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.
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Tables: 86 | 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
Smoky skies over the tobacco market
Sales of cigarettes, the largest sector in tobacco, declined throughout the review period in terms of volume sales. This was due to the fact that tobacco prices increased considerably over the same period. These price increases can be attributed to Hungary joining the EU, thus having to comply with EU legislation and being obliged to bring tax levels on tobacco products up to the EU level. Thus, as a result of the price hikes over the 2002-2006 period, cigarette sales declined. The decline was also due to declining smoking rates, as well as the increasing importance of illegal cigarettes consumed in Hungary.
Illicit trade halves in 2006
The importance of illicit trade increased radically over the review period due to the drastic increase in unit prices in the Hungarian tobacco market. The end of the review period however saw a significant improvement in this respect, as during 2006 illegal sales of tobacco products were estimated to halve. This was due to the joint efforts of Hungarian authorities, manufacturers and distributors of tobacco products, and trade associations. The consumption of illegal tobacco products in Hungary caused significant losses for both manufacturers and the Hungarian state over the review period.
Demand shifting towards economy products
Because of the increase in unit prices over recent years due to increasing taxes on tobacco products, demand has been shifting towards the economy segment of the market. This can primarily be attributed to the fact that although income levels have been rising steadily over the past decade, they are still relatively low in Hungary, and thus consumers are very price-sensitive in general. Consequent to rising demand in the lower end of the market, many players increased their presence in the economy segment by re-positioning brands which were previously targeted at the middle to high-end of the market. They also launched new brands specifically targeted at the most price-sensitive consumer groups.
Healthier living to hamper growth
Another factor which has been a negative influence on tobacco sales is the growing health awareness in Hungary. With increasing income levels the standard of living of the Hungarian population has also been improving. This enabled consumers to pay more attention to their personal well-being. In addition, over recent years a great deal more attention was paid to the health status of the population by the Hungarian state and other organisations. Awareness of health issues is therefore increasing, which has reduced smoking rates. This trend is expected to continue, and is likely to play an even more significant role in the years to come.
Gloomy future ahead
The Hungarian tobacco market is expected to continue to decline during the forecast period. This is because prices will be further increased in order to comply with EU legislation, while smoking rates are also expected to continue to decline. On the positive side, the size of the illegal market is expected to further decrease due to more effective customs control and the joint efforts of market players. However, this will only mean the stabilisation of sales - growth is very unlikely to occur in the forecast period. The development of the tobacco market will continue to be determined by the cigarettes sector, which is by far the largest of the three sectors in Hungary. Thus decline is expected, despite the fact that both cigars and smoking tobacco products are forecast to record gains in the forecast period.
Table of contents
TOBACCO IN HUNGARY : MARKET INSIGHT
EXECUTIVE SUMMARY
Smoky skies over the tobacco market
Illicit trade halves in 2006
Demand shifting towards economy products
Healthier living to hamper growth
Gloomy future ahead
OPERATING ENVIRONMENT
Smoking Population
Table 1 Smoking Prevalence in Population (18+) 2001-2006
Table 2 Number of Smokers by Gender (18+) 2001-2006
Death by Smoking
Legislation
EU directives
Tar
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies 2001-2006
Table 4 Average Cigarette Pack Price Breakdown 2006
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 2001-2006
Table 7 Deaths from Heart Disease 2001-2006
Table 8 Deaths from Lung Cancer 2001-2006
Table 9 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 10 Sales of Tobacco by Sector: Volume 2001-2006
Table 11 Sales of Tobacco by Sector: Value 2001-2006
Table 12 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 13 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 14 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 15 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 16 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 17 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 18 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
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 Magyarország Kft: Key Facts
