Tobacco in Romania
Euromonitor International's Tobacco in Romania 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: 87 | Publication date: Jul 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
Romanians are heavy smokers
According to official statistics, Romania has strong and stable tobacco sales because Romanians are heavy smokers. This situation is not new or transient, but traditional, with a well-established pre-revolutionary history. This history is, however, one of marked domination by national manufacturers. At the beginning of the 1990s, Romania’s opening to foreign investments brought it within reach of the most important international tobacco product manufacturers. They found in Romania a tobacco market that was already strong, yet far from saturation and with huge potential. This opening, supported by weak tobacco-related legislation, led to an interest in tobacco at the beginning of the 1990s. Romanians were fascinated by the array of cigarettes and brands on offer, and that were promoted with aggressive advertising. Romanians quickly turned towards the new brands as a result. For many years, advertising tobacco through all media and without boundaries raised the curiosity of many non-smokers – especially young ones. Youth smoking was prevalent over the review period, and the overall smoking prevalence in Romania is currently forecast to increase.
Romanian smokers trading quantity for quality
At the beginning of the review period, economy and mid-priced brands practically sliced cigarette sales into two halves. However, the situation in 2007 was quite different, as consumers demanded higher quality products. Premium products’ share of cigarette sales in Romania increased significantly in 2007, while economy products experienced volume share decrease. As for mid-priced products, due to their wide diversity and availability, they accounted for the largest proportion of volume sales.
Due to increasing taxes, prices of tobacco products will match EU levels
The value of excises on tobacco products in Romania varies from one type of product to another, but with one common aspect. Values are continually increasing, in order for excises to reach a level suitable for the EU. By 2010, Romanian cigarettes is expected to be aligned with EU prices for cigarettes. Romanian authorities continue to raise taxes, by improving the laws that stipulate their most appropriate value at a certain point. Consequently, at least three times a year, excises rocket, and this will become even more frequent and powerful during the early forecast period. This makes it difficult for cheaper local brands to compete against higher quality products that offer more value for money.
Romanian consumers becoming increasingly health conscious
Health awareness increased amongst Romanian consumers over the review period. Contributors were improvements in lifestyles and public campaigns against smoking. In response, cigarette manufacturers launched new ‘healthier’ varieties of their products. In 2007, low tar cigarettes was more popular than in previous review years, seeing its highest growth in that year. Filtered cigarettes controlled the vast majority of cigarette sales throughout the review period. This trend is expected to continue increasing over the forecast period, until unfiltered cigarettes is non-existent.
Multinationals control tobacco in Romania
The days are long gone when local players can compete against multinationals. Across all tobacco categories, multinationals led. Local players could not compete against them because multinationals offered higher quality products across a wider distribution network. They also marketed their products more successfully. While contraband level steadied during the last review year, it had a very negative impact on local players. Multinational firms were able to survive despite high contraband levels, while local tobacco manufacturers producing cheaper cigarettes faced hardship. Many tobacco consumers that could not afford legal high quality cigarettes purchased them through illicit trade, instead of buying local products that were of inferior quality. Multinationals are expected to strengthen their position even further over the forecast period.
Table of contents
TOBACCO IN ROMANIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Romanians are heavy smokers
Romanian smokers trading quantity for quality
Due to increasing taxes, prices of tobacco products will match EU levels
Romanian consumers becoming increasingly health conscious
Multinationals control tobacco in Romania
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
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 – Value
Table 6 Trade Statistics – Cigarettes – Volume
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 7 Deaths by Diseases of the Respiratory System 2002-2007
Table 8 Deaths from Heart Disease 2002-2007
Table 9 Deaths from Lung Cancer 2002-2007
Table 10 Illicit Trade Estimate 2002-2007
MARKET DATA
Table 11 Sales of Tobacco by Sector: Volume 2002-2007
Table 12 Sales of Tobacco by Sector: Value 2002-2007
Table 13 Sales of Tobacco by Sector: % Volume Growth 2002-2007
Table 14 Sales of Tobacco by Sector: % Value Growth 2002-2007
Table 15 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007
Table 16 Forecast Sales of Tobacco by Sector: Volume 2007-2012
Table 17 Forecast Sales of Tobacco by Sector: Value 2007-2012
Table 18 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012
Table 19 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - ROMANIA
BRITISH AMERICAN TOBACCO ROMANIA SRL - TOBACCO - ROMANIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco Romania SRL: Key Facts
Summary 3 British American Tobacco Romania SRL: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 4 British American Tobacco Romania SRL: Competitive Position 2007
GALLAHER ROMANIA SRL - TOBACCO - ROMANIA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Gallaher Romania SRL: Key Facts
Summary 6 Gallaher Romania SRL: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 7 Gallaher Romania SRL: Competitive Position 2007
JPB TRADE SRL - TOBACCO - ROMANIA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 JPB Trade SRL: Key Facts
Summary 9 JPB Trade SRL: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 10 JPB Trade SRL: Competitive Position 2007
JT INTERNATIONAL (ROMANIA) SRL - TOBACCO - ROMANIA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 JT International (Romania) SRL: Key Facts
Summary 12 JT International (Romania) SRL: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 13 JT International (Romania) SRL: Competitive Position 2007
PHILIP MORRIS ROMANIA SRL - TOBACCO - ROMANIA
STRATEGIC DIRECTION
KEY FACTS
Summary 14 Philip Morris Romania SRL: Key Facts
Summary 15 Philip Morris Romania SRL: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 16 Philip Morris Romania SRL: Competitive Position 2007
CIGARETTES IN ROMANIA
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 17 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
New Product Developments
Summary 18 Cigarettes: New Product Launches 2007/2008
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 IN ROMANIA
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 ROMANIA
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 Pipe Tobacco 2003-2007
Table 65 Brand Shares of Pipe Tobacco 2004-2007
Table 66 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012
Table 67 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012
Table 68 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012
Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012