Prior to the COVID-19 pandemic, excise tax was increased on cigarettes which affected the prices and therefore led to a decline in demand. Whilst this was the intention from the government, rather than stopping people smoking completely, this simply led to a further increase in illicit trade, which has been growing rapidly over the last couple of years since Bosnia-Herzegovina started adapting to the European Union and Tobacco Products Directive.
Although cigarettes will witness current value decline in response to the COVID-19 pandemic in 2020 overall, one benefit has arisen from the complex situation. Due to lockdown restrictions and border closures, illicit trade has been severely reduced throughout 2020.
Global cigarette giant, Philip Morris doo, will continue to lead in 2020, with no close contenders. However, there is a new contender in third place, FDS doo, which was created after a couple of years of takeover of Fabrika Duhana Sarajevo dd and serves to solely look after the tobacco part of the company.
Cigarettes will continue to witness current value decline over the forecast period, however at a slower rate than that seen in 2020. The main reason for this will be due to the COVID-19 pandemic coming to an end and consumers returning to pre pandemic purchasing patterns.
Over the forecast period, the main threats to cigarettes come from increasing excise taxes and declining incomes, which mean smokers are more inclined to purchase cigarettes more cheaply through illicit trade channels. Therefore, the main recovery opportunities are controlled by the government in Bosnia-Herzegovina, as only lowering or stabilising excise taxes will make cigarettes more affordable for consumers in the country and therefore tempt them back into purchasing through official channels.
One of the main consequences of the COVID-19 pandemic over the forecast period will be the ongoing economic difficulties, resulting in reduced disposable incomes. In 2020, GDP has declined by more than 5% which will affect the job market in 2021 and beyond.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Cigarettes industry in Bosnia and Herzegovina with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Cigarettes industry in Bosnia and Herzegovina, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Cigarettes research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page