Executive Summary

Jul 2019
PROSPECTS
Fine cut tobacco remains the best performer, but stronger sales hampered by those of illicit trade

In 2018, fine cut tobacco was once again the best performing category in cigars, cigarillos and smoking tobacco in retail volume terms, with this having been the case since 2016. However, illicit fine cut tobacco continued to pose a serious threat to legal sales, with many smokers, both of cigarettes and legal fine cut tobacco, increasingly resorting to illegal sources in order to save money as a result of rising tobacco prices due to tax hikes.

Cigarillos continues to outperform cigars due to improved distribution and changing consumer habits

After several years in which cigars consistently posted stronger retail volume growth than cigarillos, in 2017, the situation was reversed, with cigarillos remaining the best performer in 2018. The poor performance of cigarillos earlier in the review period was mainly down to a heavy decline in sales of non-filter/non-flavoured cigarillos.

Shift to grocery retailers to boost sales of cigars and cigarillos over the forecast period

In 2018, traditional tobacco specialists remained the leading distribution channel for cigars and cigarillos in Serbia, accounting for more than two thirds of overall retail volume sales. However, these products are benefiting from a wider presence in newsagent-tobacconists/kiosks in particular and are increasingly sold through modern grocery retailers such as supermarkets.

COMPETITIVE LANDSCAPE
British American Tobacco’s share is significantly boosted by Pall Mall, but Imperial Tobacco still leads

In 2018, thanks primarily to the strength of its Drum brand, Imperial Tobacco remained the clear leader in fine cut tobacco. Despite the company performing well in 2018 thanks to both Drum and also its Golden Virginia brand, it was significantly outperformed by British American Tobacco in percentage terms.

Various fine cut tobacco brands disappear from the marketplace

The range of fine cut tobacco brands available in Serbia continued to change in 2018 as several disappeared from the marketplace, benefitting well-established brands such as Drum, which was consistently available and was believed to be of superior quality. Indeed, many brands were introduced over the review period only to be discontinued after several years due to lack of success.

Dannemann Cigarrenfabrik continues to dominate cigarillos but is outperformed by lesser-known players such as Arnold André Cigars

In 2018, cigarillos remained a stronghold for Dannemann Cigarrenfabrik, which continued to dominate sales through its popular Dannemann Moods brand. However, the company did not perform anywhere near as well as some of its rivals, including Scandinavian Tobacco Group, Villiger Söhne and Arnold André Cigars, all of which registered double-digit volume sales growth compared to the modest increase posted by Dannemann Cigarrenfabrik, albeit still commanding much lower shares.

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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 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 Cigars, Cigarillos and Smoking Tobacco industry in Serbia, our research will save you time and money while empowering you to make informed, profitable decisions.

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

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:

Tobacco market research database

Cigars, Cigarillos and Smoking Tobacco in Serbia - Category analysis

HEADLINES

PROSPECTS

Fine cut tobacco remains the best performer, but stronger sales hampered by those of illicit trade
Cigarillos continues to outperform cigars due to improved distribution and changing consumer habits
Shift to grocery retailers to boost sales of cigars and cigarillos over the forecast period

COMPETITIVE LANDSCAPE

British American Tobacco’s share is significantly boosted by Pall Mall, but Imperial Tobacco still leads
Various fine cut tobacco brands disappear from the marketplace
Dannemann Cigarrenfabrik continues to dominate cigarillos but is outperformed by lesser-known players such as Arnold André Cigars

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 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 1 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 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

SOURCES

Summary 2 Research Sources