TOBACCO INTERNATIONAL

TI JanFeb2016 • TPI Q1

Issue link: http://www.e-digitaleditions.com/i/668425

Contents of this Issue

Navigation

Page 27 of 67

28 TOBACCO INTERNATIONAL JANUARY/FEBRUARY 2016 T hough there is fresh conflict being reported at this writing between Iran, Saudi Arabia and other Sunni-Muslim countries, the growth market in Iran for cigarettes and quality tobacco remains attractive to many, and not least for British American Tobacco (BAT), Japan Tobacco International (JTI), KTG of Korea and, quite possi- bly, Philip Morris International (PMI) before long. In this emerging and re-emerging market for Western and other foreign cigarette companies, many manufacturers see the opportunity to take off in Iran in the near future. Billions and Billions But, as in any market, there are chal- lenges. In Iran, estimates place the size of the cigarette market at 12M consum- ers, even though Iran is losing 1,000 jobs a day and this is making her citi- zens nervous. Of course, they can take heart as they reach for a pack of cheap Iranian cigarettes which cost just $1 a pack. Iran allegedly loses up to 1,000 jobs a day as a result of government mismanagement and a political agenda that has brought economic sanctions upon it–pressure that it can ill afford. However, after the initiation of the nu- clear deal brokered by US Secretary of State John Kerry, Iran is apparently coming in from the political cold and significant sanctions have already been lifted–with billions of its dollars being made available once again to Iran. For the first time in recent memory, the country is poised for an economic re- covery and it remains to be seen if it will make a decided turnaround. Meanwhile, 50-60B cigarettes are reportedly being consumed annually in Iran by an estimated 12M smokers. These figures originate with Iranian au- thorities who seem to have made a gen- uine effort in terms of researching and IRAN'S TOBACCO MARKET Reviewing Iran's History in the Tobacco Market Iran's long history in tobacco is fascinating–and though challenging, the region holds valuable opportunities for tobacco interests. –By Bob Crew

Articles in this issue

view archives of TOBACCO INTERNATIONAL - TI JanFeb2016 • TPI Q1