In 2025, the cost of cigarettes and alcoholic beverages in Ukraine rose significantly, a result of changes in tax legislation. The largest price increase was observed specifically for tobacco products, particularly filter cigarettes produced in Ukraine, which saw a 33.1% increase, reaching 106.4 UAH per pack.
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Increase in Alcohol Prices
According to the State Statistics Service, in June 2025, prices for alcohol also rose compared to the same period last year. A half-liter bottle of vodka increased by 3.6% and now costs 119.6 UAH. Ukrainian table wine in a 0.7-liter bottle became 8% more expensive, reaching 120.1 UAH. A 0.5-liter bottle of beer rose in price by 12.5% and now costs 36 UAH. Despite this, the minimum prices for alcohol have remained unchanged since 2018, which partially restrains further increases in the cost of these beverages.
Reasons for the Price Increase and Tobacco Consumption
The National Bank of Ukraine explains that current legislation provides for a significant increase in excise taxes on tobacco products specifically in 2025. Over the next three years, from 2026 to 2028, the growth of excise rates will occur gradually, so the main price jump occurred this year.
Tobacco products account for 3.9% of household expenditure, while alcohol accounts for 4%. Data from a survey conducted by the Kyiv International Institute of Sociology in February-March 2025 indicates that 31% of Ukrainians consume tobacco or nicotine products. Of this group, 27% do so daily. Among men, the consumption rate is 41%, while among women, it is only 16%.
Tobacco products account for 3.9% of Ukrainians’ expenditure, while alcohol accounts for 4%.
It is expected that in the coming years, the rate of price increases for cigarettes and alcohol will somewhat slow down.