Having plunged by almost a third during 2019, after a significant tax increase led to a surge in cross-border cigarette smuggling, retail volume sales of cigarettes rebounded during 2020. Sales of unpackaged smoking tobacco were banned, and as a result, many consumers came back to cigarettes.
Having expanded significantly during 2019, Illicit trade in cigarettes continued to grow in importance in Georgia during 2020, in spite of restrictions on movement introduced in an effort to reduce the level of COVID-19 infection in the country. Illicit trade had already been rising earlier in the review period, but it surged during 2019 due to new taxation laws that were introduced in January 2019.
Phillip Morris International Inc reinforced its leadership position in cigarettes during 2020, with almost twice the retail volume share of Japan Tobacco Inc – its closest rival. Philip Morris International Inc overtook Japan Tobacco in 2017 after it launched the Phillip Morris and Bond Street brands.
Retail volume sales of cigarettes will decrease by almost a third during the forecast period. The growth of illicit trade will be the main driver of this, as this is highly organised and expected to account for close to half of all cigarette sales in Georgia by 2025.
Over the forecast period, local consumers are likely to become more aware of their health. With the link between physical and mental health now more widely recognised and an ever-growing gym-culture, some consumers will begin to question their smoking habit.
From the beginning of January 2021, tobacco may not be visible in any sales area, including inner areas of shops. This move will mainly affect independent small grocers, which often have cigarettes on display.
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Understand the latest market trends and future growth opportunities for the Cigarettes industry in Georgia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Cigarettes industry in Georgia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Cigarettes research and analysis database.
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