The Cigarette Market in Kazakhstan

Product Code: CG0159MR

Published Date: June 2015

Report Price: US$ 975 (Single Copy)

Synopsis “Cigarettes in Kazakhstan” report is a qualitative report providing extensive and highly detailed consumption

data on the Cigarettes industry in Kazakhstan.

This report is the result of ERC’s extensive market research covering Cigarettes across Kazakhstan.

The report provides consumption data based upon a unique combination of industry research,

fieldwork, market sizing work and our in-house expertise in the Cigarettes industry in order to offer

extensive data about the trends and dynamics affecting the Cigarettes industry.

This report is aimed at companies operating in the Cigarettes industry and for new companies

considering entry into Cigarettes industry.

This report provides detailed data of the manufacturers operating in the Cigarettes industry in

Kazakhstan.

This report also provides market size of the Cigarettes industry in Kazakhstan along with other data

relating to the regulations, retail price, smoking population, production & trade and forecast data

Summary “The Cigarette Market in Kazakhstan” is a new report by ERC that focuses on the extent to which Kazakhstan

Cigarettes market has evolved in line with changing smoking habits, the competitive environment and

economic developments, as well as analyzing the implications market realignments have had on top

multinational companies.

Scope

This report provides a comprehensive analysis of Cigarettes market in Kazakhstan

It provides volume and per-capita consumption of cigarettes for 2013 and forecast figures for 2023

It provides value and volume break-up of the Cigarettes market at segment level.

Reasons to Buy Cigarettes companies require a detailed understanding of Cigarettes consumption in order to align their sales

and marketing efforts with the latest trends in the market. This report clarifies in detail, by region and

company, where the growth opportunities are in Cigarettes industry to enable effective marketing plan

As consumers’ product demands evolve, the dynamics between different countries also change – favoring

some countries and leaving others increasingly out of line with demand patterns. As a result, understanding

the shifting market dynamics is key to ensuring maximum sales in the future

The differing growth rates in overall regional product sales drive fundamental shifts in the market. This report

provides detailed, authoritative data on these changes for marketers

The report provides the latest data on market dynamics in the Cigarettes industry across Kazakhstan,

providing marketers with essential data in order to understand their own position in the market and to identify

where to compete in the future.

1 Market Size

More recently, rising prices as a result of increases in the excise rate applied to cigarettes have reduced demand. An 18.6% fall in demand followed in 2010, to XX billion pieces, with 2011 seeing a reduced 3.4% fall to XX billion pieces, as economic growth of 7.5% lessened the impact of the latest excise duty increase. A more dramatic 6.5% fall in volumes followed in 2012 as excise rates were hiked even more than they were in 2011. Volumes dropped again in 2013 by 7.3% with rising prices brought about by a rise in excise duty once more the key factor. By the end of the year volumes amounted to XX billion pieces, 46.2% down on those achieved in 2008, but still 24.8% above 1990 levels. Forecasts for 2014 remain pessimistic with a 93.5% hike in filter cigarette duty set to reduce sales by a further 12.6% to XX billion pieces.

Cigarette Consumption, 1990-2014

Million Pieces % Annual Change Index 1990 = 100.0

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Per Capita Consumption, 1990-2014

Per Capita Consumption

Population Millions

Pieces/Day Pieces/Week Pieces/Year % Change Index 1990 = 100.0

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2 Production and Trade

Cigarette production was down 5.1% in 2013 at XX billion pieces, though this is still more than double 1990 levels. However, current output is below the recent 2008 high of XX billion pieces. Local cigarette production is estimated to have stood at around XX billion pieces at the beginning of the 1990s, but fell sharply over the next two years as a result of economic and supply problems resulting from the collapse of the Soviet system.

