CECAEN Rev 3
EN RO
Sections Correlation Guide About the Project Contact
Group 120

Manufacture of tobacco products

This division includes the manufacture of tobacco products, from leaf processing to the production of cigarettes, cigars or smoking tobacco. If your main activity is the industrial production of tobacco articles, this is the appropriate CAEN code.

Included Activities & Applicability

  • ✅ Production of cigarettes Production of cigars and cigarillos Production of smoking tobacco Production of pipe and hookah tobacco Processing of tobacco leaves (drying
  • ✅ fermenting
  • ✅ cutting) Manufacture of tobacco extracts and concentrates

Excluded Activities & Restrictions

  • ❌ Retail trade of tobacco products Growing of tobacco Manufacture of tobacco substitutes (e.g.
  • ❌ electronic cigarettes
  • ❌ nicotine-free products)

Subordinate Structure

1200 Manufacture of tobacco products
→

Detailed Analysis & Commercial Insights

Division 120 of the National Classification of Economic Activities (CAEN) covers the manufacture of tobacco products, a niche with a long history and significant fiscal impact in Romania.

Although tobacco consumption is declining in many developed countries, the domestic market remains one of the most profitable in the region, due to constant demand and high margins. Romania is a major tobacco producer in the European Union, with a solid agricultural tradition in areas such as Oltenia and Muntenia, and local factories process both domestic and imported leaves.

Macro-economically, the tobacco industry contributes substantially to the state budget through excise duties and VAT, but faces increasingly strict regulations on advertising, packaging, and harmful substances content. Also, rising taxes on tobacco products and expanding anti-smoking restrictions have forced manufacturers to adapt by cost efficiency and product diversification. Moreover, the emergence of electronic cigarettes and heated tobacco devices has changed the competitive landscape, although their manufacture is classified separately in CAEN.

Entrepreneurs active in division 120 face challenges related to compliance with EU quality standards, managing the supply chain of raw materials, and maintaining competitiveness in a highly regulated market. Despite the difficulties, constant demand and high profitability make this niche attractive for investments, especially in the context of exports to Central and Eastern European countries.