Tobacco in Azerbaijan
Euromonitor International's Tobacco in Azerbaijan market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data.
Tables: 81 | Publication date: Oct 2008
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Cigarettes; Cigarettes including RYO; Cigars; Smoking tobacco
Executive summary
Dynamics of market development
At the end of the review period, the tobacco market in Azerbaijan witnessed dynamic retail sales growth. Prices generally remained stable across the market as a whole. A general rise in the level of income, alongside the wide availability of cigarettes, cigars and cigarillos by the stick helped stimulating market development, in particular industrial manufacturing. At the end of review period, domestic tobacco company European Tobacco-Baku JSC introduced its new brand Vigor Ultimate, positioned in the middle price segment. The influence of low- and economy-priced cigarettes stayed stable and the majority of Azerbaijanis continued to prefer them. However, there was an inflow of premium-priced cigarettes into the market which also gained acceptance.
Trends in legislative restrictions
Generally, the advertising of tobacco products on television, in mass media and on street billboards is not allowed in Azerbaijan. There is a continuous trend of a reduction in share for high tar cigarettes based on government initiatives. At the end of review period, the Ministry of Youth & Sports and the Ministry of Health of Azerbaijan arranged various initiatives, dedicated to demonstrating the dangers of smoking amongst young people, promoting a healthier lifestyle without tobacco. A recent government programme to restrict smoking required stores to hang at their entrance a sign highlighting the fact that it is prohibited to sell any type of tobacco to people under the age of 18.
The cigarettes market in hands of domestic enterprise
European Tobacco-Baku JSC is one of the largest cigarette producers in the Caucasus. Its factory, equipped with modern machinery produced by the leading companies of Germany, France and Holland, allows the company to meet domestic demand as well as export to a number of countries. The company has around 30 brands of cigarettes in its portfolio. Recent trends of the promotion of healthy lifestyles have affected tobacco sales, since this market is very much inter-related with health issues. Consequently, demand amongst consumers for low tar cigarettes is increasing. European Tobacco-Baku aims to actively exploit this trend, attempting to decrease the level of tar in its products. Significantly, at the end of the review period there was an influx of mid tar and low tar imported cigarette brands into the market. Cigars and smoking tobacco sales are totally in the hands of international operators.
Improving distribution appeal of cigars and cigarillos
Rising prices prompted many consumers to purchase lower-cost cigars and cigarillos from discounters, street vendors and newsagent-tobacconists/kiosks. Consequently, street vendors and newsagent-tobacconists/kiosks improved sales by selling cigars by the stick, as well as entire packs, which, in turn, increased the number of cigar smokers at the end of review period. As for cigarettes, street vendors and newsagent-tobacconists/kiosks also sell them by a stick, alongside full packs; however, this did not affect the overall performance of cigarettes, since these are offered across the full range of price segments.
Forecast market performance
Over the forecast period, tobacco is expected to see positive and dynamic volume growth with the continued predominance of local operators, which are expected to increase their presence further. Smoking tobacco is not expected to develop significantly, since the cigarettes category is saturated and prices for smoking tobacco are higher for consumers.
Table of contents
TOBACCO IN AZERBAIJAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Dynamics of market development
Trends in legislative restrictions
The cigarettes market in hands of domestic enterprise
Improving distribution appeal of cigars and cigarillos
Forecast market performance
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2002-2007
Table 2 Number of Smokers by Gender 2002-2007
Death by Cause
Legislation
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies
Table 4 Average Cigarette Pack Price Breakdown, 2007
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 6 Deaths by Diseases of the Respiratory System 2002-2007
Table 7 Deaths from Heart Disease 2002-2007
Table 8 Deaths from Lung Cancer 2002-2007
Table 9 Illicit Trade Estimate 2002-2007
MARKET DATA
Table 10 Sales of Tobacco by Sector: Volume 2002-2007
Table 11 Sales of Tobacco by Sector: Value 2002-2007
Table 12 Sales of Tobacco by Sector: % Volume Growth 2002-2007
Table 13 Sales of Tobacco by Sector: % Value Growth 2002-2007
