Tobacco in 2024: The big picture
In 2024, total volume sales of tobacco experienced moderate growth despite increasing health concerns and government efforts to reduce smoking prevalence via information campaigns, taxation and regulation. A 2023 decree imposed higher taxes on cigarettes and other tobacco products and forms a key plank of tobacco control efforts, as does the ban on e-vapour products. Moreover, the Southeast Asia Tobacco Control Alliance (SEATCA) and various international health groups have expressed their solidarity with the Government of Laos in its commitment not to renew the 25-year (2001-2026) Investment Licence Agreement with Imperial Tobacco Group. Moreover, in other initiatives, herbal tea made from Ya Dok Khao (Murraya siamensis Craib) has been introduced in the country to help people quit smoking.
2024 key trends
Cigars and cigarillos sales experienced the strongest growth in 2024, but from a very low base. Key drivers behind this performance also included rising disposable incomes, a growing number of middle- and high-income individuals, an increase in tourist arrivals, particularly during Laos’ ASEAN Chairmanship, and the continued expansion of the tourism and hospitality sector. Moreover, a cigar culture is gaining ground in the country, especially in Vientiane Capital, boosted by the opening of upscale cigar lounges, such as the 92 Cigar Club, which opened in 2023 in Parkson Mall.
Competitive landscape
In 2022, 3,837,878 million cigarette packs were manufactured, with a total value of LAK338,601.360 billion. This increased to 3,987,556 million packs in 2023, valued at LAK351,806.813 billion. Production of dried tobacco leaves reached 606,548 tonnes in 2022, worth LAK2,144.043 billion, and increased to 630,204 tonnes in 2023, valued at LAK2,227.661 billion. The value of other tobacco-related products stood at LAK1,156.985 billion in 2022, increasing slightly to LAK1,202.108 billion in 2023.
Retail developments
Tobacco products are widely available across Laos. Cigarettes are sold by almost all small local grocers, with these stores present across the country in both urban and rural areas. This is the leading distribution channel for tobacco, as these outlets cater to the low-income majority which account for the bulk of cigarettes sales. Street vendors also account for a strong share. Both small local grocers and street vendors attract many low-income smokers by continuing to offer cigarettes by the stick, despite this being illegal throughout the review period. The minimum legal pack size is set at 20 sticks. In some rural areas distribution is limited largely to popular local brand A Deng due to its lower pricing, while in urban areas it is more common to find imported global brands such as Marlboro, 555 and Winston alongside local brands.
What next for tobacco?
Volume sales of tobacco are expected to rise at a moderate rate over the forecast period. The World Health Organization projects the smoking prevalence percentage in both sexes to further drop to 23.3% in 2025, with only 4% of Lao females smoking.
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.
Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Laos 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 Laos, 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 Laos 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 Laos?
- Which are the leading brands in Tobacco in Laos?
- How are products distributed in Tobacco in Laos?
- Which category is the most heavily taxed in Laos?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Laos?
- 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 Laos
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
Demand remains resilient despite economic strain
Lao Tobacco Co Ltd retains the outright lead
Expansion of modern grocery retailers supports the distribution of cigarettes, while small local grocers retains the outright lead
Stable forecast period performance of cigarettes in Laos thanks to wide availability and affordability
Government set to further reduce smoking-related illnesses and death by discouraging consumption through packaging legislation updates
Ilicit trade continues over the forecast period and often through small local grocers
Category Data
Key Data Findings
2024 Developments
Rising disposable incomes contribute to the growth of cigars and cigarillos
Niche nature of cigars and cigarillos supports future potential growth
Distribution of cigars and cigarillos reliant on food/drink/tobacco specialists
Growing presence of hospitality venues contributes to sales growth of cigars and cigarillos
No development of smoking tobacco likely over the forecast period
Slowdown in growth as smoking becomes less socially acceptable and public smoking bans are better enforced
Category Data
2024 Developments
Betel quids remain a part of the culture in Laos
Weak enforcement of regulations around cigarette alternatives in Laos
The government is working with multiple stakeholders to enforce regulations on sales channels
Growing popularity of e-vapour products, despite being illegal
Government tightens regulations and applies greater enforcement
High unit prices of e-vapour products dampens demand
Category Data
The following categories and subcategories are included:
Tobacco
-
-
- Fine Cut Cigarettes
-
- Cigarettes (Illicit+Legal)
-
-
- Cigars
- Cigarillos
-
- Pipe Tobacco
- Fine Cut Tobacco
-
-
-
- Chewing Tobacco
-
-
- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
-
-
-
- Closed System Single Use
-
- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
-
- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
-
-
- Tobacco Heating Devices
- Heated Tobacco
-
- Nicotine Pouches
-
-
- 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.
NEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!