Sales of cigars continued to enjoy steady growth in both value and volume terms in Pakistan in 2021. Cigars tend to be consumed in a leisurely manner and are targeted towards a niche market, namely the most affluent consumer group.
Tobacco specialists located in urban centres of Pakistan remain the main outlets selling cigars as the target consumers are affluent people living in the major cities. Tobacco specialists continued to account for the vast majority of sales of cigars in Pakistan in 2021 with these stores providing smoking rooms as well as having trained sales staff who can advise about the various options on offer.
In 2021, Imperial Tobacco Co Ltd and SS Alliance International maintained their position as the undisputed leaders within the highly-consolidated competitive landscape of cigars. Imperial Tobacco remained the dominant player mainly due to the popularity of its mid-priced Phillies brand.
Ongoing positive growth is projected for sales of cigars in Pakistan over the entire forecast period. The economic recovery that is expected in the country is likely to push sales of cigars and expand the consumer base.
As taxation is set to increase on tobacco products, retail prices are also set to increase in line with this. However, this will not be a particularly discouraging factor for the most affluent of cigar smokers.
Duty paid packet marks and tax stamps are not required on cigars in Pakistan and are not expected to be enforced over the forecast period. As cigars are entirely imported into the country, they do not face strong penetration of illicit trade, unlike cigarettes, and so duty stamps are not as much a priority for cigars as they are for cigarettes.
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Cigars, Cigarillos and Smoking Tobacco
This report originates from Passport, our Cigars, Cigarillos and Smoking Tobacco research and analysis database.
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