Uganda’s tobacco industry is dominated by BAT Uganda and local player Leaf Tobacco & Commodities, with sales limited to cigarettes. Recent years have seen a dramatic shift away from premium cigarette brands as rising prices due to tax increases have made cigarette smoking increasingly unaffordable.
The diminished levels of economic activity seen in Uganda during 2020 and 2021 can be attributed mainly to the impact of the COVID-19 pandemic, compounded by increasing political uncertainty and the strain on the global and regional economy coming from various external factors. According to the 16th Edition of the Uganda Economic Update published by the World Bank in December 2020, Uganda’s GDP grew by 2.
As mentioned above, the huge size of Uganda’s illicit tobacco trade and the strong growth that continues to be seen in illicit trade cigarette volume sales continues to have a very negative impact on the Ugandan tobacco industry. The illicit trade expanded substantially during 2020 and 2021 as the COVID-19 pandemic interrupted commercial activity in key sectors of the Ugandan economy, putting household incomes under pressure and encouraging many smokers to switch to the illicit trade in search of cheaper options.
Uganda is a tobacco producing country with an estimated 75,000 tobacco farmers, which are based mainly in the northwest and southwest of the country. Around half of these farmers produce Burley air cured tobacco, with the remaining farmers growing Virginia flue cured or dark fire cured tobacco.
All companies involved in the distribution of fmcg in Uganda face various challenges, with many of the country’s roads in poor condition. Only around 30% of the country’s entire road network was paved at the end of the review period, although road infrastructure is improving thanks to significant numbers of transportation development projects, funded by substantial loans from the African Development Bank (AfDB).
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Understand the latest market trends and future growth opportunities for the Tobacco industry in Uganda 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:
If you're in the Tobacco industry in Uganda, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
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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