Tobacco in the Czech Republic
Euromonitor International's Tobacco in the Czech Republic 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
Tobacco market grows slowly but continuously
Tobacco in the Czech Republic is growing, slowly but continuously, for several reasons. These include increasing cross-border business with Germany and Austria, growing incidence of underage smokers, rising numbers of illegal workers and tourism. The cross-border business may grow even more over the forecast period, following the Czech Republic’s joining of the Shengen Zone in December 2007.
The smoking incidence in the Czech Republic decreased during 2006-2007. Consequently, growth of the tobacco market is linked to factors such as increased border business and tourism, rather than to increased smoking rates.
Economy price band grows at expense of mid-priced price band
Price increases have led many Czech smokers to downtrade to cheaper, economy brands in order to save money. In 2007, the economy price band achieved its highest ever volume share of cigarettes, mainly at the expense of the mid-priced price band.
Tobacco prices continue to rise. This is particularly true of cigarettes, which are most affected by increases in VAT/sales taxes, ad valorem excise and specific taxes.
The perpetual price increases support contraband and illegal production of fake cigarettes. Another factor influencing the increasing trend for smuggling cigarettes is that the Czech Republic has joined the Shengen Zone. This means that smuggled cigarettes from Ukraine, Belarus, etc do not necessarily end up in the Czech Republic. Instead, the country serves as a major transit point for the supply of contraband to other countries.
Border business increases
The prices of cigarettes are still significantly lower in the Czech Republic than in neighbouring Germany and Austria. Consequently, border business is increasing, especially after the Czech Republic became an EU member in 2004. Border business should grow even more following the Czech Republic’s joining of the Schengen Zone in December 2007.
Smoking tobacco and cigars become more popular
In the face of continued rising prices for cigarettes, smoking tobacco is seen to have a price advantage. Increasing numbers of smokers are turning to make-your-own (MYO) or roll-your-own (RYO) products. Higher consumption of cigars has brought a wider range of products and cheaper prices.
Major international tobacco companies merge
2007 was a year of mergers. JT International took over Gallaher, Imperial Tobacco took over Altadis SA and British American Tobacco announced its plan to take over Skandinavisk Tobakskompagni. The newly merged companies will increase the pressure of competition on Philip Morris, which is the dominant tobacco player in the Czech Republic. The company suffered a significant fall in its volume share during the review period and faces a tough time over the forecast period.
Table of contents
TOBACCO IN THE CZECH REPUBLIC : MARKET INSIGHT
EXECUTIVE SUMMARY
Tobacco market grows slowly but continuously
Economy price band grows at expense of mid-priced price band
Border business increases
Smoking tobacco and cigars become more popular
Major international tobacco companies merge
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
Legislation:
Litigation
Taxation and Duty Levies
Table 3 Tobacco Contribution to the State Budget 1993-2008
Table 4 Taxation and Duty Levies – Cigarettes – 2002-2007
Table 5 Average Cigarette Pack Price Breakdown: Brand Examples
Table 6 Taxation and Duty Levies – Tobacco products detailed breakdown – 2001-2008
Production/Imports/Exports
Table 7 Trade Statistics – Cigarettes
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 8 Deaths by Diseases of the Respiratory System 2002-2007
Table 9 Deaths from Heart Disease 2002-2007
Table 10 Deaths from Lung Cancer 2002-2007
Table 11 Illicit Trade Estimate 2002-2007
MARKET DATA
Table 12 Sales of Tobacco by Sector: Volume 2002-2007
Table 13 Sales of Tobacco by Sector: Value 2002-2007
Table 14 Sales of Tobacco by Sector: % Volume Growth 2002-2007
Table 15 Sales of Tobacco by Sector: % Value Growth 2002-2007
Table 16 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007
Table 17 Forecast Sales of Tobacco by Sector: Volume 2007-2012
Table 18 Forecast Sales of Tobacco by Sector: Value 2007-2012
Table 19 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012
Table 20 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CZECH REPUBLIC
BRITISH AMERICAN TOBACCO CR SRO - TOBACCO - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco CR sro: Key Facts
Summary 3 British American Tobacco CR sro: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 4 British American Tobacco CR sro: Competitive Position 2007
