Canary Islands Tobacco Exports Surge Past €15 Million, Outpacing Banana Sales

Tobacco exports from the Canary Islands have experienced a remarkable surge, tripling in value over the past three years to reach an impressive €127 million in 2024. This significant growth has allowed tobacco to surpass banana exports, which totaled €112 million, as reported by Afi for the Tobacco Council, the representative body for the industry. The shift in export dynamics highlights the evolving economic landscape of the region, where traditional agricultural products are increasingly being complemented by the burgeoning tobacco sector.

Economic Contributions of the Tobacco Sector

The Canary Islands play a pivotal role in the tobacco industry, contributing a substantial 68% of the industrial added value, which is estimated at €195 million. This figure underscores the importance of tobacco not only as a cash crop but also as a vital component of the local economy. When considering the broader economic effects, the total impact of the tobacco industry in the region amounts to a staggering €465 million. In the context of Spain, the tobacco industry contributes €1.8 billion to the national GDP and supports approximately 31,000 direct jobs. When factoring in indirect effects, these figures rise significantly to €3.755 billion and 61,500 jobs, illustrating the extensive reach of this sector.

Within the Canary Islands, the tobacco sector is responsible for creating 790 direct jobs and an additional 4,455 indirect jobs. This employment generation is crucial for the local communities, providing livelihoods and stability. Notably, 34% of the total tobacco production in the islands is exported, which represents 4.8% of the islands’ total exports in 2024. This marks a substantial increase from just 0.3% in 2007, indicating a significant shift in the export profile of the region.

Export Performance and Economic Metrics

In a remarkable performance, tobacco exports from January to May 2025 reached €61 million, surpassing the €49 million recorded during the same period in the previous year. This upward trend reflects the growing demand for Canary Islands tobacco in international markets. Each worker in the tobacco sector generates an impressive €142,000 annually in exports, which is significantly higher than the average of €2,800 for the overall economy of the islands. This disparity highlights the efficiency and productivity of the tobacco industry compared to other sectors.

The tobacco industry also plays a crucial role in the national economy, contributing €10.1 billion in tax revenue across Spain. This substantial tax contribution underscores the importance of the tobacco sector not only for local economies but also for the national fiscal landscape. Industry expert Vizcaíno has emphasized these figures, showcasing the tobacco sector’s vital role in supporting public services and infrastructure through its tax contributions.

Balancing Tradition and Modernity in Tobacco Production

Águeda Agulló, the General Director of the Tobacco Council, has noted that the sector is undergoing a continuous process of transformation and innovation, driven by evolving regulatory, technological, and sustainability demands. This adaptability is essential for maintaining competitiveness in a global market that is increasingly focused on responsible production practices. Gonzalo Salafranca, President of the Tobacco Council, emphasized the unique blend of historic artisanal production and modern industrial technology in the Canary Islands. This combination positions the archipelago as a leader in the tobacco value chain, integrating tradition with specialization and advanced processes.

The commitment to innovation is evident in the practices adopted by local producers, who are increasingly incorporating sustainable methods into their operations. This not only enhances the quality of the product but also aligns with global trends towards environmentally responsible agriculture. The ability to marry traditional techniques with modern advancements is a hallmark of the Canary Islands’ tobacco industry, setting it apart from competitors.

Key points

• Tobacco exports from the Canary Islands reached €127 million in 2024, surpassing banana exports of €112 million.
• The tobacco industry accounts for 68% of the industrial added value in the region, totaling €195 million.
• Overall economic impact of the tobacco sector in the Canary Islands is estimated at €465 million.
• The industry supports 790 direct jobs and 4,455 indirect jobs in the archipelago.
• 34% of tobacco production in the Canary Islands is exported, representing 4.8% of total exports in 2024.
• Between January and May 2025, tobacco exports totaled €61 million, exceeding the previous year’s €49 million.
• The tobacco industry contributes €10.1 billion in tax revenue in Spain.