Ukrainian Shisha Tobacco Market Report. 2018
| Date of Preparation: | March 2018 year |
| Number of pages: | 19 Arial, 1 interval, 10 size |
| Graphs and charts: | 14 |
| Tables: | 5 |
| Payment method: | prepayment |
| Production method: | e-mail or courier electronically or in printed form |
| Report language: | Russian, English |
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Summary of the market analysis:
According to different reports, nearly 2% of Ukrainian adults smoke shisha. This share is higher among men rather than women. The main ingredients for the shisha tobacco are tobacco itself, molasses or honey, glycerin flavoring and conservants.
The shisha tobacco market is regulated by The Law of state regulation of manufacture and trading of alcohol and tobacco products.
The manufacture of tobacco products is possible by all entities regardless form of ownership upon condition of receiving the license. The license is issued and revoked by the Department of control on manufacture and sales of alcohol, alcoholic beverages and tobacco products of the State Tax Administration.
The import duty for shisha tobacco (already finished Molasses product) is 20%. For raw tobacco – 1%. Shisha tobacco is subject to excise duty. Since 01.01.2018 the excise duty 726.15 UAH/kg. This applies to both raw tobacco and finished product. Tobacco products, imported to Ukraine according to the EFTA agreement is a subject to reduced import duty, which constitutes 0%.
Shisha tobacco market in Ukraine is influenced by economic, political factors and state regulation. The major trends of Ukrainian shisha tobacco market are:
- Low production level
- Increase of the imported tobacco prices due to devaluation
- Shadow market dominance.
The estimation of the shadow market was conducted by Pro-Consulting through the consumption.
Socio-economic changes that occurred in Ukraine since 2012, had different effects on consumption. The growth factor was the spread of hookah popularity and the increase of the number of public catering establishments where the hookah services are offered. The deterrent factors included a decrease in real income and the decrease in population due to the annexation of the Crimea, military operations in the Donbass and emigration, in which potential consumers of hookahs (adult able-bodied population) participate.
Toughening of state control over legal and illegal turnover of tobacco products, a drop in demand due to a decrease in the level of real incomes of the population, as well as further devaluation of the national currency may be the constraining factors.
Detailed contents:
1. General market characteristics. Market volume evaluation (production + imports – exports). Shadow market evaluation.
2. State regulation at the shisha tobacco market (certifications, excise payments, import duties)
3. Manufacture and sales in shisha tobacco market in 2015 – 11/2017
3.1. Manufacture in natural measure in 2015 – 11/2017
3.2. Sales in in 2015 – 11/2017 (Evaluation based on official and shadow markets and average prices. Sales by regions).
4. Foreign trade
4.1.Exports in 2015-11/2017гг. (Volume, brand structure, geography, exporters, invoice prices)
4.2. Imports in 2015 – 11/2017 (Volume, TM structure, geography, importers, invoice prices)
5. Prices of shisha tobacco manufacturers (as a result of “potential distributor” enquiry, data volume – based on availability, if manufacturer claims there is an official distributor, distributors prices are provided).
6. Distribution channels (network, non-network companies, online stores). Evaluation of volumes by distribution channels
7. Conclusions and recommendations. Forecasted trends of Ukrainian shisha tobacco market in 2018-2020.
List of Tables:
1. Ukrainian shisha tobacco market volume in 2015 – 11 months of 2017 in natural measure, tons
2. Ukrainian shisha tobacco market volume in 2015 – 11 months of 2017 in monetary measure, UAH mln
3. Invoice prices for imported shisha tobacco in Ukraine.
4. Wholesale prices of shisha tobacco manufacturers
5. Current wholesale and retail prices of official distributors and retailers for shisha tobacco in Ukraine as of 2017, UAH/50g
List of graphs and charts:
1. Structure of Ukrainian shisha tobacco market in 2017,%
2. Average retail prices for shisha tobacco in Ukraine in 2015 – 11/2017
3. Shisha tobacco sales in 2015 – 11/2017, tons
4. Shisha tobacco sales in 2015 – 11/2017, UAH bn
5. Regional structure of average salary in Ukraine in 2017
6. Regional structure of shisha tobacco consumption in Ukraine.
7. Shisha tobacco export structure by aroma for 11/2017
8. Imports of shisha tobacco to Ukraine in 2015 – 11/2017.
9. Shisha tobacco importers structure in Ukraine in 2016 in natural units
10. Shisha tobacco officially imported brands structure in 9/2015-11/2017 in natural units, %
11. Shisha tobacco import geography in 2015 – 11/2017
12. Shisha tobacco import structure by aroma in 11/2017 in natural units,
13. Major distribution channels in shisha tobacco market
14. Structure of shisha tobacco sales in Ukraine
