Overall, it was a positive picture for tobacco in Uzbekistan in 2024. In particular, it was a standout year for cigarettes, with volume sales increasing significantly. There were several reasons for this. Firstly, the number of smokers increased due to a sharp decline in labour migration to Russia, resulting in more adult smokers remaining in the country. Secondly, illicit cigarette trade, which had been growing rapidly and accounted for nearly a quarter of total volume sales in 2023, saw a significant decline in 2024. Customs introduced several measures to improve the monitoring of shipments of cigarettes entering the country in 2024, including that certain documents now have to be sent electronically to customs and presented at the border post. These new measures were very successful and resulted in a significant decline in illegal trade.
In 2024, legal cigarette sales in Uzbekistan saw strong growth, marking 2024 the most dynamic year in a decade. As discussed above, this was largely due to a sharp decline in illicit trade and a temporary rise in the number of smokers, as fewer people migrated for work abroad. However, this growth came despite continued price increases from rising excise taxes. In 2024, the government adjusted excise duties on both domestic and imported cigarettes as part of its commitment to align with international trade standards. These changes aimed to create a more level playing field between local and foreign producers and led to price increases. This step meets one of the key requirements for WTO accession, which is expected to happen in 2026.
British American Tobacco Uzbekistan (UZBAT) continued to lead the tobacco, maintaining a dominant position, especially in cigarettes. The company’s strength is built on its wide-ranging portfolio, including well-established brands across all price segments, such as Kent and Pall Mall, which continue to rank as the top two brands by volume in the country. The company also consistently updates its portfolio with new product launches, such as Kent Mix Cool and Pall Mall Alaska Nights in 2024, in the growing flavoured segment.
Small local grocers remained the largest distribution channel for tobacco in Uzbekistan in 2024. The channel is influenced by two opposing trends. On the one hand, its share in cigarette sales has slightly declined due to the gradual expansion of modern grocery retailers such as supermarkets and convenience stores. On the other hand, small grocers are increasingly becoming important for newer products like heated tobacco, where distribution is expanding.
Over the forecast period, Uzbekistan’s tobacco will remain relatively stable, showing flat dynamics overall. Legal cigarettes will see a slight increase in volume sales, due to further declines in illicit trade. However, this will be counterbalanced by downward pressure from rising prices, tax increases, and gradual reductions in smoking prevalence. Also, the recent increase in the legal smoking-age to 21, will dampen volume sales to a degree.
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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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