Cigarettes saw a temporary decline in volume sales during the first year of the COVID-19 pandemic, before seeing a slight recovery. However, cigars did not suffer such a fate, with volume growth remaining solid in both 2020 and 2021.
Demand for cigarillos is extremely low in Indonesia, largely because these products compete directly with lower-priced clove cigarettes, or kreteks. The latter are very popular amongst lower-income consumers, who comprise the majority of smokers in Indonesia.
In Indonesia, smoking tobacco includes only fine cut tobacco, as sales of pipe tobacco are negligible. Smoking tobacco has a much larger consumer base than cigars or cigarillos in Indonesia.
Indonesia is expected to move towards economic recovery post-pandemic. This is expected to drive increasing retail volume growth rates in cigars and cigarillos over the course of the forecast period.
Due to the COVID-19 pandemic, non-retail channels such as bars, lounges and clubs were subject to closures, and there were strict mobility restrictions imposed by the government to limit the risk of spreading the virus. This reduced the volume shares of bar-tobacconists and hotels/restaurants/bars in 2020, and in 2021 they saw a further decline.
With more players making their cigars and cigarillos available in convenience stores, this is likely to have a positive impact on the performances of these categories in the medium to longer term, as these products gain consumer awareness and are more readily available. Currently, such products are mainly available in stores in larger cities, but the trend is moving towards these products having greater availability at national level.
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Understand the latest market trends and future growth opportunities for the Cigars, Cigarillos and Smoking Tobacco industry in Indonesia 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 Cigars, Cigarillos and Smoking Tobacco industry in Indonesia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Cigars, Cigarillos and Smoking Tobacco
This report originates from Passport, our Cigars, Cigarillos and Smoking Tobacco research and analysis database.
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