Cigarette Production, 1990-2013

Million Pieces % Annual Change Index 1990 = 100.0

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Imports of Cigarettes, 1990-2013

Million Pieces % Change As % of Consumption

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Cigarette Exports, 1998-2013

Million Pieces % Change

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Methodology

ERC’s research methodology includes the following steps in order to ensure a robust research programme to deliver the highest quality market insights: Information Scanning Thorough investigation of all published sources worldwide to highlight gaps and decide means of obtaining information requirements. Economic Intelligence Gathering all relevant: • Statistical data • financial information • Industrial data • economic information Collection of Published Research A thorough search to identify and obtain relevant published material using: • Media sources • corporate literature • Trade journals • on-line services • ERC databank • national press • Research institutes. In-Country Research Field research conducted in each country designed to: • collect informed and up-to-date information from interviews to gauge attitudes, expectations and current market developments. • monitor product and brand availability, prices and facings allocation through specially commissioned retail store checks. In-House Research & Analysis Based on a solid knowledge of the current market scenario and years of experience in the area of global tobacco market research, further telephone interviews are carried out with leading manufacturers and

industrial competitors. The result is first-hand knowledge of new product developments, user-ship patterns, new investments and inherent market trends.

About ERC – a division of Canadean

Canadean is a full-service business information provider with in-house market research capabilities. We specialize in analysis across the Consumer Markets Value Chain, covering suppliers, producers, distribution, and consumers. Canadean’s dedicated research and analysis teams consist of experienced professionals with an industry background in marketing, market research, consulting, and advanced statistical expertise. We offer value-added market research, insight, and strategic analysis and our products help companies to make better, more informed, strategic and tactical sales, and marketing decisions. Canadean’s areas of expertise include online research, qualitative and quantitative research, industry analysis, custom approaches, and actionable insights. In addition, Canadean has built a network of consultants and specialist researchers across more than 60 countries, each with in-depth industry experience and expertise enabling us to conduct unique and insightful research via our trusted business communities. ERC's analysts and researchers are thoroughly experienced within the tobacco industry, with over 30 years’ experience of researching this challenging area. Their knowledge and expertise of specific market drivers, industry developments as well as regulatory and operating constraints in tobacco industry, ensure that clients benefit completely from ERC's high standards of research methodology and industry insights.

Disclaimer

All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Canadean. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Canadean delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such, Canadean can accept no liability whatsoever for actions taken based on any information that may subsequently prove to be incorrect.

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The Cigarettes Market in Uzbekistan

The Cigarettes Market in Hungary

The Cigarettes Market in Poland

The Cigarettes Market in Romania

The Cigarettes Market in Russia

The Cigarettes Market in Belgium

The Cigarettes Market in Ukraine

The Cigarettes Market in Czech Republic

Table of Contents

Overview 1-2 Market Size 3-6

Cigarette Consumption, 1990-2014 5

Per Capita Consumption, 1990-2014 6

Market Structure 7-10

Market Breakdown: Domestic v Imported, 2000-2013 8

Market Segmentation by Price Sector, 2003-2006 & 2008-2010 9

Manufacturers & Brands 11-16

Manufacturer Sales & Market Shares, 2000-2014 14-15

Brand Shares, 2010, 2012 & 2013 16

Taxation & Retail Prices 17-20 Taxation 17-18

Excise & VAT Rates, 2010-2015 17

Retail Prices 18-19 The Smoking Population 21-24

Smoking Population, 1990-2013 22

Smoking Prevalence by Age Group & Gender, 2001 & 2010 23

Use of Tobacco, 2012 23

Production & Trade 25-32

Production 25-27

Production of Cigarettes, 1990-2013 26

Production by Company, 2013 27

Imports 27-29

Imports of Cigarettes, 1990-2013 29

Cigarette Imports by Country of Origin, 2000-2013 29

Exports 30-32 Cigarette Exports, 1998-2013 31

Cigarette Exports by Country of Destination, 2005-2013 32

Operating Constraints 33-34

Advertising Restrictions 33

Health Warnings 33-34

Other Restrictions 34

Company Profiles 35-38

Philip Morris Kazakhstan 35

JTI Central Asia 36

CNTIEC-Kazakhstan 37

Prospects & Forecasts 39-40

Consumption Forecasts to 2023