Summary 3 British American Tobacco Magyarország Kft: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 4 British American Tobacco Magyarország Kft: Production Statistics by Factory 2002-2006
COMPETITIVE POSITIONING
Summary 5 British American Tobacco Magyarország Kft: Competitive Position 2006
CONTINENTAL DOHáNYIPARI ZRT - TOBACCO - HUNGARY
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Continental Dohányipari ZRt: Key Facts
Summary 7 Continental Dohányipari ZRt (V Tabak Rt) : Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 8 Continental Dohányipari ZRt (V Tabak Rt): Production Statistics by Factory 2002-2006
COMPETITIVE POSITIONING
Summary 9 Continental Dohányipari ZRt (V Tabak Rt): Competitive Position 2006
IMPERIAL TOBACCO MAGYARORSZáG KFT - TOBACCO - HUNGARY
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Imperial Tobacco Magyarország Dohányforgalmazó Kft: Key Facts
Summary 11 Imperial Tobacco Magyarország Dohányforgalmazó Kft: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 12 Imperial Tobacco Magyarország Dohányforgalmazó Kft: Production Statistics by Factory 2003
COMPETITIVE POSITIONING
Summary 13 Imperial Tobacco Magyarország Dohányforgalmazó Kft: Competitive Position 2006
PHILIP MORRIS MAGYARORSZáG KFT - TOBACCO - HUNGARY
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Philip Morris Magyarország Kft: Key Facts
Summary 15 Philip Morris Magyarország Kft: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 16 Philip Morris Magyarország Kft: Production Statistics by Factory 2002-2006
COMPETITIVE POSITIONING
Summary 17 Philip Morris Magyarország Kft: Competitive Position 2006
CIGARETTES IN HUNGARY
HEADLINES
TRENDS
Illicit trade
Cigarettes: Price Bands
Cigarettes: Filter Splits
Table 19 Slims/superslims Penetration
Cigarettes: Pack Splits
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 20 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 21 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 22 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 23 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 24 Sales of Cigarettes by Price Band: %Volume Breakdown 2001-2006
Table 25 Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2001-2006
Table 26 Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2001-2006
Table 27 Sales of Cigarettes by Filter Vs Non-filter 2001-2006
Table 28 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2001-2006
Table 29 Sales of Cigarettes by Length 2001-2006
Table 30 Sales of Cigarettes by Pack Size 2001-2006
Table 31 Sales of Cigarettes by Pack Type 2001-2006
Table 32 Cigarettes Company Shares 2002-2006
Table 33 Cigarettes Brand Shares 2003-2006
Table 34 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 35 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 36 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 37 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 38 Forecast Sales of Cigarettes by Price Band: %Volume Breakdown 2006-2011
Table 39 Forecast Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2006-2011
Table 40 Forecast Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2006-2011
Table 41 Forecast Sales of Cigarettes by Filter Vs Non-filter 2006-2011
Table 42 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2006-2011
Table 43 Forecast Sales of Cigarettes by Length 2006-2011
Table 44 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 45 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN HUNGARY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 46 Sales of Cigars by Subsector: Volume 2001-2006
Table 47 Sales of Cigars by Subsector: Value 2001-2006
Table 48 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 49 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 50 Company Shares of Cigars Exluding Cigarillos 2002-2006
Table 51 Brand Shares of Cigars Exluding Cigarillos 2003-2006
Table 52 Company Shares of Cigarillos 2002-2006
Table 53 Brand Shares of Cigarillos 2003-2006
Table 54 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 55 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 56 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 57 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO IN HUNGARY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 58 Sales of Smoking Tobacco by Subsector: Volume 2001-2006
Table 59 Sales of Smoking Tobacco by Subsector: Value 2001-2006
Table 60 Sales of Smoking Tobacco by Subsector: % Volume Growth 2001-2006
Table 61 Sales of Smoking Tobacco by Subsector: % Value Growth 2001-2006
Table 62 Company Shares of RYO Tobacco 2002-2006
Table 63 Brand Shares of RYO Tobacco 2003-2006
Table 64 Company Shares of Pipe Tobacco 2002-2006
Table 65 Brand Shares of Pipe Tobacco 2003-2006
Table 66 Forecast Sales of Smoking Tobacco by Subsector: Volume 2006-2011
Table 67 Forecast Sales of Smoking Tobacco by Subsector: Value 2006-2011
Table 68 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2006-2011
Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2006-2011