Tobacco in Estonia
Euromonitor International's Tobacco in Estonia 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: 83 | Publication date: Oct 2009
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- 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
Steeply rising excise duties drive value sales
As most tobacco product sectors were subject to excise and ad valorem tax increases in 2008, value sales saw strong increases, in fact the largest rise of the review period. This, of course, had a substantial impact on consumers’ behaviour, as they found their smoking habit to be suddenly much more expensive at a time when the economic crisis was becoming evident in Estonia. Many sought ways to reduce their expenses, including trading down to cheaper brands and turning to illicit trade.
Volume sales are threatened
Whilst value growth was driven by excise tax increases, volume sales were adversely affected. The ban on smoking in bars, pubs, cafés and restaurants, which came into force in 2007, has also hit the tobacco market’s volume sales in a negative way. Moreover, the government continued injecting resources into wide-ranging anti-smoking campaigns in the media. Additionally, the number of smokers declined as the total population declined and also because the female smoking prevalence continued to fall.
Industry consolidation gives a substantial competitive advantage
Competition in the tobacco market is fierce but narrowing as multinational players seek ways to improve their positions and maximise profits. Japan Tobacco Inc and Gallaher International Ltd merged, as did British American Tobacco Estonia AS and Skandinavisk Tobakskompagni A/S, resulting in sharp rises in share due to m&a ventures. Producers are also paying increased attention to new product development and packaging as they try to cater to consumer trends and push their brand sales, with 2008 seeing a number of eye-catching releases.
Supermarkets/hypermarkets continue leading distribution share
Although Estonian cigarette buyers still prefer to buy their cigarettes from newsagent-tobacconist/kiosks and cigar and smoking tobacco smokers from food/drink/tobacco specialists, the share of supermarkets/hypermarkets and discounters is leading, as consumers enjoy the convenience of purchasing tobacco products whilst grocery shopping.
Volume sales down and value sales up
Estonians are unlikely to simply smoke less due to the economic downturn given the trouble and stress these periods bring. They are, however, likely to start purchasing mid-priced and economy brands more often and seek illicit trade products, at least in the near future. Moreover, although some tobacco product categories will decline in volume terms, the total tobacco market will record positive value growth as some significant excise increases are still pending; Estonia is yet to reach the minimum requirements set by the European Union. Rising tobacco prices are predicted to counterbalance the fall in volume sales.
Table of contents
TOBACCO IN ESTONIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Steeply rising excise duties drive value sales
Volume sales are threatened
Industry consolidation gives a substantial competitive advantage
Supermarkets/hypermarkets continue leading distribution share
Volume sales down and value sales up
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 2004-2008
The role and effect of cannabis/marijuana
LEGISLATION
Legislative overview/ FCTC ratification
EU Directives:
Tar levels
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
TAXATION AND DUTY LEVIES
Table 4 Taxation and Duty Levies
Table 5 Average Cigarette Pack Price Breakdown: Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 6 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 7 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 8 Sales of Tobacco by Sector: Volume 2003-2008
Table 9 Sales of Tobacco by Sector: Value 2003-2008
Table 10 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 11 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 12 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 13 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 15 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 16 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 17 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 20 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 21 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 22 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 23 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 24 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 25 Sales of Cigarettes by Length 2003-2008
Table 26 Sales of Cigarettes by Regular/Slim 2006-2008
Table 27 Sales of Cigarettes by Pack Size 2003-2008
Table 28 Sales of Cigarettes by Pack Type 2003-2008
Table 29 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 30 Cigarettes Company Shares 2004-2008
Table 31 Cigarettes Brand Shares 2005-2008
Table 32 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 33 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 35 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 36 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 37 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 39 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 40 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 41 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 42 Forecast Sales of Cigarettes by Length 2008-2013
Table 43 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 44 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 45 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS AND CIGARILLOS
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Summary 4 Cigars - New Product Launches 2008
Prospects
Sector Data
Table 46 Sales of Cigars by Subsector: Volume 2003-2008
Table 47 Sales of Cigars by Subsector: Value 2003-2008
Table 48 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 49 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 50 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 51 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 52 Company Shares of Cigarillos 2004-2008
Table 53 Brand Shares of Cigarillos 2005-2008
Table 54 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 55 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 56 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 57 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 58 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Summary 5 Smoking Tobacco - New Product Launches 2008
Prospects
Sector Data
Table 59 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 60 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 61 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 62 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 63 Company Shares of RYO Tobacco 2004-2008
Table 64 Brand Shares of RYO Tobacco 2005-2008
Table 65 Company Shares of Pipe Tobacco 2004-2008
Table 66 Brand Shares of Pipe Tobacco 2005-2008
Table 67 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 68 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 69 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 71 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013
SMOKELESS TOBACCO
TOBACCOLAND EESTI AS
Strategic Direction
Key Facts
Summary 6 Tobaccoland Eesti AS: Key Facts
Summary 7 Tobaccoland Eesti AS: Operational Indicators
Company Background
Production
Competitive Positioning
PHILIP MORRIS EESTI OÜ
Strategic Direction
Key Facts
Summary 8 Philip Morris Eesti OÜ: Key Facts
Summary 9 Philip Morris Eesti OÜ: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 10 Philip Morris Eesti OÜ: Competitive Position 2008
RASA TRADING COMPANY AS
Strategic Direction
KEY FACTS
Summary 11 Rasa Trading Company AS: Key Facts
Summary 12 Rasa Trading AS: Operational Indicators
Company Background
Production
Competitive Positioning