The tobacco market in the Russian Federation in 2024 - analysis and forecasts

The Russian tobacco market continues to evolve in the context of changing regulations, consumer preferences and economic factors. In 2024, the market volume was significant, despite strict restrictions and increased excise taxes. According to research, the total volume of tobacco sales in the Russian Federation is stable, although there are changes in the consumption structure.

Tobacco production in Russia remains an important sector of the economy, providing jobs and tax revenues. Major market players such as Philip Morris, British American Tobacco and Donskoy Tabak continue to dominate the cigarette segment, although competition from alternative tobacco products is growing. In 2024, Russian tobacco production will maintain stable volumes, despite external economic challenges.

Imports of tobacco products to Russia have decreased due to the introduction of sanctions and restrictions on supplies. However, domestic producers are partially compensating for this decline by increasing their own production. Exports of Russian tobacco products are showing moderate growth, especially in the CIS countries, where Russian brands are in demand. In 2024, export volumes of cigarettes and alternative tobacco products will make up a significant share of the overall market.

Government purchases of tobacco products remain a small part of total sales. In 2024, regulators continue to strengthen control over tobacco products, including through labeling and tracking mechanisms. The impact of anti-nicotine policies is reflected in the reduction of purchases by government agencies.

The Russian market is represented by both international corporations and local manufacturers. The main players are:

Philip Morris International – the market leader, actively promoting alternative products (IQOS, Heets);
British American Tobacco – owns the brands Kent, Dunhill, Lucky Strike;
"Donskoy Tabak" – one of the largest Russian manufacturers;
Imperial Brands – represented by the brands Davidoff, West;
Japan Tobacco International – produces Winston, LD and other brands.

Cigarettes

Cigarettes remain the most popular type of tobacco product in Russia, but their share is gradually declining due to rising excise taxes and changing consumer preferences.

Cigars and pipe tobacco (premium segment)

The cigar and pipe tobacco segment demonstrates stable demand among premium consumers, but remains niche. 

Hookahs

The popularity of hookahs and hookah mixtures is growing, especially among young people. In 2024, the hookah market is showing positive dynamics. 

Vapes

The segment of vapes and tobacco heating systems is showing steady growth. The ban on flavored liquids may affect the market, but the general trend of abandoning traditional cigarettes in favor of vaping remains.

Average producer prices

Producer prices for tobacco products increased in 2024 due to increased excise taxes and raw material costs. On average, the cost of cigarettes increased by 10-15% compared to 2023.

Average consumer prices

Consumer prices for tobacco products are also showing growth. In Moscow and large cities, the average cost of a pack of cigarettes exceeded 200 rubles.

The market is expected to further develop towards alternative products such as heated tobacco systems and electronic cigarettes. Government regulation will continue to put pressure on the industry, but demand for tobacco products will remain. Moderate price increases and a decrease in consumption of traditional cigarettes are predicted.

The tobacco market in Russia in 2024 remains stable despite strict regulation. Key trends include a decline in the share of traditional cigarettes, an increase in the popularity of vapes and hookahs, and further price increases. Manufacturers are adapting to new conditions, offering consumers innovative products and new consumption formats.