In 2015, vapour products continued to gain popularity amongst Russians. There was dynamic current value growth of 115% in 2014, thanks to widening distribution via convenience stores and traditional grocery retailers and the introduction of a tighter public smoking ban for tobacco. Growth however slowed to 20% in 2015. This slower growth was linked to consumers' economic concerns. However, growth remains strong due to stricter controls over tobacco smoking, including a strict public smoking ban and sharp tax increases. Growth is also being fuelled by a growing number of products and players and these players' focus on pushing for wider distribution.
Vapour products remains highly fragmented, with numerous brands and fluctuating sales chiefly driven by distribution reach. There is thus no clearly established leader, with many distributors present focused on offering leading global brands. Among these companies there are some with a stronger presence, however, with Vardex and Safesmoking having a well-established distribution reach in major cities.
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This industry report originates from Passport, our Tobacco market research database.