Cigarettes in Asia Pacific

January 2022

Asia Pacific continues to be the largest cigarette market in the world. The region’s cigarette consumption experienced a decline caused by the impact of COVID-19 leaving consumers to reduce their consumption of cigarettes or shift to illegal trade. While strong government regulations and emergence of next-generation products indicate a challenging future, capsule cigarettes and growing demand for premium segments bring interest to this mature industry.

USD 1,325
Request More Information

Key findings

Pandemic negatively impacted cigarette consumption in Asia Pacific

Asia Pacific continues to be the largest cigarette market in the world in volume terms. Five out of the global top 10 cigarette markets are located in Asia Pacific, including China, Indonesia, Japan, Vietnam and Bangladesh. The region’s cigarette consumption experienced a decline over the review period having faced the impact of COVID-19. This left many consumers feeling worse off, leading them to reduce their consumption of cigarettes or shift to illegal trade.

China continues to dominate the market in volume terms

China is by far the largest market in Asia Pacific accounting for 70% of regional consumption in 2020. Over 2015-2020, the top 10 brands in the region were Chinese brands, taking advantage of the large size of the local market.

Even during the pandemic, the country experienced growth led by growing consumer preference for premium and mid-priced cigarettes, indicative of increasing disposable incomes.

Flavour capsule cigarettes remain trendy

Younger consumers of legal smoking age are a big fan of flavour capsule cigarettes, due to the freshness and complexity of taste. Less reduced smell is another key driver for rapid growth of capsule cigarettes in the region. With the social pressure surrounding passive smoking mounting, many smokers looked for ways to reduce smoking smells and the capsule cigarette became more popular thanks to its smooth odour.

Negative outlook after a temporary rebound

The future is not bright. Retail volume sales of cigarettes in Asia Pacific are set to see a temporary rebound in 2021 but shortly thereafter are expecting another downturn. Strong anti-tobacco campaigns, tax hikes and emergence of next-generation products will lead further declines.

Introduction

Scope
Key findings

Regional Overview

Asia Pacific leads the global cigarette market in retail volume terms
Tax hikes will continue to exert downward pressure
China: Cigarette volumes decrease but slim format gains popularity
D ecline in opportunities to smoke
Asia Pacific experienced declines in sales across all price bands
Regular format is most popular choice across countries
Significant decline of packs of 20, while still dominant
Clear growth of flavour capsule cigarettes
Premium brands saw a rise in selected markets (1)
Premium brands saw a rise in selected markets (2)
G rowing consumer awareness of superslim cigarettes (1)
G rowing consumer awareness of superslim cigarettes (2)
Packs of 20 still dominant but declining (1)
Packs of 20 still dominant but declining (2)
Capsule cigarettes hit record high sales (1)
Capsule cigarettes hit record high sales (2)
COVID-19 had little impact on cigarette distribution (1)
COVID-19 had little impact on cigarette distribution (2)

Leading Companies and Brands

State-owned companies retain dominance
Multinational giants show their presence in diversified markets
Excluding China, Gudang Garam remains the most sold brand

Forecast Projections

Asia Pacific to see a temporary rebound (1)
Asia Pacific to see a temporary rebound (2)
Asia Pacific to see a temporary rebound (3)

Country Snapshots

China: Market context
China: Competitive and retail landscape
Indonesia: Market context
Indonesia: Competitive and retail landscape
Japan: Market context
Japan: Competitive and retail landscape
India: Market context
India: Competitive and retail landscape
Philippines: Market context
Philippines: Competitive and retail landscape
South Korea: Market context
South Korea: Competitive and retail landscape
Vietnam: Market context
Vietnam: Competitive and retail landscape
Pakistan: Market context
Pakistan: Competitive and retail landscape
Thailand: Market context
Thailand : Competitive and retail landscape
Taiwan: Market context
Taiwan : Competitive and retail landscape
Kazakhstan: Market context
Kazakhstan : Competitive and retail landscape
Azerbaijan: Market context
Azerbaijan : Competitive and retail landscape
Malaysia: Market context
Malaysia: Competitive and retail landscape
Uzbekistan: Market context
Uzbekistan: Competitive and retail landscape
Hong Kong, China: Market context
Hong Kong, China: Competitive and retail landscape
Singapore: Market context
Singapore: Competitive and retail landscape
Share:

NEW REPORT GUARANTEE

If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page