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: Sep 2008
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
Product coverage
Cigarettes; Cigarettes including RYO; Cigars; Smoking tobacco
Executive summary
Local monopoly Bulgartabac finally declines – new players take lead
Bulgaria’s entry to the EU saw the local monopoly, Bulgartabac, strongly decline. Open gates to foreign giant cigarette brand raids left Bulgartabac in a hopeless defensive position. British American Tobacco Bulgaria EOOD (BAT) and Philip Morris Services Bulgaria EOOD (PM) fiercely grabbed shares with cheap well-established foreign brands. Market dynamics picked up ultimate speed with Gallaher Bulgaria EOOD (JTI), Karelia Tobacco Corp Inc and Imperial Tobacco Group PLC targeting what was left. Local number one brand, Victory, remained with highest but reduced share. However, it is not expected to easily retain that position over the forecast years. Bulgartabac, therefore, finally experienced real opposition, with the government unable to support it as previously. Also, Bulgaria’s borders are left wide open to penetration by worldwide established giants.
2007 local market – cigarettes price war
Market dynamics in 2007 were marked by a cigarettes price war. The removal of duty levies and excise tax structure in favour of economy and mid-priced cigarettes allowed importers to swarm Bulgaria with cheap brands. EU accession led to rapid development of all Bulgarian economic categories – tobacco products being most prominent. Bulgartabac’s strategic move in return led to lowering the prices of most brands. Price deregulation allowed inflation by economy cigarette brands – an outstanding development in the background of the country’s record high inflation of 12.5%. As the consumer price index was almost double that of 2006, and as average monthly salaries increased by approximately 20%, Bulgarian smokers welcomed ongoing cigarette price reductions. This dynamic development tied Bulgarian government hands in exercising any control via administrative measures – a price battle that continued for the entire year and so let BAT and PM become Bulgartabac’s main rivals.
Slim/superslim – a rapidly developing category
Slim/superslim emerged as a niche with very rapid growth in 2007. This was due to the increased female smoking population – a consumer group that is expected to develop much further. The new fashion of holding long elegant cigarettes and the positive image of slims being a ‘healthier’ alternative resulted in the import and launching of a multitude of slim/superslim. Growth in 2007 saw local Eva Slims and Greek Karelia Slims fight for leading position. Innovation appeared to have picked up speed on diverse cigarettes brands.
Diversification to RYO and cigars
Cigars and RYO marked a record high performance in 2007. RYO emerged as a category significant in sales. The quantum leaps in cigarette diversification and the ups and downs in prices led to many regular cigarette smokers preferring RYO. RYO used better quality tobacco than factory manufactured cigarettes and was also a substitute for banned unfiltered. Increasing consumer interest in tobacco products other than typical cigarettes resulted in cigars achieving a small but significant share of overall tobacco products in 2007 in comparison to the review period.
Privatisation: there is light in the tunnel – 2008 may see to its end
In 2007, privatisation of local monopoly, Bulgartabac Holding Group, was slowed by mixed state and syndicate interests as well as the Holding’s negative image with buyers. The Holding was mainly concerned with surviving locally, investing in new production technology and selling four of its raw tobacco factories. However, with time passing, large players lost interest in purchasing and the government was forced to consider pushing all privatisation deals to end in 2008 or as soon as possible – as factory prices started to decline. There is, however, hope for privatisation to speed up and all possible deals executed soon.
