Tobacco in 2024: The big picture
Retail volume sales of cigarettes exhibited moderate growth in Uganda in 2024. The illicit trade continued to expand, accounting for almost two-thirds of total cigarette sales. Low-income men aged 25-40 living in rural areas are the most likely to smoke cigarettes. British American Tobacco East & Central Africa Area remained the dominant player in cigarettes, with Leaf Tobacco & Commodities Ltd its main rival. Retail volume sales of cigars, cigarillos and smoking tobacco remained insignificant, while sales of e-vapour and heated tobacco products are banned.
2024 key trends
Retail volume sales of cigarettes (sticks) exhibited moderate growth in Uganda in 2024. The illicit trade continued to expand, accounting for almost two-thirds of total cigarette sales (Illicit + legal). The Supermatch brand accounts for more than 90 percent of seized cigarettes in the country. Illicit cigarettes are often distributed in popular markets like Kikuubo in Kampala.
Competitive landscape
British American Tobacco East & Central Africa Area (BAT) remained the dominant player in cigarettes in Uganda in 2024, with Leaf Tobacco & Commodities (U) Ltd its main rival. However, the company’s performance has been affected by the high prevalence of illicit trade in cigarettes, which continues to shrink the legitimate market.
Retail developments
Small grocery retailers are the dominant distribution channel for cigarettes in Uganda, and they play a significant role in the sale of illicit cigarettes. Most of the country’s smokers buy their cigarettes from small local grocers, newsagent-tobacconists/kiosks or street vendors because these channels are the most likely to sell single sticks at low prices.
What next for tobacco?
Retail volume sales of tobacco will grow at a similar pace to the review period in the forecast period, with an expanding population the main driver of this. The harmonisation of tax rates with other countries in the region is expected, addressing the current disparity where Uganda’s tobacco tax is significantly higher than that of neighbouring countries like Kenya and Tanzania. For instance, Tanzania's tax rate for cigars is 30%, compared to Uganda's 200%. Despite this planned harmonisation, the illicit trade in cigarettes will continue to grow as a percentage of total cigarette sales (legal + illicit) throughout the review period.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Uganda 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 Uganda, 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 Uganda 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 Uganda?
- Which are the leading brands in Tobacco in Uganda?
- How are products distributed in Tobacco in Uganda?
- Which category is the most heavily taxed in Uganda?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Uganda?
- 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 Uganda
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
Illicit trade accounts for almost two-thirds of retail volume sales of cigarettes
Presence of local manufacturers or companies within the country
Small grocery retailers continue to dominate distribution
Prospects and Opportunities
Illicit trade will continue to grow in importance
Increased tobacco harvest will boost domestic cigarette manufacturing
Efforts to crack down on illicit trade will be ramped up
Category Data
2024 Developments
Cigar consumption rising but remains very low
Despite being banned, use of shisha is growing
Prospects and Opportunities
Demand will remain limited
Category Data
2024 Developments
E-vapour and heated tobacco products are banned
Chewing tobacco remains popular among Uganda’s Indian population
Vape shops and e-commerce the main distribution channels
Prospects and Opportunities
Despite growing popularity among teens, prohibition will limit growth in e-vapour products
Heated tobacco has some potential for growth
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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