Market

The tobacco market

The tobacco market and tobacco farming are highly regulated in all seven countries in the region, but the influence of different actors on the tobacco market depends on local circumstances. 

Tobacco farming

Tobacco is not traditionally grown widely in the region. The only exception is Macedonia, which has a long history and tradition of cultivating and exporting raw tobacco.

One of the key characteristics of all countries in the region is that production comes from small family farms. However, over the years the number of farms has been decreasing across the region, with the size of farms showing a slight increase.

While major decreases in raw tobacco farming occurred during the period from 2000-2010, which is not presented, data presented still reflects the decreasing trend in most countries of the region.

Tobacco yields (t)

Foreign Trade 

Trends in the volume of foreign trade of tobacco in the SEE region depend on the country. While the volume of imports has been increasing in Serbia, Macedonia, and Croatia, in other countries it has been declining. The volume of exports has significantly reduced in Croatia, while in other countries there has been no significant change since 2010

 Import of row tobacco (t)

Export of row tobacco (t)

 

  Albania B&H Croatia Kosovo Macedonia Montenegro Serbia
2010 1077 6481 9519 32 16587 24 6597
2011 928 6273 3273 0 21650 26 5494
2012 1127 5762 4733 21 22538 17 8039
2013 1206 4563 5136 1 25465 31 6471
2014 1659 4341 5879 26 23664 43 6441
2015 1288 4193 4889 0 22549 95 5991
2016 1537 4393 6462 0 27055 211 6894
2017 290 3919 8685 0 16587 138 7822

Manufacturing of tobacco products

A different set of factors shaped the trends in tobacco products manufacturing in the SEE region after 2000. Major domestic tobacco manufacturers were privatized, while international tobacco companies entered the market.

Annual Production of  Cigarettes  (mil sticks)

  Albania B&H Croatia Kosovo Macedonia Montenegro Serbia
2010 0 3733 13368 0 6826 108 21906
2011 0 3157 11827 0 7721 142 19985
2012 0 2546 11202 0 6573 535 18073
2013 0 1810 9445 0 6507 1186 17167
2014 0 1538 8191 0 5112 1206 17289
2015 0 1690 8223 0 4020 1096 27236
2016 0 1326 8342 0 3897 517 33931
2017 0 1083 9193 0 4100 0 37497

Large international tobacco companies have significantly expanded their production and sales in the SEE region. Locally-owned manufacturing companies have lost market share after multinationals entered the market and multinational brands replaced the domestic ones. Table 4 presents the major multinational companies in the region by country as manufacturers or importers/wholesalers.

Demand for tobacco products

Tobacco consumption including cigarettes, smokeless tobacco, and cigars, varies by country within the SEE region. Smoking prevalence rates in the region vary significantly, ranging from 28.7% in Albania, to 45.9% in Montenegro in 2016. In all countries in the region (except Kosovo) more than one quarter of the total population are daily smokers. However, a decreasing trend in prevalence is evident in all countries except Croatia.