The growth in the number of legal NСP stores


The number of legal stores of nicotine-containing products in Russia in the first half of 2023 increased from 105 thousand to 187 thousand. The press service of the Center for the Development of Advanced Technologies (CRPT, operator of the Honest Sign digital labeling system) reports that during this period the number of stores submitting information on sales of nicotine-containing products, including electronic cigarettes and vaping liquids, increased by 78% compared to the same period in 2022.

According to CRPT analysts, the number of legal stores selling alternative tobacco products (ATP) - hookah mixes, cigars and cigarillos also increased by 32% during this period. Their number has increased from 82 thousand to 109 thousand. At the same time, the number of legal stores selling classic tobacco - cigarettes and cigarettes, increased by 25%, from 250 thousand to 313 thousand.

"Since the beginning of the labeling experiment and the introduction of mandatory labeling, the number of legal points of sale of vapes and electronic cigarettes has started to grow sharply and has almost doubled. This clearly indicates the exit of this business from the shadows and the transition to strict compliance with legal requirements. The "basement" points, which previously did not think that they would be paid attention to, understand that they will now have to work in the legal field. The whitewashing of other segments of the tobacco market also continues," said Revaz Yusupov, Deputy General Director of the CRPT.

The report states that the top regions for the growth of the number of legal outlets selling electronic cigarettes and vapes for the year included the Moscow Region (+5.5 thousand), Moscow (+4.5 thousand), Krasnodar Krai (+4.2 thousand), St. Petersburg (+2.7 thousand), as well as the Rostov region (+2.5 thousand). 

The Republic of Crimea (+1.8 thousand), Moscow (+1.6 thousand), Moscow Region (+1.6 thousand), Krasnodar Territory (+1.4 thousand) and Rostov Region (+1.2 thousand) became the leaders in the growth of the number of legal stores selling alternative tobacco products. The Krasnodar Territory (+3.8 thousand), Moscow Region (+3.1 thousand), Moscow (+2.6 thousand), Rostov Region (+2.3 thousand) and the Republic of Crimea (+2.2 thousand) also entered the top in the trade of classic tobacco products.

The Honest Mark labeling system has been introduced in Russia since 2019 to combat illegal product trafficking. One of the first groups of products included in the system was tobacco. 26 illegal tobacco factories were closed, another 18 entered the legal field. In addition to tobacco, the labeling applies to dairy products, mineral and drinking water, beer and low-alcohol beverages, medicines, shoes, light industry goods, fur coats, perfumes, tires and cameras.