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: 88  |  Publication date: Mar 2009
Cost: 
GBP1190.00

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

Smoking population declines

The number of Australian smokers, a number which has been on a downwards trend since the 1960s, reduced significantly in 2007. This was due to legislation attempting to de-normalise tobacco smoking by: reducing the number of situations where smokers are able to smoke; reducing the presence of tobacco at retail outlets; campaigns warning Australians about the effects of smoking; and from the increased availability of nicotine replacement therapy and other anti-smoking drugs. With the consumption of tobacco being attacked from a number of angles, the proportion of Australian smokers took a small, but significant dive.

Legal tobacco cultivation at an end

In 2006, the legal cultivation of tobacco in Australia came to an end, after British American Tobacco Australia Ltd offered growers a buyout. The effects of this extend beyond the welfare of the farmers, and include the consequent end of the related ‘chop-chop’ (i.e., illegal cigarette) industry, which was becoming a growing issue for both the tobacco industry and the government treasury. As a result of this, the focus of the illicit cigarette market swung towards illegally imported pirate cigarettes from Asia.

Smoking ban in bars across Australia

The smoking ban in licensed venues, initiated by Western Australia, Queensland and ACT has now extended to all other states except the Northern Territory. Given the high level of social smoking in Australia in such locations, particularly amongst light smokers, this helped a significant proportion of Australian smokers to quit, or at least cut down, their smoking. The effect on smoking rates, however, was minimised by the rise of outdoor bars, which have suddenly flourished around Australia. The thirst for smoking bans has gone even further, with a handful of local councils banning smoking in public.

RYO tobacco given a boost

As the curtain fell over the ‘chop-chop’ industry in 2007, many smokers found themselves returning to the closest legal equivalent; RYO tobacco. As a result, RYO tobacco was given an unexpected boost in 2007, making it the only category to experience strong growth. However, with the general trend in tobacco consumption being downwards, this is only likely to be a temporary respite.

Cigarettes experiences growth in the premium segment

With the number of smokers in permanent decline, the tobacco companies have instead shifted their emphasis onto their existing customers, and onto increasing the revenue gained from them. This they have been able to do in the aftermath of changes to Australia’s formula for calculating tobacco excise, which resulted in a minimisation of the price differences between premium and economy brands, and had already facilitated a migration upwards to more premium brands. Marketing strategies are now focused on encouraging this migration.

British American Tobacco Australia continues to grow

With a presence in every category, British American Tobacco Australia Ltd (BATA) is the largest player in the Australian tobacco market. In addition to this, its products are almost entirely in the best performing segments of the market – premium cigarettes, ‘cigarette style’ RYO tobacco and cigarillos – allowing the company to take advantage of trends, whilst Philip Morris (Australia) Ltd and Imperial Tobacco Australia Ltd are increasingly being left behind with shrinking shares.

Table of contents

TOBACCO IN AUSTRALIA : MARKET INSIGHT

EXECUTIVE SUMMARY

Smoking population declines

Legal tobacco cultivation at an end

Smoking ban in bars across Australia

RYO tobacco given a boost

Cigarettes experiences growth in the premium segment

British American Tobacco Australia continues to grow

OPERATING ENVIRONMENT

Smoking Prevalence

Table 1 Smoking Prevalence in Population 2002-2007

Table 2 Number of Smokers by Gender 2002-2007

Death by Cause

Legislation

Legislation:

Health warnings

Duty paid packet marks

Advertising & Sponsorship

Smoking in public places

Retail Licensing

Litigation

Taxation and Duty Levies

Table 3 Taxation and Duty Levies

Table 4 Average Cigarette Pack Price Breakdown : Brand Examples

Production/Imports/Exports

Table 5 Production/Imports/Exports 2002-2007

The Role and Effect of Cannabis/Marijuana

MARKET INDICATORS

Table 6 Deaths by Diseases of the Respiratory System 2002-2007

Table 7 Deaths from Heart Disease 2002-2007

Table 8 Deaths from Lung Cancer 2002-2007

Table 9 Illicit Trade Estimate 2002-2007

MARKET DATA

Table 10 Sales of Tobacco by Sector: Volume 2002-2007

Table 11 Sales of Tobacco by Sector: Value 2002-2007

Table 12 Sales of Tobacco by Sector: % Volume Growth 2002-2007

Table 13 Sales of Tobacco by Sector: % Value Growth 2002-2007

Table 14 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007

Table 15 Forecast Sales of Tobacco by Sector: Volume 2007-2012

Table 16 Forecast Sales of Tobacco by Sector: Value 2007-2012

Table 17 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012

Table 18 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012

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 BY FACTORY

Summary 4 British American Tobacco Australia Ltd: Production Statistics by Factory in million sticks

COMPETITIVE POSITIONING

Summary 5 British American Tobacco Australia Ltd: Competitive Position 2007

PHILIP MORRIS (AUSTRALIA) LTD - TOBACCO - AUSTRALIA

STRATEGIC DIRECTION

KEY FACTS

Summary 6 Philip Morris (Australia) Ltd: Key Facts

Summary 7 Philip Morris (Australia) Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION BY FACTORY

