Tobacco in 2024: The big picture
In 2024, Azerbaijan’s tobacco market remained relatively stable, despite ongoing shifts in consumer preferences, rising excise taxes, and regulatory developments. While smoking prevalence stayed largely unchanged and continued to be the main driver of cigarette sales, the legal cigarette market declined, mainly due to a significant increase in illicit trade. At the same time, alternative nicotine products, including e-vapour and heated tobacco, gained momentum, supported by new entrants and expanding distribution. The market overall is becoming more segmented and price-sensitive, shaped by both economic and social factors.
2024 key trends
Tobacco sales saw a marginal decline in 2024, primarily driven by the drop in legal cigarette volumes amid a rise in illicit trade. While other categories, such as heated tobacco and e-vapour products, continued to develop, their growth was not sufficient to compensate for the decline in the dominant cigarette category.
Competitive landscape
JTI Caucasus LLC was the leading and most dynamic company in tobacco in Azerbaijan in 2024 thank to its strong performance in the largest category, cigarettes. The company holds a high market share in cigarettes, driven by the success of its well-established premium and mid-priced brands, such as Winston and Sobranie and others, which enjoy strong consumer loyalty and wide distribution. JTI’s leadership is further supported by its consistent investment in retail visibility, pricing strategy, and brand strength. Notably, despite having no presence in modern categories such as heated tobacco, this has not hindered its market leadership.
Retail developments
Small local grocers remained the key distribution channel for tobacco in Azerbaijan in 2024 as it is the leading channel in the main category, cigarettes. This is primarily due to their wide accessibility all across the country, including regions. While the share of supermarkets, convenience stores and modern retailers in general is growing, small local grocers continued to play a dominant role in the distribution of tobacco products.
What next for tobacco?
Tobacco in Azerbaijan is expected to post positive dynamics over the forecast period, supported by several key factors. The primary driver will be the anticipated recovery of sales of legal cigarettes, as efforts to curb illicit trade take effect. Cigarettes will remain the dominant category in volume terms, sustained by a rather stable smoking prevalence and strong brand presence. In addition, heated tobacco is expected to grow significantly, particularly following Philip Morris International’s official market entry. Meanwhile, e-vapour products, which are not currently banned, will continue their upward trajectory - especially disposable products - driven by consumer demand and product innovation.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Azerbaijan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
If you're in the Tobacco industry in Azerbaijan, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Tobacco in Azerbaijan report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Tobacco in Azerbaijan?
- Which are the leading brands in Tobacco in Azerbaijan?
- How are products distributed in Tobacco in Azerbaijan?
- Which category is the most heavily taxed in Azerbaijan?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Azerbaijan?
- How has COVID-19 impacted demand?
- How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
- Where is future growth expected to be most dynamic?
Tobacco in Azerbaijan
Tobacco in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
What next for tobacco?
Legislation
Legislative overview
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Reduced harm
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Azerbaijan
KEY DATA FINDINGS
Sharp rise in illicit trade in 2024
JTI Caucasus LLC’s recovery driven by strategic focus on premium products
Small local grocers lead due to widespread accessibility and convenience
Stable performance due to steady smoking prevalence
Heated tobacco has strong potential to emerge as a major competitor to traditional cigarettes
Brands that invest in innovation, product design, and flavour diversification are well-positioned to outperform the market
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Azerbaijan
KEY DATA FINDINGS
Modest growth of a niche category
Strong brand potfolio ensures Cahan Tobacco International MMC leads cigars and cigarillos
Food/drink/tobacco specialists offer a wide range of products, trusted quality and expert advice
Mixed picture
Cahan Tobacco International MMC to maintain its lead
Limited innovation due to niche nature of products
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Azerbaijan
KEY DATA FINDINGS
Rapid growth of e-vapour products and noticeable slowdown in heated tobacco
PMI formally enters the heated tobacco market in 2024
Strong e-commerce growth
PMI’s arrival in heated tobacco set to reshape category dynamics
Further regulatory measures anticipated for e-vapour products
Innovation to play a key role in brand positioning and consumer loyalty
The following categories and subcategories are included:
Tobacco
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- Fine Cut Cigarettes
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- Cigarettes (Illicit+Legal)
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- Cigars
- Cigarillos
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- Pipe Tobacco
- Fine Cut Tobacco
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- Chewing Tobacco
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- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
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- Closed System Single Use
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- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
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- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
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- Tobacco Heating Devices
- Heated Tobacco
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- Nicotine Pouches
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- Closed System Single Use (Illicit+Legal)
- Closed System Cartridges (Illicit+Legal)
- E-Liquids (Illicit+Legal)
Tobacco
Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.
See all of our definitionsWhy buy this report?
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This report originates from Passport, our Tobacco research and analysis database.
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