Tobacco in Bosnia-Herzegovina
Euromonitor International's Tobacco in Bosnia-Herzegovina market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data.
Tables: 85 | Publication date: Aug 2009
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Executive summary
Illicit Trade Declines
Retail value sales of tobacco in Bosnia-Herzegovina virtually doubled between 2003-2008. Nevertheless, such performance figures should be viewed with some reserve. At the beginning of the review period illicit trade volume exceeded that of official tobacco products sales within the country; by 2008 this had declined to less than one third of its original size. A substantial proportion of tobacco products sales has therefore been successfully redirected through official channels, and it is for this reason rather than because of any organic growth in demand that there has been such an outstanding performance in Bosnia-Herzegovina during the review period. The principal instruments used by the government to combat illicit trade were the establishment of a coordinated border police force and the implementation of a unified tax policy.
Domestic Tobacco Manufacturing Faces a Crisis
Domestic tobacco companies experienced a critical year in 2008, with all three major manufacturers in Bosnia-Herzegovina losing volume share. The largest of these, Fabrika Duhana Sarajevo dd, had to deal with the loss of its long-serving CEO Sefik Lojo. Many industry observers would claim that the late Mr Lojo was the driving force behind the company’s sustained growth over the past decade. Fabrika Duvana Banja Luka dd, the second largest tobacco company in Bosnia-Herzegovina, is also facing turbulent times. Its products are outdated and its target customer base is consequently being eroded, such that the company’s volume share steadily declined over the review period. Finally, Fabrika Duhana Mostar dd was forced to cease production altogether during 2007 due to an accumulation of unpaid taxes. The company’s majority shareholder, the government of the Federation of Bosnia and Herzegovina, sold its stake to the Bulgarian company Pazardzhik-BT; however, the deal fell apart at the beginning of 2009 after the latter failed to fulfil its obligations.
Bosnia-Herzegovina Moves One Step Closer to EU Membership
Multinational companies are slowly but surely taking control of the tobacco market within Bosnia-Herzegovina. Now that the illicit trade is in check, demand for legitimate brands is soaring. Furthermore, domestic manufacturers are more concerned at present with simply surviving than they are with defending their volume shares. In 2009, Bosnia-Herzegovina entered a new phase in its EU integration process through the mutual lifting of import taxes on the majority of FMCG including tobacco products. This should increase the appeal of the country’s economy as an investment opportunity.
Convenience Shapes Distribution Patterns
During 2008, convenience remained the most influential factor in determining the structure of retail distribution for tobacco products within Bosnia-Herzegovina. Hence convenience stores, independent small grocers and newsagent-tobacconists/kiosks collectively dominated retail volume sales of cigarettes that year. For other, less conventional products such as cigars and smoking tobacco, the pattern of retail distribution is somewhat different, with more specialised outlets playing a larger role. Recently adopted laws have imposed new restrictions on the distribution of tobacco products, but these have yet to be fully enforced.
Tighter Legislation Expected in Future
Strict legislation regarding tobacco products is already in place within Bosnia-Herzegovina, however its enforcement is limited. As consumers, and especially non-smokers, become acquainted with the implications of this, public pressure to fully implement the provisions of these tobacco-related laws is likely to increase. As Bosnia-Herzegovina prepares for full EU membership, existing legislation is likely to become even stricter. This may well change the domestic tobacco market beyond all recognition. Volume consumption of cigarettes is predicted to begin declining as early as 2010, although value sales will continue to grow, driven by premiumisation and annual increases in taxation.
