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The withdrawal of European and American tobacco manufacturers and the gradual reduction of foreign e-cigarette brands in Russia due to the Ukraine war have made possible the growth of Chinese e-cigarettes in Russia, according to reports on April 11.
As the Russian tobacco industry is heavily dependent on the support and investment of foreign brands, the withdrawal of international tobacco companies will lead to substantial shortages in the Russian tobacco market, resulting in a significant increase in the price of tobacco products sold in Russia.
By the end of 2021, there are more than 5,000 stores selling e-cigarettes in Russia, including more than 1,100 in the Moscow region.
According to the platform DNA REALTY, the number of tobacco-shops in Russia has grown by at least 20 percent through 2022, with most of the profits coming from e-cigarette sales.
BAT announced that it would withdraw from the Russian and Belarusian tobacco markets in 2023. Philip Morris International (PMI) and its subsidiary Fimo International are also considering retaining their presence in Russia, which is PMI's seventh largest tobacco market.
Japan Tobacco suspended investment in Russia and Imperial Tobacco transferred its Russian operations to a Russian successor.
"E-cigarettes have great potential as an alternative to the tobacco market in Russia, where e-cigarette consumers account for 6.8 percent of smokers." "The article said. "After the United States and Europe, Russia is the third largest importer of electronic nicotine delivery systems (ENDS) in the world."
"China accounts for 90 percent of the global market. In 2021, Chinese exports to Russia amounted to 82.5 billion rubles. This year, they are likely to increase 35 percent to 111 billion rubles."
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