Tobacco in Hungary
Euromonitor International's Tobacco in Hungary 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: 78 | Publication date: Jan 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
Product coverage
Cigarettes; Cigarettes including RYO; Cigars; Smoking tobacco
Executive summary
Surprising increase in sales in 2007
Volume sales of cigarettes continued to increase in 2007, despite declines in the earlier years of the review period and despite the fact that unit prices continued to increase. Additionally, smoking prevalence has been declining largely due to the fact that more and more men have decided to give up smoking. The reason for the increase in volume sales was a shift from illicit trade to the legal market, largely due to the fact that border control was considerably improved, which resulted in a decline in the amount of smuggled goods being sold in the Hungarian market. The trend continued in 2008, despite the fact that there was a continued rise in unit prices of tobacco products due to tax increases applied to bring Hungary into line with EU levels.
Increasing health awareness
An important trend affecting the tobacco market was the growing health awareness of the Hungarian population. Incomes have been rising and due to the higher living standards in the country more people are paying attention to their personal wellbeing. Additionally, the government, EU and national and international health organisations are campaigning much more against smoking and regulations are being tightened in order to reduce the smoking rate in Hungary. In addition to the reduction in the rate of smoking in Hungary, the other impact this trend has had on the market was to encourage a move towards lighter cigarettes with lower tar levels. High-tar cigarettes have not been sold in the Hungarian market since 2004. Thus, this has led primarily to a shift from mid-tar cigarettes to low- and ultra-low tar cigarettes, and this trend is expected to prevail over the long term.
Economy products continue to dominate sales
The review period saw several price rises due to excise tax being increased on tobacco products in order to reach EU levels by the end of 2008. Considering that income levels are considerably lower in Hungary than the EU average, this made tobacco products much more expensive in Hungary than in other countries. Hungarian consumers are highly price-sensitive in the first place and the price increases resulted in an increase in illicit trade as well as growing demand in the low-price segment. Consequently, the end of the review period saw a continued move from mid- and premium products to the economy segment. This trend is expected to have an impact over the medium term, but in the long run it is expected that the steady increase in disposable incomes in Hungary will result in this trend coming to a halt, with increased demand in the mid and high-priced segments.
High price-sensitivity limits product innovation
Hungarians are highly price-sensitive and tobacco products became very expensive over the review period. Consequently, the main focus of the largest tobacco players was to keep demand steady and stop sales from declining by means of keeping prices at the same level by absorbing some of the tax increases at the expense of profitability. Given that product innovation carries a price premium, which presently the majority of Hungarian consumers are not able and willing to pay for, new product development was limited over the review period. The little product innovation that was seen over the review period was focused on packaging, eg moving from soft packs to flip-tops or from bigger to smaller packs. Apart from packaging, slims and superslims were another area of product development as producers tried to appeal to the growing number of female smokers.
Price hikes to have a negative impact in future
By the end of 2008 Hungary had to increase tax levels on tobacco products to match those of the EU. This had a negative influence on sales in 2008 and is likely to hamper growth in the short term. Tobacco products are very expensive for the majority of Hungarians which, accompanied by the growing health awareness of the population, is likely to result in a growing number of people trying to give up smoking. The decline in smoking prevalence is not expected to result in a decline in volume sales because stricter control over smuggled products is likely to result in a decline in illicit trade and this demand is expected to be realised in the economy price segment of the market in future.
