Tobacco in 2024: The big picture
In 2024, the Romanian tobacco market navigated a complex environment marked by economic pressure, evolving consumer behaviours and tightening regulation. The category faced declining volume sales, although rising prices helped sustain value growth. Cigarettes continued to dominate overall consumption but experienced further contraction as smokers explored alternative products or reduced usage altogether. Heated tobacco emerged as the most dynamic segment, buoyed by perceptions of lower health risks and sustained investment in product innovation and marketing. Meanwhile, the return of illicit trade and the growing popularity of economy and private label brands reflected the broader impact of constrained purchasing power and economic polarisation across Romanian society.
2024 key trends
Volume sales of tobacco declined in 2024, while value sales rose. Despite the presence of over four million smokers in Romania, reduced disposable income and higher unit prices contributed to weaker volume performance. At the same time, a trend toward premiumisation persisted, with many consumers seeking higher-quality products, including alternatives perceived to be less harmful. However, economic uncertainty also widened the gap between consumer groups, with economy brands gaining traction among price-sensitive smokers.
Competitive landscape
British American Tobacco Romania SRL continued to lead the tobacco market in 2024, supported by a broad and well-established brand portfolio spanning multiple categories. Brands such as Kent, Pall Mall, Lucky Strike, Glo and Neo remain widely recognised among Romanian consumers, helping the company retain a strong presence across both traditional and newer product types. However, BAT experienced a slight erosion of its volume share during the year, a trend linked to shifting consumer behaviours, particularly the ongoing decline in cigarette consumption. As more Romanians seek reduced-risk alternatives or cut down on smoking altogether, the company's dominance in conventional formats has become more vulnerable to emerging competition.
Retail developments
Small local grocers continued to lead tobacco distribution in 2024, holding the majority share of volume sales despite a decline from the previous year. Their strong presence in rural and suburban areas, as well as their adaptability to category shifts such as offering heated tobacco products kept them central to the retail landscape.
What next for tobacco?
Tobacco sales in Romania are expected to record modest growth over the forecast period, although volume gains are likely to remain limited. Economic headwinds including persistent inflation, rising excise duties, and anticipated austerity measures are set to constrain household purchasing power and place downward pressure on consumption. Given Romania’s widening budget deficit, the government is likely to implement additional fiscal tightening, potentially including new levies on tobacco or increases in existing taxes such as VAT. Such changes would translate into higher retail prices, which may prompt more consumers to cut back or seek cheaper alternatives. Further legislative measures, such as expanded smoking bans in public spaces, may also act as deterrents and accelerate the gradual decline of traditional tobacco products.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Romania 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.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Cigarettes
- Cigars, Cigarillos and Smoking Tobacco
- Smokeless Tobacco, E-Vapour Products and Heated Tobacco
If you're in the Tobacco industry in Romania, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Tobacco in Romania report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Tobacco in Romania?
- Which are the leading brands in Tobacco in Romania?
- How are products distributed in Tobacco in Romania?
- Which category is the most heavily taxed in Romania?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Romania?
- How has COVID-19 impacted demand?
- How have national lockdown and enforced home seclusion following COVID-19 impacted sales?
- Where is future growth expected to be most dynamic?
Tobacco in Romania
Tobacco in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
What next for tobacco?
Legislation
Legislative overview
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
Reduced harm
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Romania
KEY DATA FINDINGS
Illicit cigarette sales rebound as affordability pressures mount
British American Tobacco retains leadership, but new players gain ground
Discounters gain momentum as affordability shapes distribution trends
Illicit sales expected to decline as enforcement efforts intensify
Economy brands and private label poised to benefit from economic volatility
Innovation and e-commerce to shape future engagement
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Romania
KEY DATA FINDINGS
Volume growth sustained by a loyal and niche consumer base
Scandinavian Tobacco Group A/S retains leadership in both categories
Specialist retailers remain the primary sales channel
Favourable forecast for cigars, cigarillos and smoking tobacco
Economic uncertainty may weigh on consumer demand
Innovation and sustainability to drive future growth
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Romania
KEY DATA FINDINGS
Heated tobacco consolidates its lead as e-vapour gains moderate ground
Philip Morris remains a key player in heated tobacco innovation
Specialist channels dominate distribution, but modern retail gains ground
Combustion-free alternatives set to gain further traction
Regulatory uncertainty and austerity pose headwinds
Innovation and digitalisation to shape the future landscape
The following categories and subcategories are included:
Tobacco
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- Fine Cut Cigarettes
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- Cigarettes (Illicit+Legal)
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- Cigars
- Cigarillos
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- Pipe Tobacco
- Fine Cut Tobacco
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- Chewing Tobacco
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- Loose US-Style Moist Snuff
- Portion US-Style Moist Snuff
- Swedish-Style Snus
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- Closed System Single Use
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- Closed System Rechargeable (including starter kits)
- Closed System Cartridges
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- Open Vaping Systems Charging and Vapourising Devices
- E-liquids
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- Tobacco Heating Devices
- Heated Tobacco
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- Nicotine Pouches
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- Closed System Single Use (Illicit+Legal)
- Closed System Cartridges (Illicit+Legal)
- E-Liquids (Illicit+Legal)
Tobacco
Passport Tobacco covers the seven major tobacco categories: Cigarettes, Cigars & Cigarillos, Smoking tobacco (made up of Pipe tobacco and RYO tobacco), Smokeless Tobacco (snuff and chewing tobacco), E-Vapour Products (closed and open); Heated Tobacco; and Tobacco Free Oral Nicotine. Smoking paraphernalia such as pipes, rolling papers, lighters or matches, etc., are not included, nor are nicotine replacement therapy (NRT) products, which are part of Euromonitor's Passport Consumer Healthcare database.
See all of our definitionsWhy buy this report?
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This report originates from Passport, our Tobacco research and analysis database.
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