Tobacco in 2024: The big picture
Tobacco consumption in Serbia continued to shift in 2024, shaped by declining smoking prevalence, rising economic pressures, and a growing appetite for alternative nicotine products. The legal smoking population is gradually shrinking, and societal attitudes toward smoking are becoming more negative, particularly among younger generations. These shifts are translating into ongoing volume declines in cigarettes, as consumers either reduce their tobacco intake or explore perceived lower-risk alternatives.
2024 key trends
Retail volume sales of tobacco rose in 2024, largely due to the strong performance of reduced-risk products, such as e-vapour items and heated tobacco sticks, while value sales also increased, reflecting consumers’ growing interest in premium alternatives and the impact of rising unit prices. Traditional categories like cigars, cigarillos, and smoking tobacco also contributed positively to overall tobacco volume growth, balancing the ongoing decline in cigarettes. Despite a shrinking population of traditional smokers, the industry as a whole continues to evolve, underpinned by the rapid adoption of newer nicotine delivery formats and a diversification of consumer habits.
Competitive landscape
Philip Morris International Inc. was the leading company within tobacco overall in 2024. The company produces Marlboro, Chesterfield, and IQOS, present in the cigarettes and heated tobacco categories. PMI’s continued leadership is underpinned by its extensive product portfolio, which spans all price tiers – economy, mid-range, and premium – allowing it to reach a broad spectrum of consumers. Marlboro remains one of the most recognisable cigarette brands globally, while Chesterfield has gained traction among value-conscious smokers in Serbia. In addition to its traditional tobacco portfolio, PMI has cemented its dominance in the heated tobacco space through the IQOS system and its associated consumables. Strategic investments in local manufacturing and product innovation, such as the introduction of IQOS ILUMA and TEREA sticks, have allowed the company to maintain market relevance in the face of shifting consumer preferences and growing demand for smoke-free alternatives.
Retail developments
Local grocery stores were the leading distribution channel within tobacco overall in 2024. These stores remain central to tobacco sales, particularly in rural and underserved areas where modern retail formats such as supermarkets and convenience stores have yet to fully expand. Local grocers meet the everyday needs of nearby residents, offering easy access to essential goods including tobacco. Their ability to cater to local preferences, combined with the familiarity and trust they foster within their communities, helps them retain a loyal customer base. As a result, despite the expansion of modern retail across urban areas, small local outlets continue to play a crucial role in sustaining tobacco sales in Serbia.
What next for tobacco?
Sales of tobacco are set to decline over the forecast period. This is primarily due to the ongoing reduction in cigarette consumption, driven by a shrinking smoking population and increasingly stringent regulations. Rising tobacco prices, fuelled by excise tax hikes, will make products less affordable, especially for younger and lower-income consumers. Public health campaigns and greater awareness of smoking-related risks are also expected to play a role in shaping more cautious consumption patterns. As a result, total tobacco volume sales are projected to fall steadily through to 2029.
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Overview:
Understand the latest market trends and future growth opportunities for the Tobacco industry in Serbia 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 Serbia, 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 Serbia 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 Serbia?
- Which are the leading brands in Tobacco in Serbia?
- How are products distributed in Tobacco in Serbia?
- Which category is the most heavily taxed in Serbia?
- How is the operating environment for Tobacco changing?
- What are the current legislative restrictions applicable to the sale of Tobacco products in Serbia?
- 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 Serbia
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
Vapour products
PRODUCTION/IMPORTS/EXPORTS
DISCLAIMER
Cigarettes in Serbia
KEY DATA FINDINGS
Declining cigarette consumption reflects shifting attitudes and economic pressures
Philip Morris consolidates leadership through long-term investment and smoke-free transition
Local retail retains dominance as discounters reshape channel dynamics
Downward pressure on cigarette sales to intensify over the forecast period
International manufacturers to remain dominant as local players focus on niche export strategies
Investment in capacity and smoke-free alternatives replaces traditional product innovation
Taxation rates
Average cigarette pack price breakdown
Cigars, Cigarillos and Smoking Tobacco in Serbia
KEY DATA FINDINGS
Traditional and flavoured cigars see growing interest among consumers seeking quality and distinction
Burger Group maintains lead in cigars and cigarillos through wide assortment and accessible pricing
Specialist tobacco shops retain leadership in cigars and cigarillos through curated assortments and consumer trust
Premiumisation and flavoured options to drive growth in cigars and cigarillos, while smoking tobacco retains popularity through affordability and customisation
Market to remain dominated by leading manufacturers, with segmentation shaped by price sensitivity and expanding product portfolios
Artisanal positioning and product differentiation to fuel innovation in premium cigars and rolling tobacco
Smokeless Tobacco, E-Vapour Products and Heated Tobacco in Serbia
KEY DATA FINDINGS
Vaping gains momentum as e-vapour and heated tobacco continue to attract health-conscious and convenience-driven consumers
Leading players consolidate dominance in e-vapour and heated tobacco through innovation, reach, and premium positioning
Vape stores lead distribution for e-vapour products while small grocers sustain heated tobacco availability in underserved regions
Growth in smoke-free alternatives expected as Serbian consumers seek convenience, discretion, and perceived harm reduction
Disposable e-cigarettes gain traction, but rechargeable closed systems likely to dominate in the long term
Innovation to focus on enhanced technology, flavour customisation, and premium design features
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.
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This report originates from Passport, our Tobacco research and analysis database.
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