Retail volume sales of cigarettes are expected to record consistent decline over the course of the forecast period to 2027. This is attributable to rising awareness of the health risks associated with smoking among the Azerbaijani population, which will continue to encourage existing smokers to cut down or quit and deter young people from taking up the habit to begin with.
A “Track and Trace” system is to be created to eliminate illicit trade in Azerbaijan. The draft amendments to the Tax Code were submitted for discussion in the first reading in September 2022.
Flavoured cigarettes continued to grow in popularity in 2022, with most novelties happening in this area, and more sophisticated flavours are expected to appear over the forecast period. Compact formats are also set to be launched in order to remain competitive as demand for better-priced cigarettes will increase as more consumers seek to reduce the cost of their smoking habit.
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RETAIL SALES OF DUTY PAID CIGARETTES The definition of cigarettes for the purposes of this study is duty-paid, machine manufactured white-stick products. This does not exclude brands of cigarettes that do not use white paper but it is designed to exclude the volume of non-machine manufactured products such as bidis/beedis (India) and papirosy (Russia), and other smoking products made with tobacco but that either do not resemble cigarettes as recognised in the US or Europe, or those that are not machine manufactured. The exclusion of these products is intended to give a more accurate picture of the "true" market for cigarettes and cigars which has been distorted in official statistics and published reports because of the inclusion of hybrid products. NB Please note that due to its central importance and integration into the industry mainstream, Indonesia’s market data does include hand-rolled kreteks DUTY-FREE sales are excluded from retail sales, as are herbal cigarettes. ILLICIT TRADE CIGARETTES Not included in retail sales, but split out separately in volume terms only. Defined as non-duty paid cigarettes (includes smuggled & counterfeit/fake products combined). Legitimate cross-border sales are considered duty-paid. Sales arising from a foreign national purchasing cheaper cigarettes in bulk in a neighbouring country for personal use and exported back are attributed to the country where the purchase is made (e.g. bulk cigarette sales by British nationals in France are attributed to France).See All of Our Definitions
This report originates from Passport, our Cigarettes research and analysis database.
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