In 2017, vapour products continued to record very strong retail current value sales growth in Ukraine. This is the result of a growing vaping culture in Ukraine, which is being supported by festivals and exhibitions for vapers, especially in big cities.
Vapour products remained largely unregulated by the end of the review period. There is no ban on the distribution or use of these products, while there are also no marketing restrictions.
Heated tobacco products recorded exponential retail current value sales growth in 2017, as Philip Morris pioneered a new area of vapour products in Ukraine. Over the forecast period, heated tobacco products is projected to see very strong retail value sales development as awareness and availability grow.
Vapour products was quite fragmented at the end of the review period, with many distributors focused on offering the leading global brands. However, Chinese companies have a strong presence in the category in Ukraine.
The number of manufacturers and distributors increased towards the end of the review period, as the awareness and popularity of electronic cigarettes rose globally. This made the category more competitive in terms of price.
Philip Morris introduced Iqos and HEETS heated tobacco products in Ukraine in February 2016. In its first year, Iqos could be purchased online via the official website and the IQOS Space boutique in Kiev.
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This report originates from Passport, our Smokeless Tobacco and Vapour Products research and analysis database.
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