Russia Tobacco Market

Russia's tobacco market has experienced gradual change and consolidation in recent years due to the introduction of stringent anti-tobacco legislation and an increasingly health-conscious population. in spite of this, russia retains a significant presence in the global tobacco market.the implementation of the world health organization's framework convention on tobacco control (who fctc) in 2014 introduced a wide-ranging set of taxes and regulations on tobacco products sold in russia. this has led to a significant decline in the overall market size, with total revenue decreasing from more than rub 620 billion (us$ 10.2 billion) in 2014 to rub 551.3 billion (us$ 9.1 billion) in 2017.the decline in the overall market size has been accompanied by a shift in the product mix, as consumers increasingly turn to cheaper, lower quality products. this has led to a substantial growth in the market share of illicit and counterfeit cigarettes, which have been estimated to comprise up to half of all cigarettes sold in russia.it is estimated that the total tobacco market in russia will continue to contract in the next few years, with total revenue expected to reach only rub 455 billion (us$ 7.6 billion) in 2032. this will be driven by a combination of continued enforcement of existing legislation, an aging population, and an ongoing decline in smoking rates. furthermore, increasing scrutiny from international anti-tobacco groups is likely to lead to further restrictions on the sale and consumption of cigarettes in the near future.the russian government is also encouraging the growth of the domestic cigar industry in an attempt to boost tobacco product exports and reduce the country's reliance on imported cigarettes. this may lead to an increase in the share of cigars and loose tobacco in the overall product mix in the coming years.in conclusion, the outlook for the russian tobacco market remains unclear. although existing legislation and the ongoing move towards a healthier lifestyle have led to a decrease in the market size, the prospect of stronger restrictions and the encouragement of cigar and loose tobacco production could see the market stabilize in the next decade. it is important that the government and tobacco industry work together to ensure that the russian tobacco market continues to make positive strides towards a healthier, more sustainable future.