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Due to their higher prices compared with cigarettes, sales of cigars and cigarillos remained negligible in Vietnam at the end of the review period. The main smokers of such products tend to be high-income earners, for example businessmen and executives, which account for only a small share of the total population.
Sales of smoking tobacco are limited to a niche consumer group in rural and suburban areas, especially people in northern parts of Vietnam. This niche consumer group mainly includes those in the older generation, mostly on low incomes, who are used to the strong flavour of smoking tobacco and feel cigarettes are too mild for them.
All sales of smoking tobacco are made through tobacco specialists. In terms of cigars and cigarillos, although sales are negligible in the country, HUMiDOR Vietnam, which specialises in these products, has a presence in large cities such as Ho Chi Minh and Hanoi.
Due to the limited consumer base for smoking tobacco, the competitive landscape in the category remained very fragmented in 2018, comprising many small players whose products are popular in different areas. Moreover, as smoking tobacco is generally regarded as a category for older people, large players such as Vinataba have shown little interest investing in it.
There is a lack of product innovation in smoking tobacco, due to the dominant position of cigarettes in Vietnam. There is thus little incentive for leading tobacco players to enter this area or invest in a major launch, due to a largely low-income, rural, older and price-sensitive consumer base.
While new product development remained very limited in cigars and cigarillos for much of the review period, the end of the review period saw a notable development. Domestic leader Vietnam National Tobacco Corp (Vinataba) launched a range of cigars and cigarillos in Vietnam under its Hanos brand in 2018.
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Discover the latest market trends and uncover sources of future market growth for the Cigars, Cigarillos and Smoking Tobacco industry in Vietnam with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Cigars, Cigarillos and Smoking Tobacco industry in Vietnam, our research will save you time and money while empowering you to make informed, profitable decisions.
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Gain competitive intelligence about market leaders. Track key industry trends, opportunities and threats. Inform your marketing, brand, strategy and market development, sales and supply functions.