Executive Summary

Jul 2019
PROSPECTS
Cigarette volume sales continue to fall only slowly but a stronger annual decline is expected over the forecast period

In 2018, cigarettes posted a further modest decline in retail volume sales, continuing the trend seen over the previous three years. This can be attributed to a number of factors, including a drop in smoking prevalence, particularly among men, with female smoking prevalence remaining largely unchanged.

A stronger contraction for the category is, however, anticipated over the forecast period.

Firstly, excise tax is expected to continue to rise at an annual rate of 2% in order to harmonise prices with those in other EU countries, which should also serve to reduce smuggling from Romania.

Illicit trade increases slightly in 2018

Despite numerous measures taken by the authorities, illicit trade continued to account for a double-digit share of cigarette retail volume sales in Romania in 2018. While in 2016 and 2017 illicit trade recorded a solid decline, in 2018 it rose slightly, partly as a result of increasing prices due to ongoing hikes in excise tax.

Internet retailing and modern grocery retailers the fastest growing distribution channels

Although cigarette regulations are becoming increasingly restrictive in Romania as the government aligns its legislation with EU directives, an interesting trend is being seen in terms of distribution. Modern grocery retailers, such as discounters, hypermarkets and supermarkets, are expanding across the country, with this helping them to record strong volume sales growth in cigarettes in 2018.

COMPETITIVE LANDSCAPE
British American Tobacco remains the clear leader in cigarettes through its popular Kent brand

Three multinationals together continued to dominate cigarettes in Romania in 2018. British American Tobacco remained the clear leader with nearly a half of overall volume sales, followed by Philip Morris and then JT International.

Philip Morris increasingly focusing on heated tobacco as the future of the industry

Second-ranked Philip Morris continued to slowly lose share in 2018. The company’s position can be attributed to the strength of brands such as Marlboro and L&M, while it also offers less popular brands in Romania such as Parliament, Assos, Chesterfield and Virginia Slims.

JT International maintains its focus on the mid-priced and economy segments

JT International, the local subsidiary of Japan Tobacco, continued to focus its efforts on the economy and mid- priced segments in 2018, with this reflected in the popularity of its Winchester and Winston brands. This approach helped to consolidate its position in Romanian cigarettes, especially after the 1990s, when the only cigarettes available were the unfiltered brand Carpati.

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Cigarettes in Romania

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Overview

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

The Cigarettes in Romania 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 Romania?
  • What are the major brands in Romania?
  • What is the legislative environment like in Romania?
  • What are the rates of cigarette taxation in Romania?
  • Do premium, mid-price or economy cigarettes dominate in Romania?
  • What is the rate of illicit trade in Romania?
  • 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 Romania - Category analysis

HEADLINES

PROSPECTS

Cigarette volume sales continue to fall only slowly but a stronger annual decline is expected over the forecast period
A stronger contraction for the category is, however, anticipated over the forecast period.
Illicit trade increases slightly in 2018
Internet retailing and modern grocery retailers the fastest growing distribution channels

COMPETITIVE LANDSCAPE

British American Tobacco remains the clear leader in cigarettes through its popular Kent brand
Philip Morris increasingly focusing on heated tobacco as the future of the industry
JT International maintains its focus on the mid-priced and economy segments

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 Romania - Industry Overview

EXECUTIVE SUMMARY

Cigarette volume sales continue to fall steadily while all other traditional categories post positive results
Cigarettes continue to be heavily marketed while consumers are also becoming increasingly attracted to heated tobacco
Three multinationals dominate cigarettes while e-vapour products remains fragmented
Grocery retailers lead cigarette sales but independent small grocers and newsagent-tobacconists/kiosks lose ground to supermarkets and tobacco specialists
Decline in cigarette volume sales set to accelerate over the forecast period

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
Flavoured tobacco product ban
Reduced harm
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