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Tobacco in Vietnam
July 2022
Tobacco in 2021: The big picture
In 2021, Vietnam saw periodic recurrent waves of COVID-19, which led to a nationwide lockdown from May until October. Under the impact of COVID-19, volume sales of illicit cigarettes witnessed a decline due to the closure of borders, as well as strict controls.
2021 key trends
Both e-vapour products and heated tobacco are gaining popularity among young smokers in Vietnam with these products perceived to have a less harmful image. However, due to the negative health effects of e-cigarettes and shisha, particularly on young people, and concerns over their effect on social order and security, the Ministry of Health is working with the Ministry of Industry and Trade to propose that the government and the National Assembly ban the use and import of e-cigarettes and shisha into Vietnam, with this ban expected to come into force in the forecast period.
Competitive landscape
Vietnam National Tobacco Corp (Vinataba) continued to dominate cigarettes in retail volume terms in 2021, thanks to the support of the Vietnamese government. Government legislation requires international competing companies to collaborate with Vinataba for the production and distribution of their products in the country.
Retailing developments
Street vendors remained the dominant distribution channel in 2021, being present on most street corners and thus offering the greatest convenience. However, street vendors were mandated to close during the lockdown, and consumers instead shopped for tobacco products at convenience stores and tobacco specialist stores during that time.
What next for tobacco?
Tobacco is expected to demonstrate steady growth over the forecast period as the country moves towards a period of normalisation and an economic recovery. As unemployment falls and consumer confidence starts to return, this should benefit sales of economy cigarettes, which remain the largest contributor to overall retail volume sales of tobacco in Vietnam.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Vietnam 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 Tobacco industry in Vietnam, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Tobacco in Vietnam 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 Tobacco in Vietnam?
Which are the leading brands in Tobacco in Vietnam?
How are products distributed in Tobacco in Vietnam?
Which category is the most heavily taxed in Vietnam?
How is the operating environment for Tobacco changing?
What are the current legislative restrictions applicable to the sale of Tobacco products in Vietnam?
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?
Tobacco in Vietnam
EXECUTIVE SUMMARY
Tobacco in 2021: The big picture
2021 key trends
Competitive landscape
Retailing developments
What next for tobacco?
OPERATING ENVIRONMENT
Legislation
Legislative overviewSummary 1 Legislation Summary at a Glance
Smoking prevalence
Health warnings
Plain packaging
Point-of-sale display bans
Smoking in public places
Flavoured tobacco product ban
Vapour products
PRODUCTION/IMPORTS/EXPORTS
MARKET INDICATORS
Table 1 Number of Adult Smokers by Gender 2016-2021
MARKET DATA
Table 2 Sales of Tobacco by Category: Volume 2016-2021Table 3 Sales of Tobacco by Category: Value 2016-2021Table 4 Sales of Tobacco by Category: % Volume Growth 2016-2021Table 5 Sales of Tobacco by Category: % Value Growth 2016-2021Table 6 Forecast Sales of Tobacco by Category: Volume 2021-2026Table 7 Forecast Sales of Tobacco by Category: Value 2021-2026Table 8 Forecast Sales of Tobacco by Category: % Volume Growth 2021-2026Table 9 Forecast Sales of Tobacco by Category: % Value Growth 2021-2026
DISCLAIMER
SOURCES
Summary 2 Research Sources
Cigarettes in Vietnam
KEY DATA FINDINGS
2021 DEVELOPMENTS
Closure of country’s borders leads to a steep decline in illicit trade, boosting domestic sales of cigarettes instead
Cigarettes continues to see premiumisation in spite of economic uncertainty
Vinataba retains its dominance despite losing further share to its multinational rivals
PROSPECTS AND OPPORTUNITIES
Cigarettes set to return to growth alongside economic recovery
Excise tax increase foreseen for cigarettes in the forecast period
Rising health awareness expected to limit growth in cigarettes
TAXATION AND PRICING
Taxation rates
Summary 3 Taxation and Duty Levies 2016-2021
Average cigarette pack price breakdown
Summary 4 Average Cigarette Pack Price Breakdown: Brand Examples
CATEGORY DATA
