Issue link: https://read.dmtmag.com/i/1531857
68 tobaccoasia Issue 1, 2025 January / February By Eugene Gerden Russia is experiencing steadily rising demand for tobacco alternatives, particularly aromatic ciga- rettes, cigarillos, and vapes. Import volumes of these products into the domestic market have sig- nificantly increased since the beginning of 2024. Data from CRPT, the operator of Russia's flagship Honest Sign tobacco labeling system, indicates a quarterly supply growth of 30% dur- ing Q2 and Q3 of this year. A similar increase in imports has been observed for traditional tobacco products, especially cigarettes, which are now pri- marily imported from Belarus and the UAE due to lower production costs and reduced taxes. Mean- while, the majority of vapes entering the Russian market are imported from China. The CRPT reports that traditional tobacco products, particularly cigarettes, still dominate the overall import structure. However, the share of tobacco alternatives is expanding rapidly, with growth rates far outpacing those of conventional tobacco products. Maxim Korolev, head of the Russian Ta- bak agency, one of Russia's leading research firms specializing in the tobacco market, highlighted the growing demand for premium tobacco alterna- Russia's Tobacco Market: Surge in Alternatives and Growth tives, such as aromatic cigarettes, in an interview with the Russian business newspaper, Kommer- sant. He noted that the market remains highly competitive, with numerous foreign manufactur- ers participating, none of which hold a dominant market share. Korolev also suggested that the growing in- terest in aromatic cigarettes and cigarillos may be partly attributed to last year's restrictions on elec- tronic nicotine delivery systems (ENDS) in Russia, as well as the implementation of a ban on the free display of tobacco products. "This led to the clo- sure of vape shops and could stimulate consum- ers to switch to aromatic cigarettes in traditional retail," he said. The sustained high demand for premium tobacco alternatives can also be attributed to the current growth in the Russian economy, driven by a boom in the local military-industrial complex. This economic surge significantly increased the purchasing power of millions of domestic con- sumers, particularly those employed in the military sector, individuals signing direct contracts with the Russian army, and their families. Demand for traditional and alternative tobacco products continue to grow in Russia. Credit: Stas Svechnikov, Creative Commons.