Tobacco in Bangladesh was affected by a rise in VAT (value-added tax) in January 2025. On prices of cigarettes, the new VAT raised the per stick cost significantly. This price rise may impact the sales performance or see companies enjoy good profits from sales. However, retail volume sales of cigarettes declined in 2024 and companies may find the terrain harder still with higher prices. On the other hand, investment is rising among manufacturers and product variety may widen in 2025.
In 2024, tobacco saw a moderate decline in retail volume sales, and only a slight increase in retail current value sales. British American Tobacco Bangladesh and United Dhaka Tobacco (NBO Japan Tobacco) remained the leading players in cigarettes and, therefore, tobacco overall. Some companies faced declines in retail volume sales and/or difficulties in terms of production and marketing. E-vapour products registered fast-growing popularity in 2024, although a government ban on imports of e-cigarettes threatens the category. Meanwhile, high prices limited the popularity of cigars, while availability was low due to customs restrictions.
British American Tobacco Bangladesh remained the dominant company in cigarettes in 2024, with brands like Derby, Hollywood, Royal, Star, Pilot and Benson & Hedges. The company leverages a strong brand offer and wide distribution and established position in the market to lead the field.
Roadside tea stalls and traditional grocery retailers, led by small local grocers, overwhelmingly dominated the distribution of cigarettes and, therefore, tobacco products in Bangladesh. These outlets are widespread and highly accessible, often located in neighbourhoods, bus depots, rail stations and other busy public areas where people frequently gather. Their ubiquity, accessibility and consumer convenience make them indispensable for tobacco companies like British American Tobacco Bangladesh and United Dhaka Tobacco Co to maintain and grow their presence. The tobacco industry’s strategic incentives to these retailers further solidify their importance. At the same time, these channels are key battlegrounds for tobacco control efforts aiming to reduce tobacco consumption through awareness and regulation. Roadside tea stalls and traditional grocery retailers were also the most dynamic and popular channels as a result.
Tobacco in Bangladesh is projected to see strong declines in retail volume and value (constant 2024 prices) sales in 2025, before rebounding from 2026. However, tobacco is projected to see only a marginal retail volume CAGR and a mildly negative retail value (constant 2024 prices) CAGR over the forecast period. Amidst tobacco policy implementations, there are likely to be disruptions to categories and competitive landscapes in tobacco in the short term.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Understand the latest market trends and future growth opportunities for the Tobacco industry in Bangladesh 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:
If you're in the Tobacco industry in Bangladesh, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
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 definitionsThis report originates from Passport, our Tobacco research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!