Philip Morris International Inc. (PMI) in 2021 reduced the shipment of its products in Ukraine by 3.3% compared to 2020 due to an increase in excise tax on these products, followed by its rise in price and an increase in the volume of illegal trade in cigarettes.
According to the PMI report, in the fourth quarter of 2021, shipments of its products to Ukraine decreased by 7.4% compared to October-December 2020, mainly due to the overall contraction of the Ukrainian tobacco market, which was partially offset by the growth of tobacco products intended for use in heat-not-burn devices.
The overall contraction of the tobacco market in Ukraine in 2021 was 9.8% compared to 2020, mainly due to an increase in product prices caused by an increase in the excise tax and in illegal trade in cigarettes.
According to the report, in general, in Eastern Europe (including Russia) in 2021, the volume of shipments of tobacco products did not change compared to 2020 and amounted to 114.35 billion units, and in the fourth quarter of last year it decreased by 4.3% – to 27.99 billion units
As reported, Philip Morris International, which includes PrJSC Philip Morris Ukraine, is one of the world’s largest manufacturers of tobacco products. It produces cigarettes in more than 50 factories and sells them in 180 countries.
The company has been operating in Ukraine for more than 20 years, owns a factory in Kharkiv region. More than 1,300 people work at the company’s enterprises.