Table of contents
TOBACCO IN BULGARIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Local monopoly Bulgartabac finally declines – new players take lead
2007 local market – cigarettes price war
Slim/superslim – a rapidly developing category
Diversification to RYO and cigars
Privatisation: there is light in the tunnel – 2008 may see to its end
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2002-2007
Table 2 Number of Smokers by Gender 2002-2007
Summary 1 NRT Products in Bulgaria 2007
Death by Cause
Legislation
Summary 2 Law on Maximum Tar Yields per Cigarette 2004-2010
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies
Table 4 Average Cigarette Pack Price Breakdown: Brand Examples
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes
Table 6 Trade Statistics – Raw Tobacco
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 7 Deaths by Diseases of the Respiratory System 2002-2007
Table 8 Deaths from Heart Disease 2002-2007
Table 9 Deaths from Lung Cancer 2002-2007
Table 10 Illicit Trade Estimate 2002-2007
MARKET DATA
Table 11 Sales of Tobacco by Sector: Volume 2002-2007
Table 12 Sales of Tobacco by Sector: Value 2002-2007
Table 13 Sales of Tobacco by Sector: % Volume Growth 2002-2007
Table 14 Sales of Tobacco by Sector: % Value Growth 2002-2007
Table 15 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007
Table 16 Forecast Sales of Tobacco by Sector: Volume 2007-2012
Table 17 Forecast Sales of Tobacco by Sector: Value 2007-2012
Table 18 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012
Table 19 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012
DEFINITIONS
Sources
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 BY FACTORY
COMPETITIVE POSITIONING
Summary 6 British American Tobacco Bulgaria EOOD: Competitive Position 2007
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
PRODUCTION BY FACTORY
Summary 9 Bulgartabac Holding Group: Production Statistics by Factory in billion sticks
COMPETITIVE POSITIONING
Summary 10 Bulgartabac Holding Group: Competitive Position 2007
GALLAHER BULGARIA EOOD - TOBACCO - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Gallaher Bulgaria EOOD: Key Facts
Summary 12 Gallaher Bulgaria EOOD: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 13 Gallaher Bulgaria EOOD: Competitive Position 2007
KARELIA TOBACCO CO INC - TOBACCO - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Karelia Tobacco Co Inc: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 15 Karelia Tobacco Co Inc: Competitive Position 2007
PHILIP MORRIS SERVICES BULGARIA EOOD - TOBACCO - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Philip Morris Services Bulgaria EOOD: Key Facts
Summary 17 Philip Morris Services Bulgaria EOOD: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 18 Philip Morris Services Bulgaria EOOD: Competitive Position 2007
CIGARETTES IN BULGARIA
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 19 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Table 20 Slim/superslim Penetration
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
New Product Developments
Summary 20 Cigarettes: New Product Launches
PROSPECTS
SECTOR DATA
Table 21 Sales of Cigarettes by Tar Level: Volume 2002-2007
Table 22 Sales of Cigarettes by Tar Level: Value 2002-2007
Table 23 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007
Table 24 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007
Table 25 Sales of Cigarettes by Price Band: % Volume Breakdown 2002-2007
Table 26 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2002-2007
Table 27 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2002-2007
Table 28 Sales of Cigarettes by Filter Vs Non-filter 2002-2007
Table 29 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2002-2007
Table 30 Sales of Cigarettes by Length 2002-2007
Table 31 Sales of Cigarettes by Regular/Slim 2006-2007
Table 32 Sales of Cigarettes by Pack Size 2002-2007
Table 33 Sales of Cigarettes by Pack Type 2002-2007
Table 34 Cigarettes Company Shares 2003-2007
Table 35 Cigarettes Brand Shares 2004-2007
Table 36 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012
Table 37 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012
Table 38 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
Table 39 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
Table 40 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012
Table 41 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012
Table 42 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012
Table 43 Forecast Sales of Cigarettes by Filter Vs Non-filter 2007-2012
Table 44 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2007-2012
Table 45 Forecast Sales of Cigarettes by Length 2007-2012
Table 46 Forecast Sales of Cigarettes by Regular/Slim 2007-2012
Table 47 Forecast Sales of Cigarettes by Pack Size 2007-2012
Table 48 Forecast Sales of Cigarettes by Pack Type 2007-2012
CIGARS IN BULGARIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
Summary 21 Cigars: New Product Launches
PROSPECTS
SECTOR DATA
Table 49 Sales of Cigars by Subsector: Volume 2002-2007
Table 50 Sales of Cigars by Subsector: Value 2002-2007
Table 51 Sales of Cigars by Subsector: % Volume Growth 2002-2007
Table 52 Sales of Cigars by Subsector: % Value Growth 2002-2007
Table 53 Company Shares of Cigars Exluding Cigarillos 2003-2007
Table 54 Brand Shares of Cigars Exluding Cigarillos 2004-2007
Table 55 Company Shares of Cigarillos 2003-2007
Table 56 Brand Shares of Cigarillos 2004-2007
Table 57 Forecast Sales of Cigars by Subsector: Volume 2007-2012
Table 58 Forecast Sales of Cigars by Subsector: Value 2007-2012
Table 59 Forecast Sales of Cigars by Subsector: % Volume Growth 2007-2012
Table 60 Forecast Sales of Cigars by Subsector: % Value Growth 2007-2012
SMOKING TOBACCO IN BULGARIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
Summary 22 Smoking tobacco: New Product Launches
PROSPECTS
SECTOR DATA
Table 61 Sales of Smoking Tobacco by Subsector: Volume 2002-2007
Table 62 Sales of Smoking Tobacco by Subsector: Value 2002-2007
Table 63 Sales of Smoking Tobacco by Subsector: % Volume Growth 2002-2007
Table 64 Sales of Smoking Tobacco by Subsector: % Value Growth 2002-2007
Table 65 Company Shares of RYO Tobacco 2003-2007
Table 66 Brand Shares of RYO Tobacco 2004-2007
Table 67 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012
Table 68 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012
Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012
Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012