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: 82 | Publication date: Oct 2008
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
On-trade smoking ban slows growth in tobacco volume sales
On January 1st 2007, a total ban on smoking in public catering establishments such as cafés, bars, clubs and restaurants came into effect in Lithuania. The ban was adopted quickly and without significant resistance from consumers. However, it did cause volume sales growth to slow in the cigarettes, cigars and smoking tobacco sectors.
Excise tax hike drives cigarettes prices upwards in 2007
In line with an EU directive, on March 1st 2007 excise taxes on cigarettes were increased in Lithuania, resulting in a significant rise in average unit prices within the sector. Companies had stockpiled large quantities of cigarettes prior to the application of the directive, and continued selling them at the old prices for almost six months after the excise tax hike came into effect. This helped to prevent a sharp rise in demand for cheaper contraband cigarettes. However, with excise taxes on cigarettes set to rise once more in 2008, it is likely that contraband trade in the sector will increase over the first half of the forecast period.
Cigarettes suffers from excise tax hike and public smoking ban
Despite the smoking ban and the excise tax hike, the Lithuanian cigarettes sector continued to show growth in volume and current value terms in 2007. However, growth in volume sales was markedly slower than in 2006, partly due to the fact that contraband trade in the sector rose following the increase in excise taxes. Current value growth was much faster than in 2006, as the tax hike pushed average unit prices upwards and rising disposable incomes encouraged some consumers to trade up to more expensive brands. In line with rising health awareness, the shift from mid tar to low and ultra low tar cigarettes also continued in 2007. However, with more tax hikes and an increase in contraband trade expected, the outlook for the cigarettes sector over the forecast period is not very bright.
Philip Morris retains its commanding lead in cigarettes, the largest sector
In 2007 Philip Morris Lietuva UAB retained its dominant position in cigarettes, the largest sector in the Lithuanian tobacco market. It was the leading player in mid tar, low tar and ultra low tar cigarettes, and managed to increase its volume share in all three categories. The company’s leading position was attributable to its broad product portfolio, which covers all price bands. This was reflected in the fact that it owned four of the top five cigarettes brands in 2007: L&M, Red & White, Marlboro and Bond Street. Japan Tobacco Inc was the second leading player in cigarettes, followed by Skandinavisk Tobakskompagni A/S, Gallaher Group Plc and British American Tobacco Plc.
Cigars and cigarillos prove increasingly popular with Lithuanian smokers
Cigars and cigarillos proved increasingly popular with Lithuanian consumers in 2007, with the ban on smoking in on-trade establishments failing to slow volume growth in the sector to the same extent as it did in cigarettes. Growth in volume sales was boosted by rising demand for mass market cigarillos and small cigars in different flavours, which were preferred by consumers who were new to the sector, while more experienced smokers tended to opt for higher quality large cigars. The liquidation of cigars company Tabako Lapas attracted new players into the sector, most notably Cigar House, which offers the largest assortment of premium cigars in Lithuania. With more new entries predicted, cigars and cigarillos is expected to show the fastest growth in volume and constant value terms of any tobacco sector over the forecast period.
