Executive Summary

Jul 2019
PROSPECTS
Price hikes lead to increase in illicit trade

Although illicit trade levels remained low and stable over the early part of the review period, steep price hikes in 2017 and 2018 due to tax and price increases led to the share of illicit sales rising again in both years, as smuggling from neighbouring countries increased. Russia and Armenia levy lower taxes on cigarettes, meaning retail prices are lower in these countries.

Lower taxes benefit non-filter cigarettes

Different levels of excise duty are levied on filter and non-filter cigarettes in Georgia. In 2018 the duty payable on a pack of 20 non-filter cigarettes amounted to GEL0.

Health trends lead to a decline in smoking prevalence

The health and wellness trend continued to lead to retail volume declines in cigarettes in 2018. An increasing number of Georgians are seeking to remain or become healthy and increase their fitness levels, with gym membership and the number of runners competing in marathons both on the rise.

COMPETITIVE LANDSCAPE
Lower excise tax on non-filter cigarettes benefits local player

The recent excise tax rises on cigarettes led to a switch away from premium cigarettes to mid price and economy formats in 2018, especially among lower-income consumers. Domestic producer, Tbilisi Tobacco JSC, benefited from this with its popular Pirveli brand in the economy segment.

Expensive leading brands lose share while Philip Morris powers on

Some of the leading brands, including Winston and Sobranie by Japan Tobacco and Kent by British American Tobacco Georgia lost share in 2018 as increased prices encouraged smokers to switch to less expensive, economy brands. Economy brands such as Astra by Omega Group Tobacco continued to gain share gradually.

New launches focus on the economy segment

New brand launches were restricted to the economy segment in 2017 and 2018. NRG, launched by Omega Tobacco Group, follows the concept of Pirveli by Tbilisi Tobacco JSC in that it is non-filter but provides a separate box of filters which can be added by the consumer.

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Cigarettes in Georgia

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Overview

Discover the latest market trends and uncover sources of future market growth for the Cigarettes 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 Cigarettes industry in Georgia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Cigarettes 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, and exports of finished cigarettes
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Cigarettes in Georgia?
  • What are the major brands in Georgia?
  • What is the legislative environment like in Georgia?
  • What are the rates of cigarette taxation in Georgia?
  • Do premium, mid-price or economy cigarettes dominate in Georgia?
  • What is the rate of illicit trade in Georgia?
  • How many smokers are there in the country?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Tobacco market research database.

Cigarettes in Georgia - Category analysis

HEADLINES

PROSPECTS

Price hikes lead to increase in illicit trade
Lower taxes benefit non-filter cigarettes
Health trends lead to a decline in smoking prevalence

COMPETITIVE LANDSCAPE

Lower excise tax on non-filter cigarettes benefits local player
Expensive leading brands lose share while Philip Morris powers on
New launches focus on the economy segment

TAXATION AND PRICING

Taxation rates
Summary 1 Taxation and Duty Levies 2013-2018
Average cigarette pack price breakdown
Summary 2 Average Cigarette Pack Price Breakdown: Brand Examples

CATEGORY DATA

Table 1 Sales of Cigarettes: Volume 2013-2018
Table 2 Sales of Cigarettes by Category: Value 2013-2018
Table 3 Sales of Cigarettes: % Volume Growth 2013-2018
Table 4 Sales of Cigarettes by Category: % Value Growth 2013-2018
Table 5 Sales of Cigarettes by Blend: % Volume 2013-2018
Table 6 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2013-2018
Table 7 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
Table 8 Sales of Cigarettes by Pack Size: % Volume 2013-2018
Table 9 Sales of Cigarettes by Price Band: % Volume 2013-2018
Table 10 NBO Company Shares of Cigarettes: % Volume 2014-2018
Table 11 LBN Brand Shares of Cigarettes: % Volume 2015-2018
Table 12 Sales of Cigarettes by Distribution Format: % Volume 2013-2018
Table 13 Illicit Trade Estimate of Cigarettes: Volume 2013-2018
Table 14 Forecast Sales of Cigarettes: Volume 2018-2023
Table 15 Forecast Sales of Cigarettes by Category: Value 2018-2023
Table 16 Forecast Sales of Cigarettes: % Volume Growth 2018-2023
Table 17 Forecast Sales of Cigarettes by Category: % Value Growth 2018-2023
Table 18 Forecast Sales of Cigarettes by Blend: % Volume 2018-2023
Table 19 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2018-2023
Table 20 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2018-2023
Table 21 Forecast Sales of Cigarettes by Pack Size: % Volume 2018-2023
Table 22 Forecast Sales of Cigarettes by Price Band: % Volume 2018-2023

Tobacco in Georgia - Industry Overview

EXECUTIVE SUMMARY

Lower retail value growth for tobacco in 2018 as customer base declines
Companies exploit the different tax levels on filter and non-filter cigarettes
Philip Morris International retains its lead in cigarettes in 2018
Independent small grocers remains the leading distribution channel for cigarettes
Tobacco is set for retail value declines as smoking becomes too expensive for more people

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 3 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Tar levels
Health warnings
Plain packaging
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
E-vapour products

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 23 Number of Adult Smokers by Gender 2013-2018

MARKET DATA

Table 24 Sales of Tobacco by Category: Volume 2013-2018
Table 25 Sales of Tobacco by Category: Value 2013-2018
Table 26 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 27 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 28 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 29 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 30 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 31 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

SOURCES

Summary 4 Research Sources