Despite a year-on-year increase in sales, Andorra has not returned to pre-Covid levels. Explanations.
While tobacco sales increased by +25% in 2022 compared to 2021, longer-term data show a clear decline. Thus, the year 2021 having been marked by travel restrictions, in particular for the French, sales in 2022 could only be higher.
But if we compare last year’s figures with those before the pandemic, sales of the various cigars and cigarettes fell by -11%.
And for Raül Calvo, the head of the Andorran Union of Tobacco Merchants (UCAT), this assessment is all the less good since the year 2019 had been marked by an initial negative period for tobacco merchants following the entry into force of the minimum price law.
And according to the Periodic of Andorraif the balance sheets are down, it is because the number of smokers has clearly decreased despite a price difference between the Principality, France and Spain, which shows values around -37% on average.
This data is particularly true in the Pas de la Casa sales outlets, where French consumers mainly get their supplies and which make it possible to identify a trend in the Andorran market.
Added to this is an explosion in sales of alternative products such as electronic cigarettes. A trend of “very high and very fast” growth.
Andorran tobacco dealers are therefore urged to adapt to these new markets as “profit margins on tobacco alone become increasingly limited”.