In 2024, Azerbaijan’s tobacco market remained relatively stable, despite ongoing shifts in consumer preferences, rising excise taxes, and regulatory developments. While smoking prevalence stayed largely unchanged and continued to be the main driver of cigarette sales, the legal cigarette market declined, mainly due to a significant increase in illicit trade. At the same time, alternative nicotine products, including e-vapour and heated tobacco, gained momentum, supported by new entrants and expa

Despite government efforts to raise excise taxes, ban advertising, and impose restrictions, smoking prevalence in Azerbaijan saw only a slight decline in 2024. While the consumption of legal cigarettes decreased, there was a sharp rise in illicit trade in the year. In the capital, it remains relatively easy to purchase cigarettes without excise stamps. In response, border control services have intensified efforts to combat illegal imports, including shipments arriving via the Caspian Sea.

Cigars and cigarillos continued to record modest growth in Azerbaijan in 2024, although both categories remain niche. The cigar smoking culture is limited, with cigars generally perceived as luxury items, which restricts their accessibility - especially outside major urban centres - due to relatively high prices. While demand for premium cigarettes is growing, offering consumers a more accessible form of "luxury", cigars and cigarillos retain only a small share of the market. Their growth is fur

E-vapour products in Azerbaijan continued to grow rapidly in 2024, driven primarily by the expansion of closed system single use. Despite a significant excise tax increase - AZN0.25 to AZN2.00 per unit - the category maintained strong momentum. Unlike countries such as Kazakhstan and Uzbekistan, where e-vapour products have been officially banned, Azerbaijan has not implemented such restrictions, although discussions about regulations are ongoing. For now, e-vapour products remain widely availab

Although wine in Azerbaijan performed positively on the whole in 2024, growth in total volume sales fell below that recorded in 2023. This was due to slowing demand at the on-trade level as many consumers continued to exercise greater caution in their spending habits following the spike in the cost of living towards the end of the review period. However, the downturn was mitigated by rising inbound tourist numbers and the easing of inflationary pressures, which supported a nascent recovery in pu

Growth in total volume sales of beer in Azerbaijan in 2024 was up on that recorded in 2023. This was primarily thanks to the alleviation of pricing pressures and increased discretionary spending by consumers amidst falling inflation and other favourable macroeconomic indicators. Frequent new launches, sustained investment in marketing activities and improvements in distribution coverage for various brands also helped to lift overall demand. These factors had a particularly positive impact on on-

While alcoholic drinks in Azerbaijan saw growth in total volume sales pick up in 2024, growth in total current value sales fell well below that recorded in 2023. The slowdown in value terms was primarily explained by greater price stability as the recent spike in inflation rapidly receded. However, the resultant easing of cost-of-living pressures strengthened confidence and purchasing power among local consumers, and this helped to buoy demand across the market, particularly at the retail level.

Total volume sales of cider/perry in Azerbaijan declined at a high double-digit rate in 2024. The collapse in demand – which began in 2023 – was mainly explained by reduced investment in the distribution and promotion of Somersby, the dominant brand. With interest having remained low throughout the review period, manufacturer Carlsberg scaled back support for the brand in order to focus more on other areas of the local alcoholic drinks market with better growth prospects. That Somersby and rival

Total volume sales of spirits in Azerbaijan grew at a very modest rate in 2024, and one that was well down on 2023. This was primarily attributable to the poor showing of vodka, the dominant category, which only managed to post marginal growth in this respect due to its maturity and the increasing preference for alternatives such as whiskies, gin, rum and bitters. The negative impact of these factors was most evident at the retail level, where vodka consumption declined for a third consecutive y

RTDs in Azerbaijan showed a modestly improved performance in terms of total volume sales growth in 2024. It was among the areas of the local alcoholic drinks market that profited most from the continued expansion of the population of legal drinking age, as these types of products are primarily consumed by young adults. Buoyant demand also reflected strong interest in new and recent launches. Most notably, after having historically been mainly represented by products modelled on classic but basic

The number of households is set to increase moderately, while the average household size will shrink in Azerbaijan over 2024-2029. Extended ("Other") households will remain the dominant household type but the fastest household expenditure growth is forecast to be recorded by single person households. In addition, the share of households living in urban areas is projected to expand to 60% by 2029.

