COVID-19 had a very negative impact on the performance of cigars and cigarillos in 2020, with the category posting double-digit declines in retail volume and current value sales. These products are mainly purchased for consumption while socialising outside the home, such as at parties, during visits to bars and restaurants etc.
Pipe tobacco also saw retail volume and current value sales decline at double-digit rates in 2020. Like cigars and cigarillos, this category suffered as home seclusion and lockdown measures reduced social opportunities for smoking.
Fine cut tobacco showed an improved performance in retail volume and current value growth terms in 2020. Health concerns helped to strengthen interest in the category, as smokers often perceive fine cut tobacco as a more “natural” alternative to cigarettes and therefore erroneously believe it is somehow less harmful.
Demand in cigars and cigarillos should pick up somewhat in 2021 as economic conditions improve and consumers start socialising outside the home more often in line with the anticipated easing of the COVID-19 pandemic. However, the category is still expected to record a sharp decline in retail volume sales, and it looks likely to continue posting negative results in this regard over the remainder of the forecast period.
Pipe tobacco looks set to record the steepest retail volume sales decline and be by far the weakest performer in current value growth terms within cigars, cigarillos and smoking tobacco over the forecast period. The ban on hookah smoking in all public places implemented in 2020 has dealt a major blow to the category’s prospects, as this activity has long been a popular way for younger Kazakhstanis to socialise in cafés and bars.
Fine cut tobacco is projected to record strong growth in retail volume and current value sales throughout the forecast period. The category will continue to attract smokers who mistakenly perceive this product type to be less damaging to health than machine-made cigarettes, or believe switching to roll-your-own cigarettes will enable them to better regulate their overall tobacco consumption.
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Understand the latest market trends and future growth opportunities for the Cigars, Cigarillos and Smoking Tobacco 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 Cigars, Cigarillos and Smoking Tobacco research and analysis database.
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