2025 Developments
Nicotine in Indonesia in 2025 is marked by a significant realignment of consumer habits, driven by persistent excise increases and growing price sensitivity, with a contraction in cigarette volume to 272,525 million sticks and a pronounced migration towards more affordable and alternative formats. Despite a stable macroeconomic environment, with real GDP growth at 5% and inflation at 2%, the combination of rising tobacco expenditure and declining cigarette sales signals intensified demand for value, reflected in the strong uptake of hand-rolled kretek and the robust growth of e-vapour products at 5%. The environment remains attractive for brands capable of rapidly innovating around price, accessibility, and sensory satisfaction, particularly as open-system vaping, heated tobacco, and affordable hand-rolled kretek consolidate their positions among cost-conscious and younger users. To succeed, brands must prioritise broad retail visibility, especially in convenience stores, invest in product innovation that balances affordability with user experience, and leverage influencer-led marketing and strategic partnerships to stand out in an increasingly segmented and dynamic competitive landscape.
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Overview:
Understand the latest market trends and future growth opportunities for the Nicotine 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.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
If you're in the Nicotine 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.
The Nicotine in Indonesia report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Nicotine in Indonesia?
- Which are the leading brands in Nicotine in Indonesia?
- How are products distributed in Nicotine in Indonesia?
- Which category is the most heavily taxed in Indonesia?
- How is the operating environment for Nicotine changing?
- What are the current legislative restrictions applicable to the sale of Nicotine products in Indonesia?
- How has COVID-19 impacted demand?
- How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
- Where is future growth expected to be most dynamic?
Nicotine in Indonesia
2025 Developments
Key Data Insights
Affordability Constraints Reshape Nicotine in Indonesia as Buyers Transition to Value-For-Money Alternatives
Demand for Better Value and Sensory Experience Fuels the Rise of Open Vaping Systems and Heated Tobacco
Young Indonesian Adults of Legal Smoking Age Elevate Cigars as Symbols of Status and Luxury
Cigarette Smokers Anticipated to Shift to Kretek as Affordability Shapes Demand
Heated Tobacco Expected to Surge as Younger Adults of Legal Smoking Age Seek Alternatives
Excise Hikes and Lifestyle Trends Projected to Reshape Product Innovation and Pricing
Foom Lab Global Pt Leverages Influencer Marketing as Djarum Pivots to Premium Hand-Rolled Kretek
Indomaret Drives Product Visibility as Specialist Stores Retain Premium Focus
Indomaret and Hm Sampoerna Partnership Boosts Heated Tobacco Uptake
Tokopedia Secures Exclusive Iqos Partnership Amid Strict E-Commerce Controls
Djarum 76 Apple Drives Competitive Differentiation
Relx Exemplifies Innovation in E-Vapour Products
Legislation
Legislative Overview
Minimum Legal Smoking Age
Smoking Prevalence
Tar Levels
Health Warnings
Plain Packaging
Advertising and Sponsorship
Point-Of-Sale Display Bans
Smoking in Public Places
Flavoured Tobacco Product Ban
Vapour Products
Production/Imports/Exports
Cigarettes in Indonesia
Key Data Insights
Cigarettes Summary
Djarum and Sampoerna Drive Down Prices to Capture Demand
Hand-Rolled Kretek Emerges as Leading Product Type
Manufacturers Adapt to Consumer Demand for Affordability
Hand-Rolled Kretek Manufacturers Anticipated to Expand as Price Pressures Persist
Tax Policy Stabilisation Expected to Alter Pricing and Demand Dynamics
Djarum Surpasses Gudang Garam Tbk Pt as Innovation Shifts Market Shares
Djarum Launches Djarum 76 to Capture Low- and Middle-Income Consumers
Small Local Grocers Drive Widespread Cigarette Distribution and Accessibility
Regulatory Measures Restrict E-Commerce Share Gains for Cigarettes
Taxation Rates
Sampoerna and Djarum Leverage Tax Strategies to Boost Affordable Options
Product Innovation Accelerates as Smoking Habits and Preferences Evolve
Cigars, Cigarillos and Smoking Tobacco in Indonesia
Key Data Insights
Cigars, Cigarillos and Smoking Tobacco Summary
Djarum Pivots to Ceremonial Sales as Demand Wanes
Smoking Tobacco Outpaces Cigars as Price Drives Choice
Ceremonial Use Shapes Brand Strategy as Daily Demand Fades
Young Adults of Legal Smoking Age Expected to Drive Lifestyle-Led Demand for Premium Cigars
Smoking Tobacco Set to Extend Dominance, as Affordability Steers Consumer Choice
Distribution Constraints and Regulation Anticipated to Limit Visibility for Cigars and Cigarillos
Indonesian Tobacco Tbk Pt Expands Dominance as Rivals Lose Share
Tobacco Specialist Stores Maintain Dominance as Mainstream Outlets Retreat
Online Platforms Struggle to Gain Traction Amid Niche Demand and Regulatory Barriers
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Indonesia
Key Data Insights
Smokeless Tobacco, E-Vapour Products and Heated Tobacco Summary
Rising Health Awareness Drives Shift to E-Vapour Products and Heated Tobacco
E-Vapour Products Remain the Largest, While Heated Tobacco Experiences Robust Growth
Wickham Pivots to Open Vaping Systems to Meet Regulation and Value Demand
Consumer Demand Anticipated to Shift as Regulations Reduce E-Vapour Appeal
Tightening Regulations Expected to Influence Nicotine Choices Towards Heated Tobacco Products
Foom Lab Global Pt Accelerates Share Gains as Competitors Consolidate
Iqos Veev and Indomaret Partnerships Redefine In-Store Visibility and Access
Iqos Veev Leverages E-Commerce Exclusivity with Tokopedia to Expand Reach
Country Reports Disclaimer
The following categories and subcategories are included:
Nicotine
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- Fine Cut Cigarettes
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- Cigarettes (Illicit+Legal)
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- Cigars
- Cigarillos
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- Pipe Tobacco
- Fine Cut Tobacco
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- Chewing Tobacco
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- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
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- Closed System Single Use
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- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
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- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
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- Tobacco Heating Devices
- Heated Tobacco
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- Nicotine Pouches
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- Closed System Single Use (Illicit+Legal)
- Closed System Cartridges (Illicit+Legal)
- E-Liquids (Illicit+Legal)
Nicotine
Passport Nicotine covers the seven major nicotine categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.
See all of our definitionsWhy buy this report?
- 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
This report originates from Passport, our Nicotine research and analysis database.
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