Summary 8 Philip Morris (Australia) Ltd: Production Statistics by Factory in million sticks

COMPETITIVE POSITIONING

Summary 9 Philip Morris (Australia) Ltd: Competitive Position 2007

STUART ALEXANDER & CO PTY LTD - TOBACCO - AUSTRALIA

STRATEGIC DIRECTION

KEY FACTS

Summary 10 Stuart Alexander & Co Pty Ltd: Key Facts

Summary 11 Stuart Alexander & Co Pty Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION BY FACTORY

COMPETITIVE POSITIONING

Summary 12 Stuart Alexander & Co Pty Ltd: Competitive Position 2007

SWEDISH MATCH (AUSTRALIA) PTY LTD - TOBACCO - AUSTRALIA

STRATEGIC DIRECTION

KEY FACTS

Summary 13 Swedish Match (Australia) Pty Ltd: Key Facts

Summary 14 Swedish Match (Australia) Pty Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION BY FACTORY

COMPETITIVE POSITIONING

Summary 15 Swedish Match (Australia) Pty Ltd: Competitive Position 2007

TROJAN TOBACCO COMPANY - TOBACCO - AUSTRALIA

STRATEGIC DIRECTION

KEY FACTS

Summary 16 Trojan Tobacco Company: Key Facts

Summary 17 Trojan Tobacco Company: Operational Indicators

COMPANY BACKGROUND

PRODUCTION BY FACTORY

COMPETITIVE POSITIONING

CIGARETTES IN AUSTRALIA

HEADLINES

TRENDS

Illicit trade (Cigarettes)

Cigarettes: Price Bands

Summary 18 Cigarette Price Band Definitions

Cigarettes: Filter Splits

Cigarettes: Pack Splits

Distribution

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

SECTOR DATA

Table 19 Sales of Cigarettes by Tar Level: Volume 2002-2007

Table 20 Sales of Cigarettes by Tar Level: Value 2002-2007

Table 21 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007

Table 22 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007

Table 23 Sales of Cigarettes by Price Band: % Volume Breakdown 2002-2007

Table 24 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2002-2007

Table 25 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2002-2007

Table 26 Sales of Cigarettes by Filter Vs Non-filter 2002-2007

Table 27 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2002-2007

Table 28 Sales of Cigarettes by Length 2002-2007

Table 29 Sales of Cigarettes by Regular/Slim 2006-2007

Table 30 Sales of Cigarettes by Pack Size 2002-2007

Table 31 Sales of Cigarettes by Pack Type 2002-2007

Table 32 Cigarettes Company Shares 2003-2007

Table 33 Cigarettes Brand Shares 2004-2007

Table 34 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012

Table 35 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012

Table 36 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012

Table 37 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012

Table 38 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012

Table 39 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012

Table 40 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012

Table 41 Forecast Sales of Cigarettes by Filter Vs Non-filter 2007-2012

Table 42 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2007-2012

Table 43 Forecast Sales of Cigarettes by Length 2007-2012

Table 44 Forecast Sales of Cigarettes by Regular/Slim 2007-2012

Table 45 Forecast Sales of Cigarettes by Pack Size 2007-2012

Table 46 Forecast Sales of Cigarettes by Pack Type 2007-2012

CIGARS IN AUSTRALIA

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

SECTOR DATA

Table 47 Sales of Cigars by Subsector: Volume 2002-2007

Table 48 Sales of Cigars by Subsector: Value 2002-2007

Table 49 Sales of Cigars by Subsector: % Volume Growth 2002-2007

Table 50 Sales of Cigars by Subsector: % Value Growth 2002-2007

Table 51 Company Shares of Cigars Exluding Cigarillos 2003-2007

Table 52 Brand Shares of Cigars Exluding Cigarillos 2004-2007

Table 53 Company Shares of Cigarillos 2003-2007

Table 54 Brand Shares of Cigarillos 2004-2007

Table 55 Forecast Sales of Cigars by Subsector: Volume 2007-2012

Table 56 Forecast Sales of Cigars by Subsector: Value 2007-2012

Table 57 Forecast Sales of Cigars by Subsector: % Volume Growth 2007-2012

Table 58 Forecast Sales of Cigars by Subsector: % Value Growth 2007-2012

SMOKING TOBACCO IN AUSTRALIA

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

SECTOR DATA

Table 59 Sales of Smoking Tobacco by Subsector: Volume 2002-2007

Table 60 Sales of Smoking Tobacco by Subsector: Value 2002-2007

Table 61 Sales of Smoking Tobacco by Subsector: % Volume Growth 2002-2007

Table 62 Sales of Smoking Tobacco by Subsector: % Value Growth 2002-2007

Table 63 Company Shares of RYO Tobacco 2003-2007

Table 64 Brand Shares of RYO Tobacco 2004-2007

Table 65 Company Shares of Pipe Tobacco 2003-2007

Table 66 Brand Shares of Pipe Tobacco 2004-2007

Table 67 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012

Table 68 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012

Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012

Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012