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: 74 | Publication date: Sep 2007
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
Bulgarian cigarette prices increase by Lev1.00 in January 2006
Bulgarian cigarette prices increased by Lev1.00 in January 2006. Excise duties and price hikes contributed to the country’s inflation of 8.8% in March as opposed to the previous month’s figure of 6.5%, with cigarettes being one of the major consumer items. The Bulgarian government agreed to a sudden increase in cigarette excise duties of 60% in order to avoid inflationary pressure in 2007 and 2008. Economy high-tar products faced a rapid decline with mid-tar premium and mid-priced products swarming the marketplace.
Ongoing privatisation – no one to buy?
Bulgaria’s EU membership from 1 January 2007 placed further pressure on the government to privatise the country’s tobacco monopoly. The 86% market share of Bulgartabac Holding Group was shaken by legislation and the penetration of foreign tobacco giants in mid-2006. The privatisation strategy for Bulgartabac obstructed any foreign participation in getting the company sold, given the rules and conditions which are proving difficult for prospective buyers. A seemingly never-ending process of holding, restructuring and sale will continue in 2007.
Bulgartabac strives to deal with the entry of foreign giants
2006 saw the sudden penetration of imported cigarettes from British American Tobacco (BAT), Philip Morris and Gallaher, which led to considerable movement and niche development in the cigarettes sector. The cigars and cigarillos and RYO sectors also saw significant development that same year. Despite government attempts to protect the country’s monopolistic position, foreign brands quickly invaded the market. Bulgartabac Holding Group (BTH) found itself fighting the continuous entry of foreign rivals in the market. It spent most of its energy investing in and launching new brands and innovations in an effort to maintain its dominance. Increased illicit trade of imported brands made it even more difficult for the monopoly to oppose its foreign competitors.
Bulgaria has one of the largest smoking populations in Europe
Despite the leap in cigarette prices in 2006, the smoking population in Bulgaria remains among the highest in Europe, with some 50% of minors smoking. Imported cigarettes and new Bulgartabac brands presented smokers with options such as whether to choose brands which were cheaper or those which were considered ‘healthier’ to smoke, rather than stopping altogether. Increased government measures and plans to raise public health awareness resulted in smokers opting for new lower-tar brands. However, the number and starting age of youth smokers remains a problem.
Table of contents
TOBACCO IN BULGARIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Bulgarian cigarette prices increase by Lev1.00 in January 2006
Ongoing privatisation – no one to buy?
Bulgartabac strives to deal with the entry of foreign giants
Bulgaria has one of the largest smoking populations in Europe
OPERATING ENVIRONMENT
Smoking Population
Summary 1 NRT Products in Bulgaria 2006
Table 1 Smoking Prevalence in Population 2001-2006
Table 2 Number of Smokers by Gender 2001-2006
Death by Cause
Legislation
Summary 2 Law on Maximum Tar Yields per Cigarette 2004-2010
Litigation
Taxation and Duty Levies
Summary 3 Taxation and Duty Levies
Summary 4 Average Cigarette Pack Price Breakdown: Brand Examples 2006/2007
Production/Imports/Exports
Table 3 Trade Statistics – Cigarettes
Table 4 Trade Statistics – Raw Tobacco
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 5 Deaths from Heart Disease 2001-2006
Table 6 Deaths from Lung Cancer 2001-2006
Table 7 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 8 Sales of Tobacco by Sector: Volume 2001-2006
Table 9 Sales of Tobacco by Sector: Value 2001-2006
Table 10 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 11 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 12 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 13 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 14 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 15 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 16 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Sources
Summary 5 Research Sources
LOCAL COMPANY PROFILES - BULGARIA
BULGARTABAC HOLDING GROUP - TOBACCO - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Bulgartabac Holding Group: Key Facts
Summary 7 Bulgartabac Holding Group: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 8 Bulgartabac Holding Group: Production Statistics by Factory
COMPETITIVE POSITIONING
Summary 9 Bulgartabac Holding Group: Competitive Position 2006
GALLAHER BULGARIA EOOD - TOBACCO - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Gallaher Bulgaria EOOD: Key Facts
Summary 11 Gallaher Bulgaria EOOD: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 12 Gallaher Bulgaria EOOD: Competitive Position 2006
IMPERIAL TOBACCO BULGARIA EOOD - TOBACCO - BULGARIA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Imperial Tobacco Bulgaria EOOD: Key Facts
Summary 14 Imperial Tobacco Bulgaria EOOD: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 15 Imperial Tobacco Bulgaria EOOD: Competitive Position 2006
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 2006
CIGARETTES IN BULGARIA
HEADLINES
TRENDS
Illicit trade
Price Bands
Filter Splits
Table 17 Slims/superslims Penetration
Pack Splits
COMPETITIVE LANDSCAPE
Summary 19 Cigarettes: New Product Launches / Withdrawals 2005-2006
PROSPECTS
SECTOR DATA
Table 18 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 19 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 20 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 21 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 22 Sales of Cigarettes by Price Band: %Volume Breakdown 2001-2006
Table 23 Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2001-2006
Table 24 Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2001-2006
Table 25 Sales of Cigarettes by Filter Vs Non-filter 2001-2006
Table 26 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2001-2006
Table 27 Sales of Cigarettes by Length 2001-2006
Table 28 Sales of Cigarettes by Pack Size 2001-2006
Table 29 Sales of Cigarettes by Pack Type 2001-2006
Table 30 Cigarettes Company Shares 2002-2006
Table 31 Cigarettes Brand Shares 2003-2006
Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 36 Forecast Sales of Cigarettes by Price Band: %Volume Breakdown 2006-2011
Table 37 Forecast Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2006-2011
Table 38 Forecast Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2006-2011
Table 39 Forecast Sales of Cigarettes by Filter Vs Non-filter 2006-2011
Table 40 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2006-2011
Table 41 Forecast Sales of Cigarettes by Length 2006-2011
Table 42 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 43 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN BULGARIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 44 Sales of Cigars by Subsector: Volume 2001-2006
Table 45 Sales of Cigars by Subsector: Value 2001-2006
Table 46 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 47 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 48 Company Shares of Cigars Exluding Cigarillos 2002-2006
Table 49 Brand Shares of Cigars Exluding Cigarillos 2003-2006
Table 50 Company Shares of Cigarillos 2002-2006
Table 51 Brand Shares of Cigarillos 2003-2006
Table 52 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 53 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 54 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 55 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO IN BULGARIA
HEADLINES/PROSPECTS