Tobacco in 2024: The big picture
The tobacco industry in Pakistan continued to be a significant contributor to the national economy in 2024, though it faces a complex landscape shaped by evolving regulations, changing consumer behaviour, and international pressures. The sector is a major employer, generates substantial revenue from taxes, and is crucial for agricultural livelihoods, especially for tobacco farmers in various regions. However, growing concerns over public health, environmental sustainability, and global anti-smoking trends are creating both challenges and opportunities for industry players.
2024 key trends
In 2024, Pakistan's tobacco industry faced significant challenges marked by declining legal cigarette production, a surge in illicit trade, and high taxation. With the increase in taxes, prices of local cigarettes have more than doubled in the past three years, resulting in a high influx of imported cigarettes, such as Mond, Milano, and Elegance, into the market. Facing the brunt of inflation, consumers are choosing lower-priced cigarettes, impacting economy brands like Morven and Capstan.
Competitive landscape
Pakistan Tobacco Co Ltd (PTC), a subsidiary of British American Tobacco, and Philip Morris International (PMI), continue to dominate the legal cigarette market and contribute significantly to government revenues, paying 98% of the taxes collected from the tobacco sector. This substantial tax contribution underscores their pivotal role in the formal economy. ?PTC remains the market leader thanks to its extensive availability and brand image, followed by PMI. The two main cigarette brands, Pall Mall and John Player Gold Leaf, contributed hugely to PTC’s success.
Retail developments
Small local grocers remained the leading distribution channel for cigarettes in Pakistan in retail volume terms in 2024, despite losing share over the review period. The convenience and proximity of small local grocers remained the key success factors.
What next for tobacco?
The cigarettes category is projected to see a moderate increase over the forecast period; however, the growth in illicit sales is expected to outpace that of legal sales. Illicit trade continues to be a significant concern for authorities in Pakistan, and little is being done to control cross-border trade. Most illicit products come from Iran and Afghanistan, and there are frequent border skirmishes with Afghanistan border forces which result in temporary trade bans. To protect local companies and prevent revenue losses to the national exchequer, law enforcement agencies must take decisive action to eliminate illegal trade.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Pakistan 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 Pakistan, 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 Pakistan 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 Pakistan?
- Which are the leading brands in Tobacco in Pakistan?
- How are products distributed in Tobacco in Pakistan?
- Which category is the most heavily taxed in Pakistan?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Pakistan?
- 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 Pakistan
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
Tar levels
Health warnings
Plain packaging
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Reduced harm
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Pakistan
KEY DATA FINDINGS
Fall in cigarette consumption continues in 2024
Illicit trade remains a challenge
Small retailers losing share, but remain dominant
Policy engagement and formalisation of the market
Export potential
Development and expansion of reduced-harm products
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Pakistan
KEY DATA FINDINGS
Affluent consumer base supports growth of cigars
Imperial leads a highly consolidated competitive landscape
Key role of specialist retailers and e-commerce
Niche market with growth potential
Development of cigar lounges
Changes in product preferences
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Pakistan
KEY DATA FINDINGS
Traditional cigarette players expanding their product offerings
Rising popularity amongst young adults
E-commerce supports growth and diversification
Regulatory considerations
Substantial potential with rising demand for next-generation nicotine products
Product innovation in e-vapour products
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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