Cigars and cigarillos remain rather exotic products in Uzbekistan, as they are high-priced products which are not affordable by the vast majority of consumers. Moreover, as all of these products are imported, they are subject to high taxes and very expensive.
On the other hand, pipe tobacco is seeing increased interest thanks to hookah smoking being very popular in the country – particularly so as a significant part of socialising culture. Despite all the attempts of government to limit hookah smoking in horeca, these efforts do not seem to be particularly successful and, as a result, sales of pipe tobacco rebounded after the slumps seen in 2020 due to the pandemic restrictions placing downwards pressure on social activities, such as hookah smoking in bars with friends.
Al-Fakher Tobacco Trading retained its dominant position in smoking tobacco in 2021. As the first significant brand in the category in Uzbekistan, it benefits from a high level of consumer awareness.
Smoking tobacco is expected to be the most notable category over the forecast period, supported by the ongoing hookah trend. Hookah smoking is equally popular among all age groups of consumers, and this is expected to continue.
Cigars and cigarillos are not expected to gain significance and will remain as niche, expensive products with little interest. Smokers are far more inclined to focus on cigarettes and smoking/pipe tobacco, leaving little room for other alternative products to prosper.
British American Tobacco Uzbekistan (UZBAT) started its campaign to promote its glo heated tobacco in late 2021. It is expected that sales of this product will gain popularity among more affluent urban consumers over the forecast period, although it is not yet possible to determine data on the progress, volume and impact of this product in Uzbekistan.
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Cigars, Cigarillos and Smoking Tobacco
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