Azerbaijan: Tobacco Market 2025

Tobacco Market Size in Azerbaijan

In 2021, the Azerbaijani tobacco market increased by 20% to $X, rising for the fourth consecutive year after three years of decline. Overall, consumption saw significant growth. Over the period under review, the market reached the maximum level in 2021 and is likely to see steady growth in years to come.

Tobacco Production in Azerbaijan

In value terms, tobacco production contracted modestly to $X in 2021 estimated in export price. Overall, the total production indicated a tangible expansion from 2012 to 2021: its value increased at an average annual rate of +4.9% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, production increased by +44.6% against 2015 indices. The pace of growth appeared the most rapid in 2014 with an increase of 38% against the previous year. Over the period under review, production hit record highs at $X in 2020, and then dropped in the following year.

Tobacco Exports

Exports from Azerbaijan

In 2021, approx. X tons of tobacco (smoking tobacco, chewing tobacco, snuff) were exported from Azerbaijan; increasing by 163% against 2020. Overall, exports enjoyed a significant increase. The growth pace was the most rapid in 2017 when exports increased by 3,200%. The exports peaked in 2021 and are expected to retain growth in the near future.

In value terms, tobacco exports skyrocketed to $X in 2021. Over the period under review, exports saw a significant increase. The most prominent rate of growth was recorded in 2017 when exports increased by 587%. Over the period under review, the exports hit record highs in 2021 and are expected to retain growth in the near future.

Exports by Country

Afghanistan (X tons), Kyrgyzstan (X tons) and Russia (X tons) were the main destinations of tobacco exports from Azerbaijan, with a combined 86% share of total exports. Georgia and the UK lagged somewhat behind, together comprising a further 11%.

From 2012 to 2021, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by the UK (with a CAGR of +153.7%), while the other leaders experienced more modest paces of growth.

In value terms, Kyrgyzstan ($X), Afghanistan ($X) and Russia ($X) appeared to be the largest markets for tobacco exported from Azerbaijan worldwide, together comprising 78% of total exports. Georgia and the UK lagged somewhat behind, together accounting for a further 14%.

The UK, with a CAGR of +251.6%, saw the highest rates of growth with regard to the value of exports, in terms of the main countries of destination over the period under review, while shipments for the other leaders experienced more modest paces of growth.

Export Prices by Country

In 2021, the average tobacco export price amounted to $X per ton, reducing by -32.1% against the previous year. Overall, the export price saw a deep setback. The pace of growth was the most pronounced in 2016 an increase of 761% against the previous year. As a result, the export price reached the peak level of $X per ton. From 2017 to 2021, the average export prices failed to regain momentum.

Prices varied noticeably by country of destination: amid the top suppliers, the country with the highest price was the UK ($X per ton), while the average price for exports to Russia ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to the UK (+38.6%), while the prices for the other major destinations experienced a decline.

Tobacco Imports

Imports into Azerbaijan

In 2021, supplies from abroad of tobacco (smoking tobacco, chewing tobacco, snuff) increased by 2.6% to X tons, rising for the fourth year in a row after three years of decline. Over the period under review, imports posted a significant increase. The pace of growth appeared the most rapid in 2013 when imports increased by 667%. Over the period under review, imports reached the peak figure in 2021 and are likely to continue growth in the immediate term.

In value terms, tobacco imports skyrocketed to $X in 2021. In general, imports recorded significant growth. The most prominent rate of growth was recorded in 2013 when imports increased by 1,723% against the previous year. Over the period under review, imports reached the peak figure in 2021 and are expected to retain growth in the immediate term.

Imports by Country

In 2021, Ukraine (X tons) constituted the largest tobacco supplier to Azerbaijan, accounting for a 85% share of total imports. Moreover, tobacco imports from Ukraine exceeded the figures recorded by the second-largest supplier, Russia (X tons), more than tenfold. India (X tons) ranked third in terms of total imports with a 1.8% share.

From 2012 to 2021, the average annual growth rate of volume from Ukraine stood at +31.7%. The remaining supplying countries recorded the following average annual rates of imports growth: Russia (+23.7% per year) and India (+7.6% per year).

In value terms, Ukraine ($X) constituted the largest supplier of tobacco (smoking tobacco, chewing tobacco, snuff) to Azerbaijan, comprising 89% of total imports. The second position in the ranking was taken by Russia ($X), with a 6.3% share of total imports. It was followed by India, with a 1.9% share.

From 2012 to 2021, the average annual rate of growth in terms of value from Ukraine amounted to +52.1%. The remaining supplying countries recorded the following average annual rates of imports growth: Russia (+60.4% per year) and India (+34.8% per year).

Import Prices by Country

The average tobacco import price stood at $X per ton in 2021, growing by 33% against the previous year. Overall, the import price continues to indicate a significant expansion. The most prominent rate of growth was recorded in 2013 an increase of 138% against the previous year. The import price peaked in 2021 and is expected to retain growth in the near future.

Prices varied noticeably by country of origin: amid the top importers, the country with the highest price was Ukraine ($X per ton), while the price for Brazil ($X per ton) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Russia (+29.7%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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