Growth of sales in 2012 on the background of general reduction in the review period
In the review period the market of tobacco saw gradual reduction of sales in per capita terms. This reflected the increasing understanding of the harmfulness of smoking among the Georgian population. Georgian people are increasingly gaining knowledge of the negative influence of tobacco use on the human organism generally and this has led many people to quit out of fear for their own health. As a result, volume sales of high on nicotine tobacco products declined over the review period. However, volume sales of tobacco increased in 2012, suggesting that health awareness is becoming less of a concern among Georgia’s remaining smokers. This may also be partially due to the more stressful lifestyles being led by many Georgians due to ongoing political and economic uncertainty. In fact, the majority of Georgian smokers tended to prefer higher quality cigarettes with lower tar levels at the end of the review period.
Reduced share of local cigarette brands
2012 saw further declines in volume sales of local cigarette brands. Earlier in the review period, the proportion of cigarettes sold in Georgia under domestic brands was much higher. However, sales gradually declined over the course of the review period. The reason for this is the higher quality of the wider range of imported cigarettes in Georgia, which are also more widely available. In addition, local cigarettes were previously much cheaper than similar imported brands, a price advantage which has declined significantly in recent years. As such, many smokers now prefer high-quality imported cigarettes which are only slightly more expensive than local brands, making it difficult for Georgian tobacco companies to compete against their international rivals.
Japan Tobacco Inc remains highly successful in Georgia
Japan Tobacco Inc remained the leading player in tobacco in Georgia during 2012. The reason for this company’s success was its leading brand Winston. The company introduced its new brand Winston X Style, which is more modern, at a lower unit price than similar quality brands. Winston’s new positioning pits it against more expensive brands than previously. Japan Tobacco Inc offers a wide range of products under the Winston brand, which is present in low tar, ultra low tar, slim, short and long/superking variants at a range of price points from economy to premium. In general, Japan Tobacco has very wide distribution in Georgia and engages in advertising for all of its brands in the country. Recently, the company has also engaged in packaging innovation.
Independent small grocers and tobacco specialists lead retail tobacco sales
No major changes were observed in the retail distribution of tobacco in 2012. The main retail distribution channels for tobacco in Georgia are independent small grocers and tobacco specialists. Tobacco specialists leads the retail distribution of cigars and cigarillos and smoking tobacco, while independent small grocers leads in cigarettes. Ten years ago, independent small grocers accounted for more than one half of retail volume sales of cigarettes in Georgia. However, tougher trade regulations have resulted in tobacco specialists gaining share from independent small grocers since 2005. Tobacco products are also widely available in supermarkets, hypermarkets, convenience stores and non-retail channels such as bar-tobacconists and hotels/restaurants/bars). During 2012, the share of tobacco sales in forecourt retailers increased due to growth of modern and better equipped forecourt retailers in Georgia.
Declines expected in cigarette consumption during the forecast period
Georgia has among the highest smoking prevalence rates in Europe. This, in turn, is connected to low incomes of general population in Georgia. In addition, smoking has been an important part of the lifestyle of Georgian people for many decades. However, the increasing understanding of the harm which can be caused by smoking among the general population of Georgia and rising health awareness are gradually compromising demand for tobacco. Smoking prevalence in Georgia is expected to decline over the forecast period, limiting growth in tobacco.
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Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in Georgia with research from Euromonitor's team of in-country analysts.
Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.
If you're in the Tobacco industry in Georgia, our research will save you time and money while empowering you to make informed, profitable decisions.
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The Tobacco in Georgia 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 Georgia?
- What are the major brands in Georgia?
- Which sector of the tobacco products market is the largest by value sales in Georgia?
- Which sector of the tobacco products market has been growing the fastest, by volume and value, in Georgia?
- Which sector is the most heavily taxed in Georgia?
- Which companies dominate in the total tobacco market in Georgia in terms of market share?
- What is the distribution channel split for the tobacco products market in Georgia?
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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.