Tobacco market in Azerbaijan

Azerbaijan's tobacco market is one of the most competitive and dynamic ones among national markets of tobacco industry. It offers about 50 brand families and 110 cigarette name items, so this indicates a wide variety of offers and, at the same time, a high level of competition.

Market dynamics is defined by the availability of a great selection of cigarette formats. Modern cigarette formats such as Slims and King Size Super Slims are gaining more popularity. For the past year, their common share has increased by a quarter and presently constitutes 42.82% (according to AC Nielsen, October 2011).

Market segmentation according to the degree of flavour also reveals a tendency for a growing demand for cigarettes with a relatively low tar and nicotine content. Azerbaijan differs from many other European markets by Azerbaijani smokers mainly preferences to cigarettes of low flavour with 1-8 mg tar. These cigarettes occupy up to 55% of the market. Within this range, the cigarette segment with the tar amount at 1-4 mg takes about 30% of the market and growing.

Presently over 45% of cigarettes realised in Azerbaijan are represented in the low to medium price segment. The price of these products does not exceed 0.80 AZN per a pack. In the past year, the share of cigarettes in the low and medium segment increased by 5.7%. At the same time good stability level is indicated by the so-called High & Premium segment, which today accounts for over 50% of the local market.