Table of contents
TOBACCO IN HUNGARY : MARKET INSIGHT
EXECUTIVE SUMMARY
Surprising increase in sales in 2007
Increasing health awareness
Economy products continue to dominate sales
High price-sensitivity limits product innovation
Price hikes to have a negative impact in future
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2002-2007
Table 2 Number of Smokers by Gender 2002-2007
Death by Cause
Legislation
EU Directives
Minimum legal smoking age
Tar levels
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
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
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 6 Deaths by Diseases of the Respiratory System 2002-2007
Table 7 Deaths from Heart Disease 2002-2007
Table 8 Deaths from Lung Cancer 2002-2007
Table 9 Illicit Trade Estimate 2002-2007
MARKET DATA
Table 10 Sales of Tobacco by Sector: Volume 2002-2007
Table 11 Sales of Tobacco by Sector: Value 2002-2007
Table 12 Sales of Tobacco by Sector: % Volume Growth 2002-2007
Table 13 Sales of Tobacco by Sector: % Value Growth 2002-2007
Table 14 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007
Table 15 Forecast Sales of Tobacco by Sector: Volume 2007-2012
Table 16 Forecast Sales of Tobacco by Sector: Value 2007-2012
Table 17 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012
Table 18 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - HUNGARY
BRITISH AMERICAN TOBACCO MAGYARORSZAG KFT - TOBACCO - HUNGARY
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco Magyarorszag Kft: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 3 British American Tobacco Magyarorszag Kft: Competitive Position 2007
CONTINENTAL DOHáNYIPARI ZRT - TOBACCO - HUNGARY
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Continental Dohányipari ZRt: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 5 Continental Dohányipari ZRt: Competitive Position 2007
PHILIP MORRIS MAGYARORSZáG KFT - TOBACCO - HUNGARY
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Philip Morris Magyarország Kft: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 7 Philip Morris Magyarország Kft: Competitive Position 2007
CIGARETTES IN HUNGARY
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 8 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 19 Sales of Cigarettes by Tar Level: Volume 2002-2007
Table 20 Sales of Cigarettes by Tar Level: Value 2002-2007
Table 21 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007
Table 22 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007
Table 23 Sales of Cigarettes by Price Band: % Volume Breakdown 2002-2007
Table 24 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2002-2007
Table 25 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2002-2007
Table 26 Sales of Cigarettes by Filter Vs Non-filter 2002-2007
Table 27 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2002-2007
Table 28 Sales of Cigarettes by Length 2002-2007
Table 29 Sales of Cigarettes by Regular/Slim 2006-2007
Table 30 Sales of Cigarettes by Pack Size 2002-2007
Table 31 Sales of Cigarettes by Pack Type 2002-2007
Table 32 Cigarettes Company Shares 2003-2007
Table 33 Cigarettes Brand Shares 2004-2007
Table 34 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012
Table 35 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012
Table 36 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
Table 37 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
Table 38 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012
Table 39 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012
Table 40 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012
Table 41 Forecast Sales of Cigarettes by Filter Vs Non-filter 2007-2012
Table 42 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2007-2012
Table 43 Forecast Sales of Cigarettes by Length 2007-2012
Table 44 Forecast Sales of Cigarettes by Regular/Slim 2007-2012
Table 45 Forecast Sales of Cigarettes by Pack Size 2007-2012
Table 46 Forecast Sales of Cigarettes by Pack Type 2007-2012
CIGARS IN HUNGARY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 47 Sales of Cigars by Subsector: Volume 2002-2007
Table 48 Sales of Cigars by Subsector: Value 2002-2007
Table 49 Sales of Cigars by Subsector: % Volume Growth 2002-2007
Table 50 Sales of Cigars by Subsector: % Value Growth 2002-2007
Table 51 Company Shares of Cigars Exluding Cigarillos 2003-2007
Table 52 Brand Shares of Cigars Exluding Cigarillos 2004-2007
Table 53 Company Shares of Cigarillos 2003-2007
Table 54 Brand Shares of Cigarillos 2004-2007
Table 55 Forecast Sales of Cigars by Subsector: Volume 2007-2012
Table 56 Forecast Sales of Cigars by Subsector: Value 2007-2012
Table 57 Forecast Sales of Cigars by Subsector: % Volume Growth 2007-2012
Table 58 Forecast Sales of Cigars by Subsector: % Value Growth 2007-2012
SMOKING TOBACCO IN HUNGARY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 59 Sales of Smoking Tobacco by Subsector: Volume 2002-2007
Table 60 Sales of Smoking Tobacco by Subsector: Value 2002-2007
Table 61 Sales of Smoking Tobacco by Subsector: % Volume Growth 2002-2007
Table 62 Sales of Smoking Tobacco by Subsector: % Value Growth 2002-2007
Table 63 Company Shares of RYO Tobacco 2003-2007
Table 64 Brand Shares of RYO Tobacco 2004-2007
Table 65 Company Shares of Pipe Tobacco 2003-2007
Table 66 Brand Shares of Pipe 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