Tobacco in Myanmar

Tobacco in 2024: The big picture

In 2024, Myanmar's tobacco industry recorded a positive overall performance in both volume and value terms. High prevalence of tobacco use remained a key growth driver, underpinned by habitual consumption patterns and relatively low barriers to access. Across the country, tobacco products remain widely available and affordable, with limited public health campaigns or government-backed cessation programmes in place to curb usage. The continuing absence of strong regulatory oversight or taxation reforms also contributed to steady consumption. Furthermore, the evolving landscape of nicotine products – particularly the rising popularity of e-vapour products – introduced additional momentum, expanding the category beyond conventional smoking and contributing to overall growth. While traditional products like cigarettes and cheroots continued to dominate, the expansion of vape brands through product innovation, marketing strategies, and growing urban demand reflected shifting consumer preferences and a diversification of the tobacco user base.

2024 key trends

Volume sales of tobacco products rose in 2024, supported by sustained demand across both legal and illicit channels. Value sales also increased, driven in part by rising unit prices and a growing share of premium or imported alternatives. Cigarettes remained the largest category in volume and value terms, though faced increasing competition from both culturally embedded alternatives – such as hand-rolled cheroots and tobacco-infused betel quid – and emerging products like e-vapour devices. Cigarette sales were further affected by the persistence of illicit trade, which continued to thrive due to weak enforcement mechanisms, porous borders, and lower prices that attracted cost-sensitive consumers. Among younger demographics, e-vapour products gained notable traction, perceived as more modern and less harmful, especially in urban areas where access and marketing visibility have expanded.

Competitive landscape

Myanmar Japan Tobacco Company Limited was the leading company within tobacco overall in 2024, holding the highest volume share due to its strong presence in the cigarettes category. The company produces the Mevius and Winston brands, which are primarily positioned within the mid-range segment. Mevius, in particular, enjoys broad consumer appeal due to its affordable pricing and wide availability across both on-trade and off-trade retail channels. The brand has benefitted from consistent brand recognition, locally attuned marketing campaigns, and a reliable distribution network that has helped preserve its share in an increasingly fragmented and competitive environment. Despite the expansion of alternative tobacco and nicotine categories, Myanmar Japan Tobacco Company Limited has maintained its dominance through pricing strategies and sustained availability.

Retail developments

Traditional retail was the leading distribution channel within tobacco overall in 2024. Its dominance was supported by the proliferation of small, informal outlets such as neighbourhood stores, roadside kiosks, and betel quid vendors. These retailers are deeply integrated into local communities, particularly in rural and low-income areas, and provide high accessibility to a broad array of tobacco products. Consumers frequently purchase cheroots, chewing tobacco, and cigarettes in single-stick format from these outlets, which makes tobacco affordable and aligns with local purchasing habits. The cultural norm of selling and consuming betel quid laced with smokeless tobacco further entrenched traditional trade’s importance, as these products are often prepared and sold together in informal roadside settings. In the absence of enforcement on packaging laws or health warnings at the point of sale, traditional trade continues to function with minimal regulatory disruption, contributing to its sustained leadership in distribution.

What next for tobacco?

Sales of tobacco are set to rise steadily over the forecast period, with volume and value growth underpinned by the continued absence of strong regulatory deterrents. It is unlikely that the incumbent State Administration Council (SAC) will implement comprehensive tobacco control policies or stricter enforcement on packaging, health warnings, or youth protection during the forecast period. Public health campaigns promoting smoking cessation are not anticipated to emerge at the national level, further reducing pressure on existing consumption patterns. As a result, tobacco use – including both traditional and emerging formats – is expected to remain high across the country, particularly in rural and lower-income segments where affordability and access to single-stick sales drive habitual use. The relatively permissive regulatory landscape will continue to favour manufacturers and distributors operating across both legal and informal trade.