In 2024, total volume sales of tobacco experienced moderate growth despite increasing health concerns and government efforts to reduce smoking prevalence via information campaigns, taxation and regulation. A 2023 decree imposed higher taxes on cigarettes and other tobacco products and forms a key plank of tobacco control efforts, as does the ban on e-vapour products. Moreover, the Southeast Asia Tobacco Control Alliance (SEATCA) and various international health groups have expressed their solidarity with the Government of Laos in its commitment not to renew the 25-year (2001-2026) Investment Licence Agreement with Imperial Tobacco Group. Moreover, in other initiatives, herbal tea made from Ya Dok Khao (Murraya siamensis Craib) has been introduced in the country to help people quit smoking.
Cigars and cigarillos sales experienced the strongest growth in 2024, but from a very low base. Key drivers behind this performance also included rising disposable incomes, a growing number of middle- and high-income individuals, an increase in tourist arrivals, particularly during Laos’ ASEAN Chairmanship, and the continued expansion of the tourism and hospitality sector. Moreover, a cigar culture is gaining ground in the country, especially in Vientiane Capital, boosted by the opening of upscale cigar lounges, such as the 92 Cigar Club, which opened in 2023 in Parkson Mall.
In 2022, 3,837,878 million cigarette packs were manufactured, with a total value of LAK338,601.360 billion. This increased to 3,987,556 million packs in 2023, valued at LAK351,806.813 billion. Production of dried tobacco leaves reached 606,548 tonnes in 2022, worth LAK2,144.043 billion, and increased to 630,204 tonnes in 2023, valued at LAK2,227.661 billion. The value of other tobacco-related products stood at LAK1,156.985 billion in 2022, increasing slightly to LAK1,202.108 billion in 2023.
Tobacco products are widely available across Laos. Cigarettes are sold by almost all small local grocers, with these stores present across the country in both urban and rural areas. This is the leading distribution channel for tobacco, as these outlets cater to the low-income majority which account for the bulk of cigarettes sales. Street vendors also account for a strong share. Both small local grocers and street vendors attract many low-income smokers by continuing to offer cigarettes by the stick, despite this being illegal throughout the review period. The minimum legal pack size is set at 20 sticks. In some rural areas distribution is limited largely to popular local brand A Deng due to its lower pricing, while in urban areas it is more common to find imported global brands such as Marlboro, 555 and Winston alongside local brands.
Volume sales of tobacco are expected to rise at a moderate rate over the forecast period. The World Health Organization projects the smoking prevalence percentage in both sexes to further drop to 23.3% in 2025, with only 4% of Lao females smoking.
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Tobacco
Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.
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