In the past four years, cigarette contraband stood ta 14.7% of the market.
“In May 2015, illicit cigarette trade declined considerably compared to March in the south-east (- 8.2 percentage points, to 6.1%) and the west (-7.3 points, to 16.9%). Although contraband decreased countrywide, in the north-eats, the most affected region, it remained relatively constant in May, at 34.2%, said Marian Marcu, head of Novel Research.
“Cheap whites”, cigarettes that have no legitimate market, continue to account for the largest part of the cigarette black market, at 55.8%, up 15 points compared to March. Smuggling from Ukraine and Moldova decreased to 14.1% and 23%, respectively, while smuggling from Serbia remained relatively constant at 2.2%.
The tobacco industry is the second largest tax payer in Romania after the oil industry. In 2014, the tobacco industry contributed around EUR2.7 billion to the state budget, or 1.75% of GDP and 12.5% of total budget revenues.
The top three players on the market, JTI, BAT and Philip Morris, account for 95% of the market and cigarette sales increased 7.5% on the year in 2014.
In 2014, JTI, the market leader, had a turnover of RON545.2 million, RON44.8 million higher than in 2013, and posted a net profit of RON24.18 million from a loss of RON1.3 million in 2013.
British American Tobacco posted a profit of RON3.5 million and a turnover of RON179.1 million, RON2.3 million lower than in 2013.
Philip Morris posted a turnover of RON165.9 million, RON18.5 million higher than in 2013, and a net profit of RON20.7 million, RON2.8 million higher than in 2013.