Executive Summary

Jul 2019
PROSPECTS
Cigarette volume sales continue to fall due to rising prices and switch to illicit fine cut tobacco

In 2018, retail volume sales of cigarettes continued to decline, with the category having been on a downward trajectory for several years. However, the category’s volume contraction in 2018 was stronger than the decline in smoking prevalence, which suggests that other factors are at play.

Cigarette production and exports set to increase following Philip Morris and JT International’s investment in new manufacturing lines

Cigarette manufacturing in Serbia increased early in the review period as multinational producers made the country one of their most important regional hubs due to its relatively low taxes. However, production and exports declined in 2018.

Modern grocery retailers slowly gain share as consumers change their shopping habits and Lidl arrives on the scene

Although the cigarette distribution landscape saw no major changes in 2018, over the course of the review period, the leading traditional retailers in the category, such as independent small grocers and newsagents-tobacconists/kiosks, suffered a slow decline in volume share, mainly in favour of discounters and supermarkets. This can be attributed to the ongoing modernisation of retailing in Serbia.

COMPETITIVE LANDSCAPE
Philip Morris continues to benefit from the launch of low-priced L&M Loft

Philip Morris continued to rank first in cigarettes in 2018, commanding a clear lead over British American Tobacco, which itself overtook JT International to claim second position. The category remained largely in the hands of multinationals, with only a few local players present, with the most prominent being Monus.

British American Tobacco invests in Pall Mall marketing activities to gain share

The best performing cigarette manufacturer in 2018, however, was British American Tobacco, which registered an even stronger increase in retail volume share than Philip Morris thanks to its Pall Mall brand achieving a double-digit increase in sales. In fact, Pall Mall became the leading cigarette brand in Serbia in 2018, overtaking Marlboro, largely as a result of British American Tobacco’s heavy investment in marketing, primarily point-of-sale promotions, with these appealing to consumers looking to save money, especially in light of rising cigarette prices as a result of ongoing tax hikes.

Manufacturers continue to rationalise their product portfolios

Various brands have disappeared from the Serbian marketplace in recent years, with this likely to continue over the forecast period as multinationals look to replace traditional brands with international ones. Brands which were no longer available in 2018 included Best (Philip Morris), Opposite (Monus), MC, Walter Wolf and York (Rovita), Memphis (JT International) and Vision (British American Tobacco).

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Cigarettes in Serbia

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Overview

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

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

HEADLINES

PROSPECTS

Cigarette volume sales continue to fall due to rising prices and switch to illicit fine cut tobacco
Cigarette production and exports set to increase following Philip Morris and JT International’s investment in new manufacturing lines
Modern grocery retailers slowly gain share as consumers change their shopping habits and Lidl arrives on the scene

COMPETITIVE LANDSCAPE

Philip Morris continues to benefit from the launch of low-priced L&M Loft
British American Tobacco invests in Pall Mall marketing activities to gain share
Manufacturers continue to rationalise their product portfolios

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 Serbia - Industry Overview

EXECUTIVE SUMMARY

Cigarette sales continue to fall due to the popularity of illicit fine cut tobacco and increasing taxation
British American Tobacco enters heated tobacco and puts pressure on Philip Morris
British American Tobacco narrows gap at the top within cigarettes through heavy marketing investment
Distribution landscape remains fairly stable, although discounters gain share in cigarettes as Lidl enters Serbia
Cigarettes to suffer over forecast period due to growing health consciousness and rising retail prices, resulting in other categories performing well

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