According to N.News on January 5th, South Korean tobacco company KT&G is accelerating its expansion in overseas markets through its cigarette brands "ESSE" and "RAISON." In the third quarter of 2024, KT&G's sales in the overseas tobacco market reached 419.7 billion Korean won, an increase of 30.5% compared to the previous year. It is expected that the overseas business profits of cigarettes and e-cigarettes will increase by approximately 50% in 2024.
KT&G pointed out that its key growth came from increased sales of the ultra-slim cigarette brands "ESSE," "RAISON," and "Bohem," with particular strong performance in the Indonesian market. In 2023, sales of "ESSE" in Indonesia reached 9.6 billion units. The flagship product "ESSE Berry Pop," which was launched in 2017, has been very popular, with sales reaching 205 million units within just one year of its launch.
In addition, in the Mongolian market, KT&G has surpassed Japan Tobacco International (JTI) to take the lead in market share. In 2023, their market share exceeded 50%, making it the first country where the company's market share overseas has exceeded 50%. The export volume has also increased from 300 million in 2011 to 2.35 billion in 2023, an increase of approximately 7.8 times.
KT&G is also expanding its presence in the European market. In 2024, the company launched two new "ESSE" products in Romania and entered the markets of Spain and Portugal. In Kazakhstan, KT&G ranks third in market share, while it holds the top position in Tajikistan.
Benefiting from the strong performance of its overseas business, KT&G plans to establish localized production facilities. The company is constructing a new factory in Surabaya, East Java Province, Indonesia, covering an area of 190,000 square meters. It is scheduled to be completed in 2026 with an annual production capacity of up to 21 billion cigarettes. Additionally, a plant of approximately 200,000 square meters in Almaty, Kazakhstan is also set to begin production in 2026.
Notice
1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.
2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.
3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.
Copyright
This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com
AI Assistance Disclaimer
This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.
This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.
