28.10.2024, 09:17
Russians switched from tobacco to tea
Source: OREANDA-NEWS
OREANDA-NEWS From January to October 2024, the popularity of tobacco-free tea-based sticks in Russia increased two to five times. The transition of Russians from tobacco to tea, with reference to market participants, is reported by Kommersant.
Tobacco-free sticks for IQOS, glo and other brands of heating systems contain tea leaves soaked in nicotine. As previously reported by Reuters, British American Tobacco (BAT) is increasing the production of sticks with rooibos due to restrictions on the use of flavors in the European Union. Philip Morris began to actively use sticks based on vegetable cellulose.
According to manufacturer J&J Herbal Heating Technology, sales of Chinese Lono sticks have increased fivefold year-on-year since the beginning of the year. Sales of the Chinese brand Neafs have doubled. According to a survey by the Fedotov Group consulting agency, almost a third (32 percent) of stores sell tobacco-free sticks.
At the same time, sales of heated tobacco in the second quarter of 2024 decreased by 7.5 percent year-on-year. The reason is called the higher cost — tobacco-free products are on average 15-25 percent cheaper than usual due to the lack of excise taxes. However, starting from January 1, 2025, the Ministry of Finance promises to make consumables for heating systems excisable.
According to the Center for the Development of Advanced Technologies (CRPT; operator of the Honest Sign labeling system), Russians' spending on cigarettes increased in the first half of 2024. Since the beginning of the year, retail chains and tobacco stores have earned 659 billion rubles — 19 percent more than in 2023 and 39 percent more than in 2022, respectively. Sales volumes also increased in physical terms by 10 percent.
Tobacco-free sticks for IQOS, glo and other brands of heating systems contain tea leaves soaked in nicotine. As previously reported by Reuters, British American Tobacco (BAT) is increasing the production of sticks with rooibos due to restrictions on the use of flavors in the European Union. Philip Morris began to actively use sticks based on vegetable cellulose.
According to manufacturer J&J Herbal Heating Technology, sales of Chinese Lono sticks have increased fivefold year-on-year since the beginning of the year. Sales of the Chinese brand Neafs have doubled. According to a survey by the Fedotov Group consulting agency, almost a third (32 percent) of stores sell tobacco-free sticks.
At the same time, sales of heated tobacco in the second quarter of 2024 decreased by 7.5 percent year-on-year. The reason is called the higher cost — tobacco-free products are on average 15-25 percent cheaper than usual due to the lack of excise taxes. However, starting from January 1, 2025, the Ministry of Finance promises to make consumables for heating systems excisable.
According to the Center for the Development of Advanced Technologies (CRPT; operator of the Honest Sign labeling system), Russians' spending on cigarettes increased in the first half of 2024. Since the beginning of the year, retail chains and tobacco stores have earned 659 billion rubles — 19 percent more than in 2023 and 39 percent more than in 2022, respectively. Sales volumes also increased in physical terms by 10 percent.
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