Consumption of cigarettes declined in 2020 in volume terms. Sales were most affected by the closure of the country’s borders, which were fully closed in the spring and partially closed in the autumn and winter of 2020.
Menthol flavoured cigarettes and menthol capsules were banned under EU regulation from May 2020. As a result, cigarette smokers who strongly prefer menthol flavour over tobacco flavour switched to e-vapour products and heated tobacco.
The value sales of cigarettes experienced a mild contraction in 2020. In addition to diminished purchasing power since the onset of the pandemic, the taxation factor was especially significant given the continual hikes in cigarette excise tax in the review period, with a further one implemented from March 2020.
Retail volume sales of cigarettes are expected to continue declining in 2021 and throughout the remainder of the forecast period. The excise tax on tobacco products increased again in 2021 with the government planning to increase this further in 2022 and 2023.
The number of illicit cigarettes dropped in 2020 as the closure of the country’s borders designed to halt virus transmission also brought an end to smuggling. As the pandemic, recedes and vaccines are rolled out, the opening of the borders is expected to lead to a gradual return of Illicit trade.
In response to a combination of regular tax increases and projected weaker purchasing power in the Czech Republic, economy brands such as RGD by Philip Morris and Moon and West by Imperial Tobacco and mid-priced brands such as Rothmans by British American Tobacco, Benson & Hedges and Winston by JTI are expected to gain ground. This will be to the detriment of premium brands such as Marlboro Gold by Philip Morris and Davidoff by Imperial Tobacco.
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Understand the latest market trends and future growth opportunities for the Cigarettes industry in Czech Republic 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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