JT INTERNATIONAL SPOL SRO - TOBACCO - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 5 JT International spol sro: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 6 JT International spol sro: Competitive Position 2007
PHILIP MORRIS CR AS - TOBACCO - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Philip Morris CR as: Key Facts
Summary 8 Philip Morris CR as: Operational Indicators
COMPANY BACKGROUND
Production by Factory
Summary 9 Philip Morris CR as: Production Statistics by Factory in million sticks
COMPETITIVE POSITIONING
Summary 10 Philip Morris CR as: Competitive Position 2007
SKANDINAVISK TOBAKSKOMPAGNI A/S - TOBACCO - CZECH REPUBLIC
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Scandinavian Tobacco sro: Key Facts
Summary 12 Scandinavian Tobacco sro: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 13 Scandinavian Tobacco sro: Competitive Position 2007
CIGARETTES IN THE CZECH REPUBLIC
HEADLINES
TRENDS
Cross-border factors
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 14 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
New Product Developments
Summary 15 Cigarettes: New Product Launches
PROSPECTS
SECTOR DATA
Table 21 Sales of Cigarettes by Tar Level: Volume 2002-2007
Table 22 Sales of Cigarettes by Tar Level: Value 2002-2007
Table 23 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007
Table 24 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007
Table 25 Sales of Cigarettes by Price Band: %Volume Breakdown 2002-2007
Table 26 Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2002-2007
Table 27 Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2002-2007
Table 28 Sales of Cigarettes by Filter Vs Non-filter 2002-2007
Table 29 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2002-2007
Table 30 Sales of Cigarettes by Length 2002-2007
Table 31 Sales of Cigarettes by Regular/Slim 2006-2007
Table 32 Sales of Cigarettes by Pack Size 2002-2007
Table 33 Sales of Cigarettes by Pack Type 2002-2007
Table 34 Cigarettes Company Shares 2003-2007
Table 35 Cigarettes Brand Shares 2004-2007
Table 36 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012
Table 37 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012
Table 38 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
Table 39 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
Table 40 Forecast Sales of Cigarettes by Price Band: %Volume Breakdown 2007-2012
Table 41 Forecast Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2007-2012
Table 42 Forecast Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2007-2012
Table 43 Forecast Sales of Cigarettes by Filter Vs Non-filter 2007-2012
Table 44 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2007-2012
Table 45 Forecast Sales of Cigarettes by Length 2007-2012
Table 46 Forecast Sales of Cigarettes by Regular/Slim 2007-2012
Table 47 Forecast Sales of Cigarettes by Pack Size 2007-2012
Table 48 Forecast Sales of Cigarettes by Pack Type 2007-2012
CIGARS IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
PROSPECTS
SECTOR DATA
Table 49 Sales of Cigars by Subsector: Volume 2002-2007
Table 50 Sales of Cigars by Subsector: Value 2002-2007
Table 51 Sales of Cigars by Subsector: % Volume Growth 2002-2007
Table 52 Sales of Cigars by Subsector: % Value Growth 2002-2007
Table 53 Company Shares of Cigars Exluding Cigarillos 2003-2007
Table 54 Brand Shares of Cigars Exluding Cigarillos 2004-2007
Table 55 Company Shares of Cigarillos 2003-2007
Table 56 Brand Shares of Cigarillos 2004-2007
Table 57 Forecast Sales of Cigars by Subsector: Volume 2007-2012
Table 58 Forecast Sales of Cigars by Subsector: Value 2007-2012
Table 59 Forecast Sales of Cigars by Subsector: % Volume Growth 2007-2012
Table 60 Forecast Sales of Cigars by Subsector: % Value Growth 2007-2012
SMOKING TOBACCO IN THE CZECH REPUBLIC
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
PROSPECTS
SECTOR DATA
Table 61 Sales of Smoking Tobacco by Subsector: Volume 2002-2007
Table 62 Sales of Smoking Tobacco by Subsector: Value 2002-2007
Table 63 Sales of Smoking Tobacco by Subsector: % Volume Growth 2002-2007
Table 64 Sales of Smoking Tobacco by Subsector: % Value Growth 2002-2007
Table 65 Company Shares of RYO Tobacco 2003-2007
Table 66 Brand Shares of RYO Tobacco 2004-2007
Table 67 Company Shares of Pipe Tobacco 2003-2007
Table 68 Brand Shares of Pipe Tobacco 2004-2007
Table 69 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012
Table 70 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012
Table 71 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012
Table 72 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012