Tobacco in 2024:The big picture
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.
2024 key trends
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.
Competitive landscape
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.
Retail developments
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.
What next for tobacco?
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.
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Overview:
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:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
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.
The Tobacco in Bangladesh 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 Bangladesh?
- Which are the leading brands in Tobacco in Bangladesh?
- How are products distributed in Tobacco in Bangladesh?
- Which category is the most heavily taxed in Bangladesh?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Bangladesh?
- 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 Bangladesh
Tobacco in 2024:The big picture
2024 key trends
Competitive landscape
Retail developments
What next for tobacco?
Legislation
TAXATION AND DUTY LEVIES
DISCLAIMER
Key Data Findings
2024 Developments
Higher prices hit the demand for cigarettes
Economy focus helps United Dhaka Tobacco to gain retail volume share
Affordability and availability the watchwords in distribution
Prospects and Opportunities
High tar levels may see a switch from economy to mid-priced cigarettes
Higher taxes to impact cigarette producers
Players continue to invest admist a complex landscape of tax increases and tighter regulation
Category Data
Key Data Findings
2024 Developments
Cigars and cigarillos see fast retail volume growth but remain limited-use tobacco products
Churuts are most popular
Upscale hospitality dominates the distribution of cigars and cigarillos
Prospects and Opportunities
Price determines uptake although cultural shifts may increase interest in cigars and cigarillos
Illegal products threaten branded cigars and cigarillos
Low demand and negligible innovation
CategoryData
Key Data Findings
2024 Developments
E-vapour products witnesses import ban
Strong presence of smokeless tobacco
Small local grocers dominate smokeless tobacco while e-commerce gains in e-vapour products
Prospects and Opportunities
Uncertainty reigns over e-vapour products
Government policy to impact smokeless tobacco
Asian-style chewing tobacco to remain popular
Category Data
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?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This report originates from Passport, our Tobacco research and analysis database.
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