Table of contents
TOBACCO IN LITHUANIA : MARKET INSIGHT
EXECUTIVE SUMMARY
On-trade smoking ban slows growth in tobacco volume sales
Excise tax hike drives cigarettes prices upwards in 2007
Cigarettes suffers from excise tax hike and public smoking ban
Philip Morris retains its commanding lead in cigarettes, the largest sector
Cigars and cigarillos prove increasingly popular with Lithuanian smokers
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 2002-2007
Table 4 Average Cigarette Pack Price Breakdown: Brand Examples
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes 2003-2007
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
PHILIP MORRIS LIETUVA UAB
Strategic Direction
Key Facts
Summary 2 Philip Morris Lietuva UAB: Key Facts
Summary 3 Philip Morris Lietuva UAB: Operational Indicators 2005-2007
Company Background
Production BY FACTORY
Table 19 Production Statistics by Factory 2003-2007
Competitive Positioning
Summary 4 Philip Morris Lietuva UAB: Competitive Position 2007
JTI MARKETING AND SALES UAB
Strategic direction
Key Facts
Summary 5 JTI Marketing and Sales UAB: Key Facts
Summary 6 JTI Marketing & Sales UAB: Operational Indicators 2005-2007
Company Background
Production BY FACTORY
Competitive Positioning
Summary 7 JTI Marketing and Sales UAB: Competitive Position 2007
SKONIS IR KVAPAS UAB
Strategic direction
key facts
Summary 8 Skonis ir Kvapas UAB: Key Facts
Company Background
Production BY FACTORY
Competitive Positioning
BENNET DISTRIBUTORS UAB
Strategic direction
key facts
Summary 9 Bennet Distributors UAB: Key Facts
Summary 10 Bennet Distributors UAB: Operational Indicators 2005-2007
Company Background
Production BY FACTORY
Competitive Positioning
CIGARETTES IN LITHUANIA
Headlines
Trends
Summary 11 Cigarette Price Band Definitions
Competitive Landscape
Prospects
Sector Data
Table 20 Sales of Cigarettes by Tar Level: Volume 2002-2007
Table 21 Sales of Cigarettes by Tar Level: Value 2002-2007
Table 22 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007
Table 23 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007
Table 24 Sales of Cigarettes by Price Band: % Volume Breakdown 2002-2007
Table 25 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2002-2007
Table 26 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2002-2007
Table 27 Sales of Cigarettes by Filter Vs Non-filter 2002-2007
Table 28 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2002-2007
Table 29 Sales of Cigarettes by Length 2002-2007
Table 30 Sales of Cigarettes by Regular/Slim 2006-2007
Table 31 Sales of Cigarettes by Pack Size 2002-2007
Table 32 Sales of Cigarettes by Pack Type 2002-2007
Table 33 Cigarettes Company Shares 2003-2007
Table 34 Cigarettes Brand Shares 2004-2007
Table 35 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012
Table 36 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012
Table 37 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
Table 38 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
Table 39 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012
Table 40 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012
Table 41 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012
Table 42 Forecast Sales of Cigarettes by Filter Vs Non-filter 2007-2012
Table 43 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2007-2012
Table 44 Forecast Sales of Cigarettes by Length 2007-2012
Table 45 Forecast Sales of Cigarettes by Regular/Slim 2007-2012
Table 46 Forecast Sales of Cigarettes by Pack Size 2007-2012
Table 47 Forecast Sales of Cigarettes by Pack Type 2007-2012
CIGARS AND CIGARILLOS IN LITHUANIA
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 48 Sales of Cigars by Subsector: Volume 2002-2007
Table 49 Sales of Cigars by Subsector: Value 2002-2007
Table 50 Sales of Cigars by Subsector: % Volume Growth 2002-2007
Table 51 Sales of Cigars by Subsector: % Value Growth 2002-2007
Table 52 Company Shares of Cigars Exluding Cigarillos 2003-2007
Table 53 Brand Shares of Cigars Exluding Cigarillos 2004-2007
Table 54 Company Shares of Cigarillos 2003-2007
Table 55 Brand Shares of Cigarillos 2004-2007
Table 56 Forecast Sales of Cigars by Subsector: Volume 2007-2012
Table 57 Forecast Sales of Cigars by Subsector: Value 2007-2012
Table 58 Forecast Sales of Cigars by Subsector: % Volume Growth 2007-2012
Table 59 Forecast Sales of Cigars by Subsector: % Value Growth 2007-2012
SMOKING TOBACCO IN LITHUANIA
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 60 Sales of Smoking Tobacco by Subsector: Volume 2002-2007
Table 61 Sales of Smoking Tobacco by Subsector: Value 2002-2007
Table 62 Sales of Smoking Tobacco by Subsector: % Volume Growth 2002-2007
Table 63 Sales of Smoking Tobacco by Subsector: % Value Growth 2002-2007
Table 64 Company Shares of RYO Tobacco 2003-2007
Table 65 Brand Shares of RYO Tobacco 2004-2007
Table 66 Company Shares of Pipe Tobacco 2003-2007
Table 67 Brand Shares of Pipe Tobacco 2004-2007
Table 68 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012
Table 69 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012
Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012
Table 71 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012