Tobacco in Macedonia
Euromonitor International's Tobacco in Macedonia 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: 68 | Publication date: Sep 2009
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Executive summary
Stable market development due to reduction in illicit trade
Macedonia has a high per capita smoking rate, with cigarettes accounting for the majority of tobacco sales in the country. Tobacco volume sales declined in 2006 due to the increase in the availability of illegally imported cigarettes. Although this trend was reversed in 2008 due to tougher smuggling controls, illegally imported products are still estimated to account for 12-15% of total tobacco sales in the country. Despite a moderate decline in the per capita smoking rate in the country in 2008 due to an intensified anti-smoking campaign, tobacco value and volume sales continued to increase in 2008.
Regulation harmonization and stricter law enforcement
In accordance with international agreements and as a step towards harmonization with EU legislation, tobacco and tobacco products are now subject to increased regulation in Macedonia. A crucial development in 2008 was the equalization of excise rates for domestic and imported cigarettes, which forced domestic producers to increase prices and to reduce pack-sizes to 19 cigarettes in order to maintain prices. Enforcement of the ‘Law on Tobacco and Tobacco products’, which prohibits the sale of high-tar cigarettes, has prompted many manufacturers to replace high-tar products with mid-tar alternatives. Another impact on sales was caused by several adjustments to the ‘Law on Protection Against Smoking’ which, by the end of 2008, banned smoking in many public places, with a total ban expected to be brought into force at the beginning of 2010. Since January 2009, all manufacturers have been obliged to print health warnings on their tobacco products. Whilst warnings are currently limited to text, it is expected that new legislation will be passed later in 2009 that will oblige producers to also provide graphical warnings.
Domestic cigarette manufacturers dominate tobacco market
Cigarettes dominate tobacco product sales in Macedonia. Domestic cigarette manufacturer Tutunski Kombinat Skopje, now part of Imperial Tobacco Group, remained the leading player within the segment in 2008, recording a value share of 58%, and was followed by Tutunski Kombinat Prilep (27%). Croatian company Adris Group consolidated its third position, with its medium-priced Ronhill cigarette brand continuing to increase in popularity. Other important players are Philip Morris International Inc, which offers its Marlboro brand, and Japan Tobacco, which entered the market at the end of 2008, intensifying the competitive environment within the higher-priced segment. Sales within cigars and cigarillos continue to fluctuate due to the low volume and highly fragmented nature of these categories.
Kiosks and independent/small grocers dominate tobacco distribution
Sales of tobacco products are heavily regulated. The fact that such products are unavailable via the vending, self-service, and Internet channels means that stores are dominated by retail stores, especially independent/small grocers, newsagents, tobacconists, and kiosks which can be found throughout the country and are open long hours. The fact that cigarette prices are regulated and are the same within all channels means that the dominance of independent/small grocers, newsagents, tobacconists, and kiosks is purely the result of their greater convenience.
Stricter law enforcement and increased anti-smoking campaigning
Recent legislation amendments are expected to have a serious impact on the tobacco segment over the forecast period. Tobacco volume sales are expected to decline over the coming years and while constant value growth will remain positive, it will be significantly lower than during the review period. Whilst the per capita smoking rate is expected to remain relatively unchanged, smokers are expected to smoke less once the ban on smoking in all public places comes in force in 2010.
Table of contents
TOBACCO IN MACEDONIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Stable market development due to reduction in illicit trade
Regulation harmonization and stricter law enforcement
Domestic cigarette manufacturers dominate tobacco market
Kiosks and independent/small grocers dominate tobacco distribution
Stricter law enforcement and increased anti-smoking campaigning
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/ FCTC ratification
Country-specific legislation: Republic of Macedonia
Minimum legal smoking age
Tar levels
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
TAXATION AND DUTY LEVIES
Summary 1 Taxation and Duty Levies
Table 3 Average Cigarette Pack Price Breakdown: Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 4 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 5 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 6 Sales of Tobacco by Sector: Volume 2003-2008
Table 7 Sales of Tobacco by Sector: Value 2003-2008
Table 8 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 9 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 10 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 11 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 12 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 13 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 2 Research Sources
CIGARETTES
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Summary 3 Cigarettes - New Product Launches 2008
Prospects
Sector Background
Cigarettes: Price Bands
Summary 4 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 14 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 15 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 16 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 17 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 18 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 19 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 20 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 21 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 22 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 23 Sales of Cigarettes by Length 2003-2008
Table 24 Sales of Cigarettes by Regular/Slim 2006-2008
Table 25 Sales of Cigarettes by Pack Size 2003-2008
Table 26 Sales of Cigarettes by Pack Type 2003-2008
Table 27 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 28 Cigarettes Company Shares 2004-2008
Table 29 Cigarettes Brand Shares 2005-2008
Table 30 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 31 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 32 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 33 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 35 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 36 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 37 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 39 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 40 Forecast Sales of Cigarettes by Length 2008-2013
Table 41 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 42 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 43 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS AND CIGARILLOS
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
Sector Data
Table 44 Sales of Cigars by Subsector: Volume 2003-2008
Table 45 Sales of Cigars by Subsector: Value 2003-2008
Table 46 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 47 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 48 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 49 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 50 Company Shares of Cigarillos 2004-2008
Table 51 Brand Shares of Cigarillos 2005-2008
Table 52 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 53 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 54 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 55 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 56 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
SMOKELESS TOBACCO
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
TUTUNSKI KOMBINAT SKOPJE AD
Strategic Direction
Key Facts
Summary 5 Tutunski Kombinat Skopje AD: Key Facts
Summary 6 Tutunski Kombinat Skopje AD: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 7 Tutunski Kombinat Skopje AD: Competitive Position 2008
TUTUNSKI KOMBINAT PRILEP AD
Strategic Direction
Key Facts
Summary 8 Tutunski Kombinat Prilep ad: Key Facts
Summary 9 Tutunski Kombinat Prilep ad: Operational Indicators
Company Background
Production
Competitive Positioning
Summary 10 Tutunski Kombinat Prilep AD: Competitive Position 2008
ROVITA RONHILL DOOEL
Strategic Direction
Key Facts
Summary 11 Rovita Rohnill dooel: Key Facts
Company Background
Production
Competitive Positioning
Summary 12 Rovita Ronhill: Competitive Position 2008