Tobacco in Australia
Euromonitor International's Tobacco in Australia market report offers a comprehensive guide to the size and shape of the market at a national level. It provides the latest retail sales data, allowing you to identify the sectors driving growth. It identifies the leading companies, the leading brands and offers strategic analysis of key factors influencing the market - be they new product developments, packaging innovations, economic/lifestyle influences, distribution or pricing issues. Forecasts illustrate how the market is set to change.
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Tables: 79 | Publication date: Nov 2007
Why buy this report
- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
- Identify market and brand leaders and understand the competitive environment
Product coverage
Cigarettes; Cigarettes including RYO; Cigars; Smoking tobacco
Executive summary
Tobacco market shows significant volume and current value declines in 2006
Australia’s tobacco market performed very poorly in 2006, with all sectors showing significant volume and current value declines. Cigars showed the steepest decline in volume terms, while volume sales fell at a slower pace in both cigarettes and smoking tobacco. Total tobacco current value sales were down by A$211 million on 2005, with government taxes accounting for about 70% of this figure.
Number of smokers declines for the first time in Australian history
The rate of smoking in Australia declined steadily throughout the review period. It is estimated that over 2005-2006, the number of regular cigarette smokers in the country fell by 0.5%. Moreover, studies suggest that the number of potential ‘new’ smokers (ie those aged 16-17 years or younger) also declined significantly over 2001-2006. This is probably the first time in Australian history that the number of smokers in the country is in decline.
Cigars hit hardest by display space restrictions over 2005-2006
Display space restrictions in most states hit cigars hardest during the review period. In many retail outlets, cigars are not visibly displayed on shelves and consumers must ask for them if they wish to buy them. This situation contributed to a sharp fall in cigars volume sales over 2005-2006, and prompted many retailers to rationalise their stock by only carrying the most popular brands, such as Willem II, Henri Wintermans and Captain Black.
RYO tobacco set to benefit as illegal suppliers are forced out of business
While smoking tobacco did show a declining trend in 2006, it is expected to be the only tobacco sector to show growth in volume and constant value terms over the forecast period. This is because legal tobacco farming in Australia is to be phased out over 2007-2009, with the result that illegal tobacco (known as ‘chop-chop’) is likely to become less readily available. During the review period, a PricewaterhouseCoopers (PwC) report estimated that the illegal trade of chop-chop in Australia had an excise value almost equal to that to the legal RYO tobacco subsector. As the supply of chop-chop declines over 2006-2011, RYO tobacco smokers will be forced to turn to legitimate products, and this will support the positive development of smoking tobacco as a whole.
Anti-smoking adverts and pack health warnings impact on volume sales
One of the main factors behind the declining trend in cigarettes volume sales during the review period was the success of high profile anti-smoking campaigns in Australia. The most notable example in 2006 was an industry funded educational campaign which informed smokers that ‘mild’ and ‘light’ brands were in no way healthier than regular cigarettes. The main aim of this campaign was to reduce the percentage of smokers who perceived such brands as being healthier from 55% to 5%. The Australian Competition and Consumer Commission (ACCC) forced tobacco producers to contribute A$9 million towards the funding of this campaign, and prohibited the sale of packs which listed the tar content of cigarettes or featured potentially misleading terms like ‘light’ or ‘mild’. New graphic warnings were introduced on packaging for all cigarettes, cigars and smoking tobacco products in March 2006, and this also had a negative impact on volume sales growth. These warnings cover 90% of the back of cigarette packs and 30% of the front, and should contribute to further declines in Australia’s smoking population over the forecast period.
New legislation will continue to reduce smoking opportunities
Over the forecast period, both state and federal governments will continue to legislate to reduce smoking opportunities. By mid 2007 there will be a nationwide ban on smoking in enclosed public spaces in Australia, including bars, clubs and other licensed premises. With smoking already prohibited in workplaces and in many open public places, such as near building entrances, in parks, near schools, at the beach and in private cars, this will further reduce the number of opportunities that smokers have to indulge their habit during the course of the day and have a correspondingly negative effect on volume sales, particularly in cigarettes.