Table of contents
TOBACCO IN BOSNIA-HERZEGOVINA : MARKET INSIGHT
EXECUTIVE SUMMARY
Illicit Trade Declines
Domestic Tobacco Manufacturing Faces a Crisis
Bosnia-Herzegovina Moves One Step Closer to EU Membership
Convenience Shapes Distribution Patterns
Tighter Legislation Expected in Future
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
Table 3 Death by Cause 2004-2007
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative Overview/FCTC Ratification
Country-Specific Legislation
Minimum Legal Smoking Age
Tar Levels
Health Warnings
Duty Paid Packet Marks
Advertising and Sponsorship
Smoking in Public Places
Litigation
TAXATION AND DUTY LEVIES
Table 4 Taxation and Duty Levies: Cigarettes 2003-2008
Table 5 Average Cigarette Pack Price Breakdown : Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 6 Trade Statistics – Cigarettes
Table 7 Trade Statistics – Tobacco Leaf
MARKET INDICATORS
Table 8 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 9 Sales of Tobacco by Sector: Volume 2003-2008
Table 10 Sales of Tobacco by Sector: Value 2003-2008
Table 11 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 12 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 13 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 15 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 16 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
CIGARETTES
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Summary 2 Cigarettes - New Product Launches 2008
Prospects
Sector Background
Cigarettes: Price Bands
Summary 3 Cigarette Price Band Definitions
Cigarettes: Menthol/Standard
Cigarettes: Filter/Non-Filter
Cigarettes: Carbon/Standard Filter
Cigarettes: Filter Length
Cigarettes: Slims/Superslims vs Regular
Cigarettes: Pack Size
Cigarettes: Pack Type
Sector Data
Table 17 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 18 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 19 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 20 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 21 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 22 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 23 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 24 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 25 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 26 Sales of Cigarettes by Length 2003-2008
Table 27 Sales of Cigarettes by Regular/Slim 2006-2008
Table 28 Sales of Cigarettes by Pack Size 2003-2008
Table 29 Sales of Cigarettes by Pack Type 2003-2008
Table 30 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 31 Cigarettes Company Shares 2004-2008
Table 32 Cigarettes Brand Shares 2005-2008
Table 33 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 34 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 35 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 36 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 37 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 38 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 39 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 40 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 41 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 42 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 43 Forecast Sales of Cigarettes by Length 2008-2013
Table 44 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 45 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 46 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS AND CIGARILLOS
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
Sector Data
Table 47 Sales of Cigars by Subsector: Volume 2003-2008
Table 48 Sales of Cigars by Subsector: Value 2003-2008
Table 49 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 50 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 51 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 52 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 53 Company Shares of Cigarillos 2004-2008
Table 54 Brand Shares of Cigarillos 2005-2008
Table 55 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 56 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 57 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 58 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 59 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
Sector Data
Table 60 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 61 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 62 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 63 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 64 Company Shares of RYO Tobacco 2004-2008
Table 65 Brand Shares of RYO Tobacco 2005-2008
Table 66 Company Shares of Pipe Tobacco 2004-2008
Table 67 Brand Shares of Pipe Tobacco 2005-2008
Table 68 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 69 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 70 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 71 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 72 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013
SMOKELESS TOBACCO
FABRIKA DUVANA BANJA LUKA AD
Strategic Direction
Key Facts
Summary 4 Fabrika Duvana Banja Luka ad: Key Facts
Summary 5 Fabrika Duvana Banja Luka ad: Operational Indicators
Company Background
Production
Summary 6 Fabrika Duvana Banja Luka ad: Production Statistics (million sticks)
Competitive Positioning
Summary 7 Fabrika Duvana Banja Luka ad: Competitive Position 2008
FABRIKA DUHANA SARAJEVO DD
Strategic Direction
Key Facts
Summary 8 Fabrika Duhana Sarajevo dd: Key Facts
Summary 9 Fabrika Duhana Sarajevo dd: Operational Indicators
Company Background
Production
Summary 10 Fabrika Duvana Sarajevo dd: Production Statistics (million sticks)
Competitive Positioning
Summary 11 Fabrika Duhana Sarajevo dd: Competitive Position 2008
FABRIKA DUHANA MOSTAR DD
Strategic Direction
Key Facts
Summary 12 Fabrika Duhana Mostar dd: Key Facts
Company Background
Production
Summary 13 Fabrika Duhana Mostar dd: Production Statistics (million sticks)
Competitive Positioning