Heated Tobacco and Herbal Units in CIS Market - Overview Report

The report provides a brief overview of heated sticks (heated units for tobacco heating systems) in particular tobacco and herbal heated sticks with nicotine and nicotine-free herbal sticks that are officially and non-officially sold within the CIS market as of middle of 2021. Being one of key and most favourable markets for heated products, the CIS market is presented by 25 brands of heated sticks manufactured by 14 companies. The report is mostly focused on price policy analysis of heated sticks supplied by all possible channels within the CIS region.

Based on the research conducted, the average prices were determined for each type of heated sticks marketed in the CIS region as a whole and each country of the CIS region in particular. The countries with the highest as well as lowest prices for heated sticks were determined. The report also contains conclusions about the countries with the most favourable markets for releasing new brands of heated sticks based on market competitiveness vs. price policy comparative analysis. The research also ranks the countries by number of heated sticks brands marketed officially and non-officially within the CIS region as well as differentiates the countries with the most and least developed illicit markets of heated sticks.

CIS market is one of key markets for heated tobacco products due to huge number of active users and favourable conditions for those engaged in manufacturing, distribution and retail of such kind of products. At present, the heated sticks are represented by 25 brands (from 14 manufacturers) within the CIS countries. The majority of heated sticks sold in the CIS region is manufactured and distributed by Big Tobacco companies. Some of these companies have production facilities within the CIS countries.

The shadow market is rather expanded within the CIS region, though there some countries without illicit segment as well as countries where heated sticks are not officially marketed. Based on price analysis, we differentiated the countries with the highest and lowest prices for heated sticks separately in official and illicit markets. The prices for heated sticks are significantly lower in the countries where brands were officially launched as prices in the illicit market are set based on end-consumer demand and supply by illegal traders. Based on analysis of market competitiveness vs. price policy, the most favourable markets for the release of new brands of heated sticks were also determined.