Tobacco in Lithuania
Euromonitor International's Tobacco in Lithuania 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: 81 | Publication date: Nov 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
Executive summary
Positive volume and value growth
Value sales of Lithuanian tobacco continued to grow strongly in 2008. This was mostly attributable to an increase in the excise tax on cigarettes, which resulted in significant price hikes. Volume sales also maintained a positive growth trend in 2008. This was mainly the result of a decline in illicit trade, due to strengthened border controls and preventive work by the authorities.
Strong trends towards “lighter” smoking and slim cigarettes
Lithuanian tobacco is influenced by two key trends. Firstly, smokers are moving towards “lighter”, smoother-tasting products, especially in the premium price band. Many consumers perceive lower tar cigarettes to be less harmful, although, according to healthcare professionals, this is not necessarily true. Secondly, slim cigarettes are becoming more popular among both male and female smokers. To fulfil the growing demand, companies are launching new and innovative products, expanding existing brand lines and upgrading product packaging.
Competitive environment becomes more consolidated
Lithuanian tobacco is dominated by Philip Morris Lietuva UAB, the only manufacturer and exporter of tobacco products in the country. The company owns the three leading cigarettes brands, L&M, Red & White and Marlboro. In 2008, the market witnessed further consolidation, which left only three strong cigarettes companies. Both JTI Marketing & Sales UAB and British American Tobacco Lietuva UAB substantially increased their volume shares, following the acquisitions of Gallaher Group Plc and Skandinavisk Tobakskompagni A/S, respectively. In cigars and cigarillos and smoking tobacco, Skonis ir Kvapas UAB is the dominant distributor.
Supermarkets/hypermarkets is the leading distribution channel
Distribution of tobacco products in Lithuania is changing, in line with the growing popularity of modern retail outlets and weekly shopping habits. Consumers are shopping more frequently in supermarkets/hypermarkets, the network of which expanded considerably during the review period. In 2008, supermarkets/hypermarkets comprised the leading distribution channel for cigarettes. Small grocery retailers accounted for the second largest volume share, with convenience stores growing at the expense of independent small grocers. Distribution of cigars and cigarillos and smoking tobacco is limited to three channels. Tobacco specialists holds the dominant volume share, followed by supermarkets/hypermarkets.
Further excise tax growth and economic slowdown will have a major impact
In the short term, Lithuanian tobacco will be strongly affected by the increase in cigarettes excise tax. This is due to take place twice in 2009, in order to meet the required EU minimum level by the beginning of 2010. The deepening economic crisis will also have an important impact. According to industry sources, the slowing economy is more likely to lead to higher levels of illicit trade and increased consumer trading-down to cheaper brands, than a significant downturn in consumption. However, healthcare experts believe that further excise tax increases will lead to a gradual decline in cigarettes consumption. Throughout the forecast period, volume sales of cigarettes are expected to fall, while value growth will maintain a positive trend.
Table of contents
TOBACCO IN LITHUANIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Positive volume and value growth
Strong trends towards “lighter” smoking and slim cigarettes
Competitive environment becomes more consolidated
Supermarkets/hypermarkets is the leading distribution channel
Further excise tax growth and economic slowdown will have a major impact
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
Minimum legal smoking age
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
LOCAL COMPANY PROFILES - LITHUANIA
JTI MARKETING & SALES UAB - TOBACCO - LITHUANIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 JTI Marketing and Sales UAB: Key Facts
Summary 3 JTI Marketing and Sales UAB: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 JTI Marketing and Sales UAB: Competitive Position 2008
PHILIP MORRIS LIETUVA UAB - TOBACCO - LITHUANIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Philip Morris Lietuva UAB: Key Facts
Summary 6 Philip Morris Lietuva UAB: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Philip Morris Lietuva UAB: Competitive Position 2008
SKONIS IR KVAPAS UAB - TOBACCO - LITHUANIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Skonis ir Kvapas UAB: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
CIGARETTES IN LITHUANIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 9 Cigarettes - New Product Launches 2008
PROSPECTS
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 10 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 IN LITHUANIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
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 IN LITHUANIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
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 IN LITHUANIA
TRENDS