Esse cigarettes power KT&G’s global push

KT&G CEO Bang Kyung-man (KT&G)

KT&G’s ultra-slim cigarette brand, Esse, continues to enjoy strong and steady demand in the Middle East and Central Asia — emerging as one of South Korea’s fastest-growing processed food exports in the first quarter of this year.

According to data released by the Ministry of Agriculture on Friday, KT&G’s cigarette exports rose 14.5 percent year-on-year during the January–March period, ranking second in export growth behind ramyeon, which saw a 27.3 percent increase.

KT&G has reported a significant rise in demand for Korean cigarettes across key markets such as the Middle East, Mongolia and Russia.

“In the Gulf Cooperation Council (GCC) region, including the UAE, the Korean Wave has played a major role in boosting interest in slim cigarettes made in Korea,” said an official from the Agriculture Ministry. “At the same time, exports to Commonwealth of Independent States (CIS) countries, such as Russia and Mongolia, have also grown, fueling further momentum.”

KT&G’s cigarette exports to GCC countries reached $49 million in the first quarter, marking an 83.6 percent year-on-year increase. Exports to CIS nations more than doubled to $29 million over the same period.

Among these markets, Mongolia stood out, where KT&G’s localization strategies have helped the company capture a market-leading share of over 50 percent, the company said.

Last year, KT&G posted 1.45 trillion won ($993 million) in overseas sales, up 28 percent from the previous year, driven largely by strong cigarette demand. Its cigarette exports alone reached 58.64 billion won.

Indonesia remains KT&G’s largest export destination, while Central Asian countries such as Uzbekistan are rapidly emerging as key growth markets. KT&G sold 270 million cigarettes in Uzbekistan last year, ahead of launching a local office there in January. The company has also secured the top market share in Tajikistan and third place in Kazakhstan.

To meet growing global demand, KT&G is building new manufacturing facilities in Kazakhstan and Indonesia, set to be completed by 2026. Once operational, these sites will serve as the backbone of a fully localized value chain — allowing KT&G to oversee production, marketing, sales and distribution directly within each target market.