As the effect of COVID-19 on the industry remained very limited and did not restrict the distribution of tobacco in Pakistan, sales of tobacco grew overall in 2021. With smoking prevalence remaining stable in the country, prices increased as the government continued to raise taxes in an attempt to curb demand.
The niche of e-vapour products continued to achieve greater appeal in 2021, especially among younger adults as these products are becoming more acceptable than traditional cigarettes. They are increasingly seen as a status symbol, with there being a certain level of aspiration attached to the category due to its higher price points, and a “cool” alternative to cigarettes.
Despite the pressure of rising prices and taxation as well as a shift towards illicit trade that was witnessed especially among lower-income consumers, Pakistan Tobacco Company Ltd continued to grow its dominant share of the highly-concentrated category of cigarettes in 2021. Meanwhile, second-placed player Philip Morris (Pakistan) Ltd’s retail volume share declined slightly further in 2021, continuing to be eroded by the ongoing success of Pakistan Tobacco Company’s more affordably priced Capstan By Pall Mall.
Newsagent-tobacconists/kiosks remained the dominant distribution channel for cigarettes in Pakistan in retail volume terms in 2021, followed by street vendors. No change in retailing distribution took place in 2021 and COVID-19 had no impact on this since restrictions were largely lifted.
Over the forecast period, volume sales of illicit tobacco are expected to grow while legal retail volume sales are set to continue to decline in line with price hikes and taxation increases by the government to reduce smoking prevalence amongst the adult population. This will prompt more people to shift to illicit trade, which is projected to gain a much greater volume share of total sales by the end of the forecast period.
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Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
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Passport Tobacco covers the seven major tobacco 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 Definitions
This report originates from Passport, our Tobacco research and analysis database.
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