europe and steady growth within African markets helped cushion the impact of reduced shipments to China, industry data show.
According to figures released by the Tobacco Industry and Marketing Board (TIMB), tobacco export revenues slipped by 0.7 percent from the previous year to US$1.36 billion as of mid-December. The slowdown was largely driven by a contraction in exports to China, Zimbabwe’s single largest tobacco market, where export earnings fell from US$953.2 million to US$819.3 million, representing a 14 percent decline.
Despite the drop, the Far East remained Zimbabwe’s dominant destination, accounting for about 60 percent of total tobacco export value, underscoring China’s continued strategic importance to the sector.
However, shifting demand patterns played a stabilising role. Europe emerged as the strongest growth market during the season, with tobacco export earnings to the European Union surging by 64.5 percent to US$169.6 million, up from US$103.1 million in the previous year. TIMB attributed the growth to rising demand among European manufacturers for Zimbabwe’s premium flue-cured Virginia tobacco, which is valued for its consistency, quality and blending characteristics.
Industry analysts say the strong European performance reflects both supply diversification by global manufacturers and Zimbabwe’s improving reputation for quality and traceability, following tighter regulatory oversight and improved agronomic practices. The trend also signals a gradual rebalancing of export markets after years of heavy dependence on China.
In addition to Europe, African markets continued to post steady growth, contributing to export stability amid volatility in Asia. Regional buyers have increasingly turned to Zimbabwean leaf to support local cigarette manufacturing and blending operations, benefiting from shorter supply chains and competitive pricing.
While the overall export value dipped slightly, sector experts note that the resilience shown this season highlights the importance of market diversification. Over-reliance on a single destination, particularly one as large as China, exposes the industry to demand shocks, pricing pressures and geopolitical risk.
Looking ahead, stakeholders believe sustained growth in Europe and Africa could help anchor export revenues, especially if complemented by value-addition strategies such as local processing and cut-rag exports. Policymakers have repeatedly indicated that expanding downstream processing remains a priority to maximise foreign currency earnings and job creation.
Zimbabwe is one of the world’s leading producers of flue-cured Virginia tobacco, and the crop remains the country’s single largest agricultural export. With global tobacco demand becoming more fragmented and regulated, industry observers say maintaining quality, compliance and diversified market access will be critical to sustaining long-term export performance.