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.
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.
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.
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.
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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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 definitionsThis report originates from Passport, our Tobacco research and analysis database.
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