Tobacco in 2024: The big picture
Although Georgia enforces strict anti-tobacco laws, cultural norms continue to hinder effective implementation, making smoking a deeply rooted social habit. Daily smokers are primarily concentrated in urban areas, where the fast-paced lifestyle, combined with stress and social pressures, contributes to higher smoking rates. Additionally, traditional gender roles in Georgian society play a significant role in the prevalence of smoking among men, as it is often associated with masculinity.
2024 key trends
The overall decline in tobacco volume sales in 2024 is primarily driven by a decrease in cigarette consumption. In contrast, value sales are rising due to price increases, largely influenced by higher excise taxes. The shrinking population of smokers further contributes to the decline in cigarette volume sales. Meanwhile, the growing popularity of reduced-risk alternatives - such as heated tobacco products and e-cigarettes - has intensified market competition.
Competitive landscape
Philip Morris International (PMI) retains its strong position in overall tobacco in Georgia in 2024 thanks to its leading positions in cigarettes as its flagship brands, Marlboro and Parliament, continue to enjoy strong consumer loyalty. Despite premium branding, PMI strategically prices its products to remain competitive, especially in the face of inflation and rising excise taxes. This balance between quality and affordability appeals to a broad consumer base. In addition, PMI has established a robust distribution network across Georgia, ensuring its products are widely available in both urban and rural areas. This accessibility reinforces brand visibility and consumer preference.
Retail developments
Small local grocers continue to play a vital role in distribution in 2024, particularly in remote and underserved areas. While modern retail channels, such as supermarkets and convenience stores, are expanding rapidly, their presence has yet to reach many Georgian regions. This creates an opportunity for small local stores to thrive by catering to immediate community needs, offering convenient access to essentials, and maintaining personalised customer relationships. Their adaptability and ability to meet local demand ensure their resilience, even as modern retail growth accelerates.
What next for tobacco?
Cigarette volume sales in Georgia are expected to continue falling over the forecast period. Decline will be driven by a combination of factors, including rising health awareness, stricter regulations, and the growing popularity of reduced-risk alternatives such as e-cigarettes and heated tobacco. In addition, demographic shifts and a shrinking smoking population are expected to further accelerate the decline in traditional cigarette consumption.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Georgia 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 Georgia, 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 Georgia 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 Georgia?
- Which are the leading brands in Tobacco in Georgia?
- How are products distributed in Tobacco in Georgia?
- Which category is the most heavily taxed in Georgia?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Georgia?
- 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 Georgia
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
Health warnings
Plain packaging
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Georgia
KEY DATA FINDINGS
Declining sales with the rising popularity of alternative products
PMI leads with its premium brands
Importance of accessibility and convenience
Further decline expected with the ongoing shift in market dynamics
Rising competition from smoking alternatives
Limited innovation as manufacturers focus on ensuring compliance with the new packaging requirements
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Georgia
KEY DATA FINDINGS
Affluent consumers are increasingly drawn to high-quality, handcrafted cigars
Strong brand recognition and widespread product availability support leading position of Scandinavian Tobacco Group A/S
Food/drink/tobacco specialists lead, offering a wide range of products and expert advice
Further market expansion anticipated
Strong consumer loyalty to well-established brands
Shifting preferences toward more diverse and personalised smoking experiences
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Georgia
KEY DATA FINDINGS
Assortment expansion drives strong growth in 2024
Leading players provide extensive product ranges and innovation
Leading non-grocery retailers offer a wide assortment and broad availability
Positive outlook as consumers increasingly look for less harmful nicotine options
Potential regulatory shift could impact single use products
PMI focuses on technological advancement and product segmentation
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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