Value sales of skin care increased in current value terms in Azerbaijan in 2024, outperforming the beauty and personal care market overall. Consumers are becoming more aware of the importance of skin health, with skin care gradually evolving into a key part of everyday routines. Access to information through online platforms, social media, and dermatologist recommendations continues to fuel interest and education within this space.

Sales of deodorants in Azerbaijan increased in current value terms in 2024, although growth lagged behind that of the beauty and personal care market overall. A greater focus on personal hygiene and self-care - particularly among younger and urban consumers – was a key driver of demand. The long and hot summer season further supported the frequent use of deodorants, especially antiperspirants with enhanced protection.

Sales of fragrances in Azerbaijan increased strongly in current value terms in 2024. This growth follows a previous shortage in the market, with shelves now being replenished and a wider range of products becoming available. Companies are also increasing their investments in the development and promotion of fragrance offerings, supporting overall category expansion. Mass women’s fragrances remained the largest category in 2024. This is primarily due to ongoing consumer price sensitivity, with ma

Sales of hair care products in Azerbaijan saw healthy growth in current value terms in 2024. Consumers are increasingly focused on maintaining hair health and are seeking products that go beyond basic cleansing. Popular features include solutions for damaged hair, strengthening and anti-hair loss benefits, hydration, and protection against dryness.

Oral care in Azerbaijan saw relatively modest growth in current value terms in 2024, compared with the wider beauty and personal care market. Toothpaste, the largest category, remains an essential product for daily hygiene and enjoys consistently high levels of consumption. Nonetheless, rising public awareness of oral health, coupled with improved access to dental services, is boosting demand for a wider range of oral care products.

Value sales of depilatories in Azerbaijan increased in current value terms in 2024. The category is experiencing steady growth, driven by advancements in technology, the convenience of at-home hair removal, the ongoing trend toward smooth skin, and rising consumer demand.

Value sales of colour cosmetics increased in current value terms in Azerbaijan in 2024. This reflects the stabilisation of supply chains and a slowdown in inflation. Eye make-up was the largest category, supported by cultural preferences, whereby the expressiveness of the eyes is highly valued. Mascara, eyeliner, and eyeshadow remain key products.

Sales of men’s grooming products in Azerbaijan increased in line with the overall beauty and personal care market in current value terms in 2024. Recent years have seen a rising male interest in personal care, with more men using specialised products for hair, beard, and skin care. This reflects a broader trend toward increased personal attention to hygiene and appearance.

Sales of sun care increased in current value terms in Azerbaijan in 2024, in line with broader growth in the beauty and personal care market. Azerbaijan’s hot climate remains a key driver of demand, particularly during the summer months, encouraging widespread use of sun protection products.

Value sales of bath and shower products in Azerbaijan registered positive growth in current value terms in 2024, alongside an increasing public awareness of the importance of personal hygiene. Bar soap was the largest category, supported by its affordability and longer-lasting nature, which make it particularly attractive to budget-conscious consumers. Bar soap was also the most dynamic category during the year. However, liquid soap category is growing in importance, with an expanding range that

Sales of beauty and personal care products in Azerbaijan experienced healthy growth in current value terms in 2024. With the rising popularity of self-care, and healthy living, more individuals chose to invest in beauty and personal care products that enhanced both physical appearance and overall wellbeing. Additionally, Azerbaijan’s economy showed signs of moderate recovery, supported by increased government investment in non-oil sectors such as tourism and agriculture. Inflation also began to

Sales of baby and child-specific products in Azerbaijan grew in current value terms in 2024. Despite continued price sensitivity amongst local consumers, parents are generally not inclined to cut corners when purchasing products for their children. In 2024, baby and child-specific hair care emerged as the largest category, driven partly by the fact that baby shampoos are formulated to be gentler and less irritating to the eyes than their adult counterparts.

Value sales of premium beauty and personal care products grew robustly in current value terms in Azerbaijan in 2024. Supply chains have largely recovered from earlier disruptions caused by global geopolitical shifts, allowing for a more stable flow of premium offerings into the market. Azerbaijan is a country in which social status and personal image hold significant cultural importance, and as such, demand for premium beauty products—particularly fragrances - remains high.