Table 10 Sales of Cigarettes: Volume 2016-2021Table 11 Sales of Cigarettes by Category: Value 2016-2021Table 12 Sales of Cigarettes: % Volume Growth 2016-2021Table 13 Sales of Cigarettes by Category: % Value Growth 2016-2021Table 14 Sales of Cigarettes by Blend: % Volume 2016-2021Table 15 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2016-2021Table 16 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2016-2021Table 17 Sales of Cigarettes by Pack Size: % Volume 2016-2021Table 18 Sales of Cigarettes by Price Band: % Volume 2016-2021Table 19 NBO Company Shares of Cigarettes: % Volume 2017-2021Table 20 LBN Brand Shares of Cigarettes: % Volume 2018-2021Table 21 Sales of Cigarettes by Distribution Format: % Volume 2016-2021Table 22 Illicit Trade Estimate of Cigarettes: Volume 2016-2021Table 23 Forecast Sales of Cigarettes: Volume 2021-2026Table 24 Forecast Sales of Cigarettes by Category: Value 2021-2026Table 25 Forecast Sales of Cigarettes: % Volume Growth 2021-2026Table 26 Forecast Sales of Cigarettes by Category: % Value Growth 2021-2026Table 27 Forecast Sales of Cigarettes by Blend: % Volume 2021-2026Table 28 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2021-2026Table 29 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2021-2026Table 30 Forecast Sales of Cigarettes by Pack Size: % Volume 2021-2026Table 31 Forecast Sales of Cigarettes by Price Band: % Volume 2021-2026
Cigars, Cigarillos and Smoking Tobacco in Vietnam
KEY DATA FINDINGS
2021 DEVELOPMENTS
Affluent consumer base sustains growth in cigars
Lack of strong competition and weak distribution a feature of cigars, cigarillos and smoking tobacco
Economic pressures force low-income consumers to reassess their habit
PROSPECTS AND OPPORTUNITIES
Cigars set to continue developing thanks to investment from Vinataba
Little interest in cigarillos
Small but loyal consumer base expected to sustain growth in smoking tobacco
CATEGORY DATA
Table 32 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2016-2021Table 33 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2016-2021Table 34 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2016-2021Table 35 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2016-2021Table 36 Sales of Cigars by Size: % Volume 2016-2021Table 37 NBO Company Shares of Cigars and Cigarillos: % Volume 2017-2021Table 38 LBN Brand Shares of Cigars and Cigarillos: % Volume 2018-2021Table 39 NBO Company Shares of Cigars: % Volume 2017-2021Table 40 LBN Brand Shares of Cigars: % Volume 2018-2021Table 41 Distribution of Cigars and Cigarillos by Format: % Volume 2016-2021Table 42 Distribution of Smoking Tobacco by Format: % Volume 2016-2021Table 43 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2021-2026Table 44 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2021-2026Table 45 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2021-2026Table 46 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2021-2026
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Vietnam
KEY DATA FINDINGS
2021 DEVELOPMENTS
Regulation on e-vapour products and heated tobacco yet to be signed into law
The sale of e-vapour products and heated tobacco remains a grey area with Vinataba not yet distributing these products
Smokeless tobacco continues to attract little interest
PROSPECTS AND OPPORTUNITIES
Vietnam’s Ministry of Health expected to introduce a ban on e-cigarettes and shisha in the forecast period
Young consumers expected to embrace e-vapour products and heated tobacco
Tobacco free oral nicotine expected to maintain a negligible presence in Vietnam
CATEGORY DATA
Table 47 Forecast Sales of Tobacco Heating Devices: Volume 2021-2026Table 48 Forecast Sales of Tobacco Heating Devices: % Volume Growth 2021-2026Table 49 Forecast Sales of Heated Tobacco: Volume 2021-2026Table 50 Forecast Sales of Heated Tobacco: % Volume Growth 2021-2026Table 51 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: Value 2021-2026Table 52 Forecast Sales of Smokeless Tobacco, E-Vapour Products and Heated Tobacco by Category: % Value Growth 2021-2026
The following categories and subcategories are included:
Tobacco
Fine Cut Cigarettes
Cigars
Cigarillos
Pipe Tobacco
Fine Cut Tobacco
Chewing Tobacco
Loose US-Style Moist Snuff
Portion US-Style Moist Snuff
Swedish-Style Snus
Closed System Single Use
Closed System Rechargeable (including starter kits)
Closed System Cartridges
Open Vaping Systems Charging and Vapourising Devices
E-liquids
Tobacco Heating Devices
Heated Tobacco
Nicotine Pouches
Tobacco
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.