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Learn moreJul 2020
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The outbreak of the COVID-19 pandemic is slowing of growth in value sales of tobacco somewhat in 2020, but the degree of that shift in growth is nevertheless varying according to category. Cigarettes, for example, are seeing a negligible value sales decline in 2020—although they are continuing to see a retail volume sales decline just as they did during the review period—while cigars, often considered a premium purchase, are seeing more significant declines in light of the pandemic-related economic unease being felt by consumers.
On 24 March, the country went into quarantine, before then closing its borders and going into complete lockdown on 5 April. Borders had previously been closed in part, with cross-border movement with Turkey stopping on 15 March and three days later with Russia.
In January 2019, the excise tax on cigarettes was raised to AZN28 per 1,000 units for imported cigarettes and to AZN20 per 1,000 units for domestic cigarettes. This carried on a trend seen in recent years that has pushed cigarettes prices upward.
With the exception of successful domestic manufacturer and distributor Cahan Tobacco, tobacco in Azerbaijan was ruled by large multinationals in 2019. As in other national markets, in Azerbaijan multinationals typically can afford to significantly outspend domestic players in nearly every important production and marketing category.
Over the forecast period, the sales performance of tobacco products is expected to be affected significantly by the ongoing pandemic-related economic uncertainty and consumers’ concerns about the impact of rising unemployment on their spending. Indeed, elevated price-sensitivity is expected to prompt many smokers in the large cigarettes category to downtrade to economy brands, while convincing some others to tap into the growing illicit trade.
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Overview
Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in Azerbaijan 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 Tobacco industry in Azerbaijan, our research will save you time and money while empowering you to make informed, profitable decisions.
When you purchase this report, you also get the data and the content from these category reports in Azerbaijan for free:
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This industry report originates from Passport, our Tobacco market research database.
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.