Tobacco in Bulgaria
Euromonitor International's Tobacco in Bulgaria 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: 92 | Publication date: Jan 2010
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Executive summary
Tobacco market characterised by differing growth trends
Bulgaria’s tobacco market posted healthy current value growth in 2008. The main reason for the increase was taxation. Bulgaria witnessed yet another excise tax rise, which was passed by the National Assembly in December 2008. The previous amendment was passed in December 2007 and led to a gradual increase in cigarette retail prices over 2008. It should be noted that excise tax on cigars and cigarillos and smoking tobacco was not increased. In volume terms, the cigarettes sector posted a slight decline as a result of legislative ambiguities (VAT registration for all retailers, uncertain transitory dates for the old excise stamps) and thriving illicit trade. The cigars and cigarillos and smoking tobacco sectors, however, continued to grow.
Excise tax increase evokes competitive reaction from multinational players
The expected excise tax increase was the most talked about event in 2008. As elsewhere in the world, excise tax is one of the most powerful instruments in manipulating tobacco sales and influencing company shares. There were several proposals with regard to the new excise tax structure (in Bulgaria excise tax consists of specific and ad valorem parts), which were put forward by policy makers and private companies. The excise structure which was finally agreed on is supposed to favour brands in the economy segment as opposed to mid-priced and premium brands. In an attempt to gain further share at the expense of state-owned leader Bulgartabac, all multinational companies adopted more competitive prices across their portfolios.
Bulgartabac continues to lead but with declining share
In 2008 Bulgartabac continued to lead the market but recorded a share decline of over 12 percentage points on 2007. The strong and often aggressive business strategies of British American Tobacco (BAT) and Philip Morris (PM) have managed to eat away at Bulgartabac’s share. Market structure was further affected by smaller competitors such as Gallaher Bulgaria EOOD, Imperial Tobacco Group Plc and Karelia Tobacco Co Inc. Having been determined to buy expensive imported cigarettes for many years, in 2008 consumers responded very positively to the abundance of international brands which were sold at prices very similar to those of locally manufactured bands. To a large extent the marketing strategies of the international companies helped them to rapidly increase share.
Tobacco products predominantly sold through store-based retailing channels
The store-based retailing channel continued to be the most important for the sale of all tobacco products in 2008. The fact that Bulgaria has a very well-developed retail network selling cigarettes through all possible types of outlets played an important role in the dominance of this channel. Non-store retailing is an important channel for cigars and cigarillos and smoking tobacco, but in volume terms the store-based channel leads.
Total ban on smoking in public places and increased health awareness to negatively affect tobacco over the forecast period
The forecast period will see the volume growth of all tobacco sectors either decline or face a slowdown. The most important factor to affect the habit will be the expected total ban on smoking in public places, which is envisaged for June 2010. This will make smoking inconvenient and hopefully encourage infrequent smokers to quit. Indeed, the excise increases planned for 2009 and 2010 are not expected to have as significant an effect as the smoking ban. Cigarettes, the largest sector, is expected to decline the most, while both cigars and cigarillos and smoking tobacco are anticipated to see a considerable slowdown on their review period volume growth.
Table of contents
TOBACCO IN BULGARIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Tobacco market characterised by differing growth trends
Excise tax increase evokes competitive reaction from multinational players
Bulgartabac continues to lead but with declining share
Tobacco products predominantly sold through store-based retailing channels
Total ban on smoking in public places and increased health awareness to negatively affect tobacco over the forecast period
OPERATING ENVIRONMENT
Smoking Prevalence
Summary 1 NRT Products in Bulgaria 2008
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 2004-2008
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/ FCTC ratification
Legislation: EU Directives:
Minimum legal smoking age
Tar levels
Summary 2 Law on Maximum Tar Yields per Cigarette 2004-2010
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
TAXATION AND DUTY LEVIES
Outlook
Table 4 Taxation and Duty Levies
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 3 Research Sources
LOCAL COMPANY PROFILES - BULGARIA
BRITISH AMERICAN TOBACCO BULGARIA EOOD - TOBACCO - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 British American Tobacco Bulgaria EOOD: Key Facts
Summary 5 British American Tobacco Bulgaria EOOD: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 6 British American Tobacco Bulgaria EOOD: Competitive Position 2008
BULGARTABAC HOLDING GROUP - TOBACCO - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Bulgartabac Holding Group: Key Facts
Summary 8 Bulgartabac Holding Group: Operational Indicators
COMPANY BACKGROUND
CHRONOLOGY OF ACTUAL EVENTS
PRODUCTION
Summary 9 Bulgartabac Holding Group: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 10 Bulgartabac Holding Group: Competitive Position 2008
CIGARETTE FACTORY PLOVDIV AD - TOBACCO - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Cigarette Factory Plovdiv AD: Key Facts
Summary 12 Cigarette Factory Plovdiv AD: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
IMPERIAL TOBACCO BULGARIA EOOD - TOBACCO - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Imperial Tobacco Bulgaria EOOD: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 14 Imperial Tobacco Bulgaria EOOD: Competitive Position 2007
PHILIP MORRIS BULGARIA EOOD - TOBACCO - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Philip Morris Bulgaria EOOD: Key Facts
Summary 16 Philip Morris Bulgaria EOOD: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 17 Philip Morris Bulgaria EOOD: Competitive Position 2008
CIGARETTES IN BULGARIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 18 Cigarettes - New Product Launches 2008
PROSPECTS
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 19 Cigarette Price Band Definitions
Cigarettes: Menthol/standard
Cigarettes: Filter/non-filter
Cigarettes: Carbon/standard filter
Cigarettes: Filter length
Cigarettes: Slims/superslims vs regular
Table 17 Slims/superslims Penetration
Cigarettes: Pack size
Cigarettes: Pack type
SECTOR DATA
Table 18 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 19 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 20 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 21 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 22 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 23 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 24 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 25 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 26 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 27 Sales of Cigarettes by Length 2003-2008
Table 28 Sales of Cigarettes by Regular/Slim 2006-2008
Table 29 Sales of Cigarettes by Pack Size 2003-2008
Table 30 Sales of Cigarettes by Pack Type 2003-2008
Table 31 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 32 Cigarettes Company Shares 2004-2008
Table 33 Cigarettes Brand Shares 2005-2008
Table 34 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 35 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 36 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 37 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 38 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 39 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 40 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 41 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 42 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 43 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 44 Forecast Sales of Cigarettes by Length 2008-2013
Table 45 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 46 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 47 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS IN BULGARIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 48 Sales of Cigars by Subsector: Volume 2003-2008
Table 49 Sales of Cigars by Subsector: Value 2003-2008
Table 50 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 51 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 52 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 53 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 54 Company Shares of Cigarillos 2004-2008
Table 55 Brand Shares of Cigarillos 2005-2008
Table 56 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 57 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 58 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 59 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 60 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO IN BULGARIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 61 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 62 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 63 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 64 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 65 Company Shares of RYO Tobacco 2004-2008
Table 66 Brand Shares of RYO Tobacco 2005-2008
Table 67 Company Shares of Pipe Tobacco 2004-2008
Table 68 Brand Shares of Pipe Tobacco 2005-2008
Table 69 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 70 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 71 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 72 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 73 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013