COVID-19 had a positive impact on sales of cigarettes in Latvia in 2020 due to increased stress and boredom during the pandemic. People also had more time to smoke while staying at home, resulting in slower annual volume decline in the year.
Despite these benefits in 2020, challenges continue to negatively impact sales of cigarettes, including the escalating prices of cigarettes due to the increase in excise duties on cigarettes on 1 March 2020. Also, with the ban on menthol cigarettes in May 2020, some consumers quit smoking altogether.
Philip Morris Latvia SIA retained its lead of the competitive landscape and gained share in 2020, offering favourites such as Marlboro and L&M. Second-placed player, Baltic Sales Network Sia, the official representative of Japan Tobacco Inc, also continued to gain share due to the strong and stable positions of Winston and LD, with Winston being the favoured brand in the country.
Volume decline is expected in Slovenia in cigarettes over the forecast period as consumers are becoming more health-conscious and increasingly concerned about smoking-related health issues. Health concerns will be heightened in the wake of COVID-19 and should further motivate consumers to reconsider their smoking habit.
As the COVID-19 pandemic subsides and borders are opened, illicit trade is expected to be active again and will continue to be a threat across the forecast period, despite the tight controls Latvia has in place. In addition, the high cost of cigarettes and financial worries will encourage some consumers to go down the illicit trade route.
It is highly likely that the landscape will move towards consolidation over the forecast period after the display bans were put in place from October 2020. The tobacco displays ban will make launching new products and new brands extremely challenging.
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Understand the latest market trends and future growth opportunities for the Cigarettes industry in Latvia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
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This report originates from Passport, our Cigarettes research and analysis database.
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