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.
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.
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.
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.
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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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 definitionsThis report originates from Passport, our Tobacco research and analysis database.
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