Executive Summary

Jul 2019
PROSPECTS
Strong excise tax hikes lead to huge fall in volume sales

The high excise tax applied to cigars and cigarillos has had a further negative impact on the category, but mostly on sales of cigarillos. In 2018, specific excise for cigars and cigarillos rose by more than a quarter from the previous year.

Smoking tobacco benefits from cigarette consumers seeking cheaper tobacco

Fine cut tobacco posted the strongest volume growth in the overall category in 2018. Specific excise is applied per kilo to smoking tobacco, which makes the final retail cost per portion sold more affordable than cigarettes and cigarillos.

While volume sales performances will remain poor, flavours offer a ray of hope

Tobacco in general faces many challenges over the forecast period. In addition to Latvia’s depopulation and the stricter display ban likely to be introduced, the pursuit of healthier lifestyles will make smoking less common, while continual and high taxation will continue making smoking unaffordable for many.

COMPETITIVE LANDSCAPE
Al Capone cigarillos benefit from expansion, while Orion Tobacco capitalises on growth in fine cut tobacco

Despite steep falls in volume sales of cigarillos, the Al Capone brand has become more popular in the category, achieving high growth in both sales and share in 2018. Its portfolio for Latvia was further expanded in the year, with the addition of compact Pockets Flame, Pockets Original and Pockets Filter Red Blend, as well as larger Al Capone cigarillos.

Cigars players suffer effects of steep excise hike

Within cigars, Romeo y Julieta from Corporación Habanos SA remained the leading brand over the review period, followed by the Cohiba and Partagás brands, also owned by Habanos. However, cigars as a whole experienced a significant volume sales decline in 2017-2018 following a considerable excise tax hike, with Habanos taking most of the hit as the dominant player.

Pipe tobacco needs to modernise to compete

The recently implemented increases in excise tax and proposals regarding tobacco product displays make pipe tobacco an unattractive category for new entrants. Although it recorded volume sales growth in 2018, this was mostly due to other categories such as cigarettes and cigarillos experiencing higher taxation and resulting hikes in prices, making pipe tobacco a more affordable alternative.

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Overview

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

The Cigars, Cigarillos and Smoking Tobacco in Latvia 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  
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as: 

  • What is the market size of Cigars, Cigarillos and Smoking Tobacco in Latvia?
  • What are the major brands in Latvia?
  • What are the main distribution channels for cigars in Latvia and which are performing well?
  • What is the proportion of hand-made versus machine manufactured cigars in Latvia?

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  • Track key industry trends, opportunities and threats
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This industry report originates from Passport:

Tobacco market research database

Cigars, Cigarillos and Smoking Tobacco in Latvia - Category analysis

HEADLINES

PROSPECTS

Strong excise tax hikes lead to huge fall in volume sales
Smoking tobacco benefits from cigarette consumers seeking cheaper tobacco
While volume sales performances will remain poor, flavours offer a ray of hope

COMPETITIVE LANDSCAPE

Al Capone cigarillos benefit from expansion, while Orion Tobacco capitalises on growth in fine cut tobacco
Cigars players suffer effects of steep excise hike
Pipe tobacco needs to modernise to compete

CATEGORY DATA

Table 1 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2013-2018
Table 2 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2013-2018
Table 3 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2013-2018
Table 4 Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2013-2018
Table 5 Sales of Cigars by Size: % Volume 2013-2018
Table 6 Sales of Cigarillos by Price Platform 2013-2018
Table 7 NBO Company Shares of Cigars and Cigarillos: % Volume 2014-2018
Table 8 LBN Brand Shares of Cigars and Cigarillos: % Volume 2015-2018
Table 9 NBO Company Shares of Cigars: % Volume 2014-2018
Table 10 LBN Brand Shares of Cigars: % Volume 2015-2018
Table 11 NBO Company Shares of Cigarillos: % Volume 2014-2018
Table 12 LBN Brand Shares of Cigarillos: % Volume 2015-2018
Table 13 NBO Company Shares of Smoking Tobacco: % Volume 2014-2018
Table 14 LBN Brand Shares of Smoking Tobacco: % Volume 2015-2018
Table 15 NBO Company Shares of Pipe Tobacco: % Volume 2014-2018
Table 16 LBN Brand Shares of Pipe Tobacco: % Volume 2015-2018
Table 17 NBO Company Shares of Fine Cut Tobacco: % Volume 2014-2018
Table 18 LBN Brand Shares of Fine Cut Tobacco: % Volume 2015-2018
Table 19 Distribution of Cigars and Cigarillos by Format: % Volume 2013-2018
Table 20 Distribution of Smoking Tobacco by Format: % Volume 2013-2018
Table 21 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Volume 2018-2023
Table 22 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: Value 2018-2023
Table 23 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Volume Growth 2018-2023
Table 24 Forecast Sales of Cigars, Cigarillos and Smoking Tobacco by Category: % Value Growth 2018-2023

Tobacco in Latvia - Industry Overview

EXECUTIVE SUMMARY

Traditional tobacco faces uphill battle as smoking becomes more expensive and smokers migrate for health reasons
Tobacco evolves with the introduction of Iqos
Premium cigarettes gain share as disposable incomes rise, while new POS display ban means only strongest brands will survive
Specialist outlets proliferate, often with a highly niche focus
Cigarettes set for decline as tobacco laws tighten

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 1 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Tar levels
Plain packaging
Advertising and sponsorship
Advertising through media (television, radio, billboards, consumer press, trade press, cinema etc)
Advertising through retail point of sale
Sponsorship of sporting/music events
Distribution of tobacco-branded gifts (cigarette-branded lighters, pens etc)
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) cigarette regulation
Flavoured tobacco product ban
Reduced harm
E-vapour products

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 25 Number of Adult Smokers by Gender 2013-2018

MARKET DATA

Table 26 Sales of Tobacco by Category: Volume 2013-2018
Table 27 Sales of Tobacco by Category: Value 2013-2018
Table 28 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 29 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 30 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 31 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 32 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 33 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 2 Research Sources