Falling Consumption of Cigarettes in Bulgaria: Ken Research

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Falling Consumption of Cigarettes in Bulgaria
Ken Research
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Ken research announced recent publication on,
"Cigarettes in Bulgaria, 2017". The report gives
a detailed understanding of consumption to align
your sales and marketing efforts with the latest
trends in the market. Identify the areas of
growth and opportunities, which will aid
effective marketing planning. The differing
growth rates in regional product sales drive
fundamental shifts in the market. This report
provides detailed, authoritative data on this
changes-prime intelligence for marketers.
Understand the market dynamics and essential data
to benchmark your position and to identify where
to compete in the future.
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• Bulgaria has traditionally had one of the highest
  rates of per capita cigarette consumption.
  However, the collapse of the duty paid sector
  since 2009 and the consequent rise in contraband
  reduced legitimate consumption levels. There has
  been a trend away from traditional oriental or
  semi-oriental blends towards American blend and
  Virginia cigarettes, because of changing consumer
  tastes and the influx of imported international
  brands. The true size of the cigarette market and
  trends in consumption levels had once been
  extremely difficult to determine accurately due
  to black market activities, with the overall
  market size fluctuating according to the
  affordability of local products and volumes of
  contraband. There is also a movement towards
  lighter tastes, particularly towards slim and,
  latterly, super slim cigarettes.
• Bulgaria ranks as one of the medium sized
  cigarette markets of Central and Eastern Europe
  and is now an EU member country. It was once a
  major cigarette producer due to the very
  substantial export trade that the local tobacco
  industry developed during the communist years.
  However, this declined during the 1990s and the
  country effectively became a self-sufficient
  producer with minimal imports and erratic and
  opportunistic exports.

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Bulgaria will return to a higher timetable for
the excise tax on cigarettes in a gradual manner
by the beginning of 2018. However, one of the
reasons for the step is the "aggressive
behaviour" shown by some of the traders in
tobacco products threatening the entire market.
At the end of 2014 and during the first half of
2015 the Bulgarian government decided to impose
stricter controls on the factories and excise
warehouses which distribute falling
significantly. The Bulgarian cigaretcigarettes to
the local market. State inspectors were put at
the exit points of all factories and warehouses
and were charged with checking the cargo of all
personal vehicles and the luggage of all people
leaving the buildings. As a result of this strict
control, much larger quantities of cigarettes
were officially declared and taxed in 2015 than a
year earlier, with illicit sales of cigarettes
without banderoles te industry is fairly
consolidated, with only seven manufacturers
having a measurable share of sales. The situation
in 2015, however, was very different from the
beginning of the review period, when the category
was almost entirely dominated by Bulgartabac
Holding Group, whose monopoly was abolished by
the Bulgarian parliament at the beginning of
2005.
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In 2015, Bulgartabac managed to recover some of
its lost sales and increased its volume share,
mostly at the expense of its direct competitor
Philip Morris. This will result in a
"sustainable" increase in prices of cigarettes by
January 01, 2018. Soon Bulgaria will be obliged
to introduce the minimum EU excise tax on
cigarettes, which is EUR 90 per 1000 pieces. This
means prices will go up again as of January 01,
2018. More expensive cigarette brands will be
affected by BGN 0.15, while for a pack of more
affordable ones the increase will be around BGN
0.10. The overall increase in the sale price
would be around BGN 0.20-30 by the end of 2017.
The current tax is BGN 70 per 100 pieces, plus
38 of the sale price, but its minimum total
value is BGN 161 per 1000. A new timetable for
the increase, if adopted, would see a more abrupt
increase in the specific tax and a lower ad
valorem excise duty, with a minimum threshold of
BGN 168.
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The "new timetable" was renounced last year in
favour of the current one, with critics of the
move then arguing it would give an edge to two
local cigarette producers. They also insisted EU
practices suggested the specific tax - and not
the ad valorem duty - should be increased when
modifying the excise to base state revenues on
the amount of cigarettes sold and not on their
market price. Law enforcement authorities in
Madrid and Sofia have unveiled details of a bust
some days ago in which 20 Bulgarian citizens,
were arrested in connection with three illegal
factories illicitly producing millions of euro
worth of cigarettes. The cigarettes were made for
sale in European Union countries, mainly Belgium,
France and the United Kingdom. Key Factors
Considered in the Report Cigarettes Market
Bulgaria Cigarette Market Consumption
Bulgaria Global Cigarette Production
Volume Bulgaria Cigarette Market Future Outlook
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Cigarette Advertisement Expenditure
Bulgaria Bulgaria Cigarette Export
Volume Bulgaria Cigarette Import Volume Bulgaria
Tobacco Market Future Outlook For more coverage
click on the link below https//www.kenresearch.c
om/food-beverage-and-tobacco/tobacco-products/ciga
rettes-bulgaria-2017/79692-11.html Related
links https//www.kenresearch.com/food-beverage-
and-tobacco/tobacco-products/smokeless-tobacco-fra
nce-2017/82337-11.html https//www.kenresearch.co
m/food-beverage-and-tobacco/tobacco-products/smoke
less-tobacco-finland-2017/82334-11.html
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Contact Us Ken Research Ankur Gupta, Head
Marketing Communications Ankur_at_kenresearch.com
91-9015378249