Tobacco imports, at historic peak - Paradox: Rising prices, stable consumption
According to INSTAT, in 2024, tobacco imports reached around 11.8 billion lek, while in 2025 this value increased to over 13 billion lek. Compared to 2005, when imports were only 4.8 billion lek, the value of imports has almost tripled within two decades. The growth has become particularly strong after 2020, indicating a clear acceleration in the cost of imported tobacco products.
Unlike the value, imports expressed in weight do not show a remarkable increase. In 2024, about 3,470 tons of tobacco were imported, while in 2025 the net weight reached 3,740 tons. These levels are comparable to previous years and do not constitute a historical record. In some earlier years, such as 2008 or 2010, imports in kilograms have been even higher. This clearly shows that the increase in imports in value does not come from an increase in quantity.
The indicator that explains this difference is the average price per kilogram. In 2024, the import price reached about 3,404 lek per kilogram, while in 2025 it increased further to about 3,497 lek per kilogram, the highest level ever recorded. For comparison, in 2005 the price was only about 1,200 lek per kilogram, while in 2015 it was about 2,356 lek. Within 20 years, the average import price per kilogram has almost tripled.
From an economic perspective, this increase is explained by several combined factors. First, the gradual increase in excise duty and fiscal burden on tobacco products has directly impacted the increase in import prices. Second, the structure of imports has shifted towards higher value products, including premium brands and processed tobacco substitutes, which have higher production and marketing costs. Third, imported inflation and the increase in international transport costs after 2020 have exerted additional pressure on prices.
Another important factor is the low elasticity of demand for tobacco. Although consumers may reduce the amount consumed, they tend to accept higher prices, which keeps the total market value growing. This explains why imports in kilograms remain relatively stable, while their value increases significantly.
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