In 2020, cigars, cigarillos and smoking tobacco will perform well in response to the COVID-19 pandemic as current value sales rise notably. The pandemic has been having little impact on the product area in health terms, but declining incomes related to COVID-19 are boosting sales of more affordable products such as smoking tobacco and cigarillos.
Despite the high excise tax on smoking tobacco and thus the associated price increases, the product still offers a more economical variant than traditional cigarettes. Furthermore, there are many economy brands of smoking tobacco available, which helps support the ongoing growth of this popular product.
Manifatture Sigaro Toscano SpA will continue to lead cigars and cigarillos in 2020, with no new entries or players present. Cigars and cigarillos will remain dominated by international specialists in the format, also including Arnold André Cigars GmbH & Co KG and The Burger Group, in second and third places.
After performing well in response to the COVID-19 pandemic, cigars, cigarillos and smoking tobacco will see slowed current value growth. This comes as no surprise as the performance witnessed in 2020 was artificially boosted and therefore as normalisation occurs, growth will slow down.
Over the forecast period, the main threat to smoking tobacco comes from increasing excise taxes and declining incomes, which mean smokers are more inclined to purchase smoking tobacco through illicit channels. Therefore, the main recovery opportunities are controlled by the government in Bosnia-Herzegovina, as only lowering or stabilising excise taxes will promote the growth in smoking tobacco.
There is good scope for growth within cigars and cigarillos, as they are currently exempt from the excise tax hikes seen in other tobacco product areas. Whilst cigars is niche and therefore holds a smaller space for opportunities, cigarillos has much greater scope for developments and growth.
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Understand the latest market trends and future growth opportunities for the Cigars, Cigarillos and Smoking Tobacco industry in Bosnia and Herzegovina 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 Cigars, Cigarillos and Smoking Tobacco research and analysis database.
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