Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Slovenia

2021 DEVELOPMENTS

Heated tobacco remains the largest product area as consumers shift from cigarettes

Heated tobacco continued to grow in 2021. Consumers have responded positively to the product, with many seeing it as a compromise between smoking and adapting a habit that better benefits their health.

E-vapour products takes a hit as trend subsides and health concerns rise

Following a poor performance in 2020, e-vapour products registered a double-digit decline in retail current value sales in 2021 as the trend for products in this area has come to an end. The popularity of this product area peaked in the 2014 to 2018 period, but sales have quickly fallen away since then.

Smokeless tobacco remains niche as advertising bans limit exposure

Consumers remained generally unfamiliar with smokeless tobacco products in Slovenia in 2021, and thus remained negligible following a failure to register significant sales since the beginning of the review period. With point-of-sale bans and general advertising bans, players such as Swedish Match (ZYN brand) operating in this market face difficulty in amassing a consumer base.

PROSPECTS AND OPPORTUNITIES

Heated tobacco to remain primary growth driver in the category

Over the forecast period, heated tobacco products and devices will continue to register strong retail volume and value growth. New players are expected to emerge in this positively performing category in the coming years, providing competition for Philip Morris Ljubljana doo.

Open vaping systems continues its downwards spiral

Open vaping systems is projected to continue its downwards trajectory over the forecast period, with continuously declining retail current value sales as the product area becomes increasingly niche in Slovenia. Mainstream consumers will continue to migrate from open vaping systems to heated tobacco or closed vaping systems over the forecast period as consumers seek novelty and products that are considered to be healthier alternatives to other tobacco products.

Potential for the expansion of closed vaping systems

Closed vaping systems such as Wiip emerged in Slovenian tobacco over the review period, and there is the potential for this product to gain some traction over the forecast period as consumers become more suspicious of open vaping systems. The category could serve as an alternative for consumers who wish to steer clear of traditional tobacco products but who are not attracted to the DIY nature of open vaping systems.