Fine cut tobacco continued to grow in 2021 as a cheaper alternative to cigarettes during a time of increasing price-conscious behaviour when trading down from expensive cigarettes to fine cut smoking tobacco was evident. Sales of smoking tobacco benefited further from a restricted access to illicit trade due to tighter border control.
Cigars remains a niche category in Latvia. On the contrary, cigarillos, which enjoy a lower excise tax rate compared to cigarettes, recorded double-digit volume growth in the year as cigarette smokers opted for lower priced cigarillos instead, with rising financial concerns impacting their smoking habits.
Philip Morris Latvia SIA remained the dominant player in cigarillos in 2021. Across the review period, the player increased the presence of its cigarillos on the shelves of larger supermarkets such as Rimi, which previously did not offer a wide range of cigarillos.
Cigars and cigarillos are expected to shrink over the forecast period due to the general health and wellness trend, which has gained ground in Latvia, with consumers smoking less, or migrating to alternative products, including e-vapour products and heated tobacco, which many consumers believe to be less damaging to their health. This is particularly so as health concerns were heightened in Latvia after the outbreak of COVID-19, which specifically focused on respiratory issues.
Fine cut tobacco, meanwhile, is set to record positive forecast growth as increased price-conscious behaviour will see consumers switching from cigarettes, which is the most tax-affected category. Excise tax is applied per kilo to smoking tobacco, which makes the final retail cost per portion sold much more affordable than cigarettes.
Pipe tobacco contains several established brands, such as Peterson’s, Mac Baren and Alsbo, which together accounted for over half of total retail volume sales in 2021, therefore small players have little incentive to enter the landscape. Additionally, the consumer base, predominantly older individuals, are less prone to trying out new flavours and products, preferencing particular brands that they have supported across the year.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Understand the latest market trends and future growth opportunities for the Cigars, Cigarillos and Smoking Tobacco industry in Latvia with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Cigars, Cigarillos and Smoking Tobacco industry in Latvia, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
Cigars, Cigarillos and Smoking Tobacco
This report originates from Passport, our Cigars, Cigarillos and Smoking Tobacco research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!