Table 14 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007
Table 15 Forecast Sales of Tobacco by Sector: Volume 2007-2012
Table 16 Forecast Sales of Tobacco by Sector: Value 2007-2012
Table 17 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012
Table 18 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012
DEFINITIONS
Sources
Summary 1 Research Sources
CIGARETTES
Headlines
Trends
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
Competitive Landscape
New Product Developments
Summary 2 Cigarettes: New Product Launches 2007
Prospects
Sector Data
Table 19 Sales of Cigarettes by Tar Level: Volume 2002-2007
Table 20 Sales of Cigarettes by Tar Level: Value 2002-2007
Table 21 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007
Table 22 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007
Table 23 Sales of Cigarettes by Price Band: % Volume Breakdown 2002-2007
Table 24 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2002-2007
Table 25 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2002-2007
Table 26 Sales of Cigarettes by Filter Vs Non-filter 2002-2007
Table 27 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2002-2007
Table 28 Sales of Cigarettes by Length 2002-2007
Table 29 Sales of Cigarettes by Regular/Slim 2006-2007
Table 30 Sales of Cigarettes by Pack Size 2002-2007
Table 31 Sales of Cigarettes by Pack Type 2002-2007
Table 32 Cigarettes Company Shares 2003-2007
Table 33 Cigarettes Brand Shares 2004-2007
Table 34 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012
Table 35 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012
Table 36 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
Table 37 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
Table 38 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012
Table 39 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012
Table 40 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012
Table 41 Forecast Sales of Cigarettes by Filter Vs Non-filter 2007-2012
Table 42 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2007-2012
Table 43 Forecast Sales of Cigarettes by Length 2007-2012
Table 44 Forecast Sales of Cigarettes by Regular/Slim 2007-2012
Table 45 Forecast Sales of Cigarettes by Pack Size 2007-2012
Table 46 Forecast Sales of Cigarettes by Pack Type 2007-2012
CIGARS AND CIGARILLOS
Headlines
Trends
Competitive Landscape
New Product Developments
Prospects
Sector Data
Table 47 Sales of Cigars by Subsector: Volume 2002-2007
Table 48 Sales of Cigars by Subsector: Value 2002-2007
Table 49 Sales of Cigars by Subsector: % Volume Growth 2002-2007
Table 50 Sales of Cigars by Subsector: % Value Growth 2002-2007
Table 51 Company Shares of Cigars Exluding Cigarillos 2003-2007
Table 52 Brand Shares of Cigars Exluding Cigarillos 2004-2007
Table 53 Company Shares of Cigarillos 2003-2007
Table 54 Brand Shares of Cigarillos 2004-2007
Table 55 Forecast Sales of Cigars by Subsector: Volume 2007-2012
Table 56 Forecast Sales of Cigars by Subsector: Value 2007-2012
Table 57 Forecast Sales of Cigars by Subsector: % Volume Growth 2007-2012
Table 58 Forecast Sales of Cigars by Subsector: % Value Growth 2007-2012
SMOKING TOBACCO
Headlines
Trends
Competitive Landscape
New Product Developments
Prospects
Sector Data
Table 59 Sales of Smoking Tobacco by Subsector: Volume 2002-2007
Table 60 Sales of Smoking Tobacco by Subsector: Value 2002-2007
Table 61 Sales of Smoking Tobacco by Subsector: % Volume Growth 2002-2007
Table 62 Sales of Smoking Tobacco by Subsector: % Value Growth 2002-2007
Table 63 Company Shares of RYO Tobacco 2003-2007
Table 64 Brand Shares of RYO Tobacco 2004-2007
Table 65 Company Shares of Pipe Tobacco 2003-2007
Table 66 Brand Shares of Pipe Tobacco 2004-2007
Table 67 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012
Table 68 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012
Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012
Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012
EUROPEAN TOBACCO-BAKU JSC
Strategic Direction
Key Facts
Summary 3 European Tobacco-Baku JSC: Key Facts
Company Background
Production by Factory
Competitive Positioning
Summary 4 European Tobacco-Baku JSC: Competitive Position 2007
CAHAN TOBACCO LTD
Strategic Direction
Key Facts
Summary 5 Cahan Tobacco Ltd: Key Facts
Summary 6 Cahan Tobacco Ltd: Operational Indicators
Company Background
Production by Factory
Competitive Positioning
Summary 7 Cahan Tobacco Ltd: Competitive Position 2007
LANE LTD
Strategic Direction
Key Facts
Summary 8 Lane Ltd: Key Facts
Company Background
Production by Factor
Competitive Positioning
Summary 9 Lane Ltd: Competitive Position 2007
BRITISH AMERICAN TOBACCO PLC
Strategic Direction
Key Facts
Summary 10 British American Tobacco Plc: Key Facts
Company Background
Production by Factory
Competitive Positioning
Summary 11 British American Tobacco Plc: Competitive Position 2007