Ranked 1st in Mongol Market Share Last Year with 45.1%
Export Volume Doubled in 4 Years to 2.26 Billion Units
KT&G is thriving, having nearly doubled its market share by achieving record-high sales in the Mongolian market last year.
According to industry sources on the 31st, KT&G's market share in the Mongolian tobacco market reached 45.1% last year, ranking first.
Since overtaking the Japanese tobacco company JTI to claim the top spot in 2020, KT&G has maintained a steep growth trajectory. KT&G's market share in Mongolia rose sharply from 27.8% in 2019 to 35.5% in 2020, surpassing JTI's 33.0%. Thereafter, KT&G further expanded its market dominance by increasing its share to 42.2% in 2021 and 45.1% in 2022, widening the gap with the second place. Exports have also grown rapidly. Last year, KT&G exported 2.26 billion cigarettes to Mongolia, a 36% increase compared to the previous year. This figure represents roughly a tenfold growth compared to the 240 million cigarettes exported in 2010, and more than doubled compared to the 1 billion cigarettes exported in 2018 over four years.
The ultra-slim cigarette product ‘ESSE’ has led the Korean wave of tobacco in Mongolia by gaining popularity as a premium product. A KT&G official explained, “ESSE is a key brand that pioneered the ultra-slim category in the Mongolian market, which mostly consists of high-tar and regular products, driving increased sales volume. Despite being priced higher than mainstream products in the local market, ESSE has established itself as the leading brand with about 40% market share and is recognized as a representative premium product.” KT&G aims to become the leading Korean wave company in the Mongolian market with overwhelming market dominance beyond just holding the number one position. The company plans to further strengthen its sales and marketing capabilities and actively nurture new brands to raise its market share to 70% by 2025.
KT&G is accelerating efforts to maximize business performance in Mongolia, with President Baek Bok-in recently engaging in on-site management. According to industry sources, President Baek visited the KT&G Mongolia office in mid-month to encourage local employees and review sales conditions as part of strengthening on-site management, while exploring new growth opportunities. This visit is expected to accelerate KT&G’s business expansion in Mongolia.
Having increased its market share in Mongolia through differentiated product quality and brand recognition, KT&G now plans to enhance overall business efficiency to translate into results. KT&G intends to firmly establish its advanced Korean-style sales model locally, meticulously managing distribution and collaborating systematically with partner organizations such as local sales offices.
Despite restrictions on local sales activities due to COVID-19, KT&G previously dispatched sales experts to Mongolia to build a sales system on par with that in Korea. Moving forward, the company will operate programs to strengthen the capabilities of local sales staff and domestic benchmarking programs, and focus on refining sales activities based on IT systems to accelerate market penetration.
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