Lockdown measures imposed to curb the spread of COVID-19 disrupted the supply chains of cigarettes producers and distributors in Kazakhstan in 2020, resulting in temporary shortages of some brands. At the same time, social opportunities for smoking were limited by the closure of on-trade outlets during lockdown periods and the fact that fear of contracting the virus made many consumers reluctant to frequent such establishments when they were permitted to open.
Rising health awareness remained the primary driver of the declining trend in cigarettes volume sales in 2020. Price hikes caused by a rise in excise duty gave smokers an additional incentive to quit or cut down, while also boosting illicit trade.
Retail volume sales of flavour capsule cigarettes continued to grow in Kazakhstan in 2020. In particular, these products proved increasingly popular among young adults and female smokers, who tend to prefer lighter tobacco flavours and are generally more willing to experiment with new types of cigarettes.
The downward trajectory in retail volume sales of cigarettes looks set to persist throughout the forecast period, with the rate of decline projected to accelerate consistently towards 2025. Rising health-consciousness and regular hikes in excise duty will continue to drive existing cigarette smokers to quit or cut down, while also deterring younger Kazakhstanis from taking up the habit in the first place.
October 2020 saw a new mandatory labelling system for cigarettes come into force in Kazakhstan. All cigarette packs are now required to have a unique identifier known as a Data Matrix code containing information such as the manufacturer’s name, the product’s serial number etc.
With the financial cost of smoking set to continue rising in line with further excise duty hikes, economy brands will remain dominant in cigarettes over the forecast period. However, the overall retail volume share of the economy segment is expected to decline consistently towards 2025, with modest but steady gains projected for mid-priced and premium brands.
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Understand the latest market trends and future growth opportunities for the Cigarettes industry in Kazakhstan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Cigarettes research and analysis database.
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