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.
Buy online to access strategic market analysis and an interactive statistical database of duty paid retail volume and value sales, illicit trade volume, company and brand shares, pricing, distribution and production data.
Tables: 87 | Publication date: Jan 2010
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Executive summary
Tobacco sales show positive growth despite a slowing economy
Despite the slowdown in the economy towards the second half of 2008, consumers are not cutting back on the level of tobacco consumption. In 2008, consumption of tobacco continues to grow positively across cigarettes, and smoking tobacco in terms of volume. In cigarettes and smoking tobacco, consumers in Australia remain loyal in their tobacco preferences and are choosing to cut back on expenditure in other areas such as trading down from dining at full-service restaurants to the more affordable fast food alternatives or eating at home. Interestingly, for cigars which are generally consumed at leisure as an indulgence or luxury, some consumers are observed to switch to cheaper indulgences. Consequently, cigars post a declining volume growth in 2008.
Smoking population continues to fall
Smoking prevalence as a percentage of population has been declining since a peak in the early 1990s, with fewer young Australians picking up the habit compared to previous generations. While greater restrictions, such as increased smoking bans in public areas, significantly impacted the rate of smoking, many smokers were primarily concerned with the effects of smoking on health and fitness which provided them with the motivation to reduce their tobacco intake or stop smoking completely.
British American Tobacco Australia Ltd maintains dominance
The success of British American Tobacco Australia Ltd is attributed to the company’s presence across a wide range of product sectors and segments of tobacco products in Australia. The company has been exceptionally successful in cigarettes, with leading brands in the mid-priced and premium price bands. British American Tobacco Australia Ltd is also strongly positioned in smoking tobacco with the most popular cigarette brand (Winfield) also leading RYO tobacco volume sales.
Supermarkets’ distribution share grows
With aggressive price competition, supermarkets increased their volume share of tobacco sales, particularly in cigarettes and cigars. As smokers typically display a degree of loyalty to tobacco brands, consumers look to the distribution channels for better value in their purchases. Convenience stores saw marginal declines in cigars and smoking tobacco, while tobacco specialists continued to lead in cigar sales with more than half of all volume sales. Internet retailing remained insignificant, despite the price discounting offered by the online channel.
Little movement expected for tobacco sales
The fall in smoking prevalence in Australia and continued restrictions on smoking in public areas will contribute to the expected stagnant performance of tobacco over the forecast period. With a targeted focus on national preventative health measures, the federal government has indicated that more extreme legislation could be passed to ‘de-normalise’ smoking in order to reduce the incidence of smoking-related diseases in the country. Worsening economic conditions, expected to continue over the first half of the forecast period, will also deter consumers from purchasing higher-priced cigarettes and cigars, although RYO tobacco is forecasted to see slight growth resulting from smokers looking for value in their tobacco purchases.
Table of contents
TOBACCO IN AUSTRALIA : MARKET INSIGHT
EXECUTIVE SUMMARY
Tobacco sales show positive growth despite a slowing economy
Smoking population continues to fall
British American Tobacco Australia Ltd maintains dominance
Supermarkets’ distribution share grows
Little movement expected for tobacco sales
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
Table 3 Death by Cause 2004-2008
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/FCTC ratification
Country-specific legislation:
Minimum legal smoking age
Tar levels
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
TAXATION AND DUTY LEVIES
Table 4 Taxation and Duty Levies 2008
Table 5 Specific Taxes (Excise Duty) – Cigarettes – 2001-2007
Table 6 Average Cigarette Pack Price Breakdown: Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 7 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 8 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 9 Sales of Tobacco by Sector: Volume 2003-2008
Table 10 Sales of Tobacco by Sector: Value 2003-2008
Table 11 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 12 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 13 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 15 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 16 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
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
COMPANY BACKGROUND
PRODUCTION
Summary 4 British American Tobacco Australia Ltd: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 5 British American Tobacco Australia Ltd: Competitive Position 2008
IMPERIAL TOBACCO AUSTRALIA LTD - TOBACCO - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Imperial Tobacco Australia Ltd: Key Facts
Summary 7 Imperial Tobacco Australia Ltd Name: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 Imperial Tobacco Australia Ltd: Competitive Position 2008
PHILIP MORRIS (AUSTRALIA) LTD - TOBACCO - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Philip Morris (Australia) Ltd: Key Facts
Summary 10 Philip Morris (Australia) Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 11 Philip Morris (Australia) Ltd: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 12 Philip Morris (Australia) Ltd: Competitive Position 2008
TABACARIA PTY LTD - TOBACCO - AUSTRALIA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Tabacaria Pty Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
CIGARETTES IN AUSTRALIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 14 Cigarettes - New Product Launches 2008
PROSPECTS
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 15 Cigarette Price Band Definitions
Cigarettes: Menthol/standard
Cigarettes: Filter/non-filter
Cigarettes: Carbon/standard filter
Cigarettes: Filter length
Cigarettes: Slims/superslims vs regular
Cigarettes: Pack size
Cigarettes: Pack type
SECTOR DATA
Table 17 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 18 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 19 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 20 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 21 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 22 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 23 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 24 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 25 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 26 Sales of Cigarettes by Length 2003-2008
Table 27 Sales of Cigarettes by Regular/Slim 2006-2008
Table 28 Sales of Cigarettes by Pack Size 2003-2008
Table 29 Sales of Cigarettes by Pack Type 2003-2008
Table 30 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 31 Cigarettes Company Shares 2004-2008
Table 32 Cigarettes Brand Shares 2005-2008
Table 33 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 34 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 35 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 36 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 37 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 38 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 39 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 40 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 41 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 42 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 43 Forecast Sales of Cigarettes by Length 2008-2013
Table 44 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 45 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 46 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS IN AUSTRALIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 47 Sales of Cigars by Subsector: Volume 2003-2008
Table 48 Sales of Cigars by Subsector: Value 2003-2008
Table 49 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 50 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 51 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 52 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 53 Company Shares of Cigarillos 2004-2008
Table 54 Brand Shares of Cigarillos 2005-2008
Table 55 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 56 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 57 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 58 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 59 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO IN AUSTRALIA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 60 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 61 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 62 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 63 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 64 Company Shares of RYO Tobacco 2004-2008
Table 65 Brand Shares of RYO Tobacco 2005-2008
Table 66 Company Shares of Pipe Tobacco 2004-2008
Table 67 Brand Shares of Pipe Tobacco 2005-2008
Table 68 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 69 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 70 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 71 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 72 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013
SMOKELESS TOBACCO IN AUSTRALIA
TRENDS