Cross-border sales push volume growth in 2012
With smoking prevalence slightly declining, the main factor which boosted sales of tobacco in Belgium in 2012, especially cigarettes, was cross-border trade. In fact, whilst on average prices in Belgium are higher than in most European countries, they are still considerably lower than in France and the UK. Cross-border trade of cigarettes was thus the main reason why cigarettes managed to see volume growth in 2012.
RYO and MYO benefit from the decline in cigarettes excluding cross border sales
Smoking tobacco – chiefly roll-your-own (RYO) and make-your-own (MYO is classified as part of RYO tobacco) products – recorded solid volume growth in 2012. Its success stemmed not only from cross-border trade. This category, in comparison with cigarettes, was very dynamic. In fact, the rising prices of cigarettes led a number of consumers to shift to smoking tobacco.
The big four continue to lead sales
The so-called “big four” multinational companies (Philip Morris Belgium, British American Tobacco Belgium, Imperial Tobacco Belgium and JT International Co Netherlands) dominated tobacco in Belgium in 2012. The only domestic company was Gryson, which held a significant share in smoking tobacco.
Mainstream grocery retailers gain strength in 2012
Tobacco specialists saw a slight decline in volume share in cigarettes and smoking tobacco in 2012, but remained the backbone of retail sales for cigars in Belgium. Instead, in cigarettes and smoking tobacco, mainstream grocery retailers, including supermarkets and independent small grocers, performed very well, and saw an increase in volume share in 2012.
The shift from cigarettes to RYO and MYO is expected to continue
The Belgian tobacco market is very mature and highly legislated, and the future will remain highly restrained. There are two factors which will play a significant role in shaping the market in the future: unit prices and the overall economic context. The negative effects of the economic crisis – mainly unemployment – were amongst the main factors preventing people from smoking in the review period. By contrast, a relatively better economic performance, expected from 2014, could have the opposite effect. Aside, rising prices, especially in cigarettes, will diminish the impact of cross-border trade on domestic consumption, and will also keep boosting the shift from economy cigarettes to smoking tobacco. Overall, cigarettes is set to post a stronger volume decline in the forecast period, in contrast to smoking tobacco, which is set to see an increase in demand.
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Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in Belgium with research from Euromonitor's team of in-country analysts.
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The Tobacco in Belgium market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Production, imports by origin, exports by destination
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Tobacco in Belgium?
- What are the major brands in Belgium?
- Which sector of the tobacco products market is the largest by value sales in Belgium?
- Which sector of the tobacco products market has been growing the fastest, by volume and value, in Belgium?
- Which sector is the most heavily taxed in Belgium?
- Which companies dominate in the total tobacco market in Belgium in terms of market share?
- What is the distribution channel split for the tobacco products market in Belgium?
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- Gain competitive intelligence about market leaders
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This industry report originates from Passport, our Tobacco market research database.