Table of contents
TOBACCO IN AUSTRALIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Tobacco market shows significant volume and current value declines in 2006
Number of smokers declines for the first time in Australian history
Cigars hit hardest by display space restrictions over 2005-2006
RYO tobacco set to benefit as illegal suppliers are forced out of business
Anti-smoking adverts and pack health warnings impact on volume sales
New legislation will continue to reduce smoking opportunities
OPERATING ENVIRONMENT
Smoking Population
Death by Cause
Legislation
Tar
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 1 Taxation and Duty Levies
Table 2 Average Cigarette Pack Price Breakdown: Brand Examples
Production/Imports/Exports
Table 3 Trade Statistics – Cigarettes 2001-2006
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 4 Deaths by Diseases of the Respiratory System 2001-2006
Table 5 Deaths from Heart Disease 2001-2006
Table 6 Deaths from Lung Cancer 2001-2006
Table 7 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 8 Sales of Tobacco by Sector: Volume 2001-2006
Table 9 Sales of Tobacco by Sector: Value 2001-2006
Table 10 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 11 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 12 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 13 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 14 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 15 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 16 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - AUSTRALIA
BRITISH AMERICAN TOBACCO AUSTRALIA LTD - TOBACCO - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco Australia Ltd: Key Facts
Summary 3 British American Tobacco Australia Ltd: Operational Indicators 2003-2004
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 4 British American Tobacco Australia: Cigarette Production in Sticks (million)
COMPETITIVE POSITIONING
Summary 5 British American Tobacco Australia Ltd: Competitive Position 2006
IMPERIAL TOBACCO AUSTRALIA LTD - TOBACCO - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Imperial Tobacco Australia Ltd: Key Facts
Summary 7 Imperial Tobacco Australia Ltd: Operational Indicators 2003-2004
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 8 Imperial Tobacco Australia Ltd: Competitive Position 2006
PHILIP MORRIS (AUSTRALIA) LTD - TOBACCO - AUSTRALIA
KEY FACTS
Summary 9 Philip Morris (Australia) Ltd: Key Facts
Summary 10 Philip Morris (Australia) Ltd: Operational Indicators 2003
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 11 Philip Morris (Australia) Ltd: Cigarette Production in Sticks (million)
COMPETITIVE POSITIONING
Summary 12 Philip Morris (Australia) Ltd: Competitive Position 2006
CIGARETTES IN AUSTRALIA
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Cigarettes: Filter Splits
Table 17 Slims/superslims Penetration 2006
Cigarettes: Pack Splits
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 18 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 19 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 20 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 21 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 22 Sales of Cigarettes by Price Band: %Volume Breakdown 2001-2006
Table 23 Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2001-2006
Table 24 Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2001-2006
Table 25 Sales of Cigarettes by Filter Vs Non-filter 2001-2006
Table 26 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2001-2006
Table 27 Sales of Cigarettes by Length 2001-2006
Table 28 Sales of Cigarettes by Pack Size 2001-2006
Table 29 Sales of Cigarettes by Pack Type 2001-2006
Table 30 Cigarettes Company Shares 2002-2006
Table 31 Cigarettes Brand Shares 2003-2006
Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 36 Forecast Sales of Cigarettes by Price Band: %Volume Breakdown 2006-2011
Table 37 Forecast Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2006-2011
Table 38 Forecast Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2006-2011
Table 39 Forecast Sales of Cigarettes by Filter Vs Non-filter 2006-2011
Table 40 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2006-2011
Table 41 Forecast Sales of Cigarettes by Length 2006-2011
Table 42 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 43 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN AUSTRALIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 44 Sales of Cigars by Subsector: Volume 2001-2006
Table 45 Sales of Cigars by Subsector: Value 2001-2006
Table 46 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 47 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 48 Company Shares of Cigars Exluding Cigarillos 2002-2006
Table 49 Brand Shares of Cigars Exluding Cigarillos 2003-2006
Table 50 Company Shares of Cigarillos 2002-2006
Table 51 Brand Shares of Cigarillos 2003-2006
Table 52 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 53 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 54 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 55 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO IN AUSTRALIA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 56 Sales of Smoking Tobacco by Subsector: Volume 2001-2006
Table 57 Sales of Smoking Tobacco by Subsector: Value 2001-2006
Table 58 Sales of Smoking Tobacco by Subsector: % Volume Growth 2001-2006
Table 59 Sales of Smoking Tobacco by Subsector: % Value Growth 2001-2006
Table 60 Company Shares of RYO Tobacco 2002-2006
Table 61 Brand Shares of RYO Tobacco 2003-2006
Table 62 Company Shares of Pipe Tobacco 2002-2006
Table 63 Brand Shares of Pipe Tobacco 2003-2006
Table 64 Forecast Sales of Smoking Tobacco by Subsector: Volume 2006-2011
Table 65 Forecast Sales of Smoking Tobacco by Subsector: Value 2006-2011
Table 66 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2006-2011
Table 67 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2006-2011