In Latvia, smoking tobacco grew by a solid 10% in retail volume terms in 2015. The category is more often perceived as an alternative to cigarettes. As a result, in 2015 smoking tobacco, in particular RYO, benefited from another tax increase in cigarettes and declining sales of illicit cigarettes. Latvians are more used to smoking cigarettes and the high share of illegal cigarettes was a significant obstacle for smoking tobacco to benefit from increasing cigarette prices, as consumers chose to switch to illegal products rather than learning how to roll their own cigarettes. However, as the government became more effective at combating illegal trade, smoking tobacco started to gain sales. Another important factor is that RYO tobacco is mainly smoked by younger consumer groups, as they are less conservative in their preferences. In pipe tobacco, the situation is slightly different, as pipe smokers are commonly of an older age and the category is experiencing signs of maturity. In addition, pipe tobacco is more mature and usually not considered as an alternative to cigarettes; as a result, this category is experiencing a declining trend.
Baltic Sales Network Sia, which exclusively distributes for Japan Tobacco Inc, maintained its leadership of smoking tobacco with a retail volume share of 16% in 2015. The company benefited from the performance of its Winston brand. The company is one of the major players in cigarettes and has a very strong distribution network, benefiting from strong negotiation power, which secured the highest availability level for its Winston smoking tobacco. In addition to this, Winston recorded the strongest performance in cigarettes and is commonly chosen as a first choice when consumers decide to switch from cigarettes due to high brand awareness. In addition to this, Winston smoking tobacco is one of the cheapest products and benefits the most from price-sensitive consumers who search for cheaper cigarette alternatives. The two other large distributors of tobacco products are Rata 1 and Avalons SIA, both companies that cover a wide product assortment and distribute most other popular brands.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the 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 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.
This report originates from Passport, our 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 extract FREE! Home Page