Tobacco in Canada
Euromonitor International's Tobacco in Canada 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: 84 | Publication date: Feb 2008
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
Canadians Are Smoking Less
Canadians are smoking less. Every year the number of Canadians who continue to smoke or began smoking declines, and 2006 was no exception. Factors such as lower stress levels and increased use of tobacco substitutes, such as eating, have had a negative impact on national smoking rates. Whilst reported stress levels in Québec are the highest in the country, they have stabilised, whilst levels in other provinces, especially those in the Maritime region, declined in 2006. Canadians are also eating more, which is a common substitute for smoking. There has been an increase in obesity levels in Canada, which coincides with the decreasing rate of smoking in Canada.
Rates of smoking amongst younger people aged 12 to 17 also continued a sharp decline in 2006, once again registering close to a 10% drop. This is likely the most significant statistic for antismoking lobbyists since individuals who do not begin smoking by the age of 18 are unlikely to begin smoking as adults. In addition, close to 200,000 Canadians quit smoking in 2006.
Tobacco Prices Affect Smoking Patterns
Pricing of tobacco products, more specifically cigarettes, is directly correlated with smoking patterns amongst consumers, especially young people. Whilst moderate increases in cigarette prices do not have a significant impact on the average consumer, they do act as a deterrent for people under 18 years old and low-income earners who are moderate to below-moderate smokers. If the price of cigarettes or tobacco-related products drops, young people are more likely to start smoking, according to a study by the Department of Public Health and Sciences of the University of Toronto.
Tobacco-tax hikes have become a major factor in the federal and provincial governments' strategy towards deterring children from trying or continuing smoking. They are also used to reduce tobacco companies' productivity and profitability. When the federal government and several Canadian provinces began to reduce tobacco taxes in the early 1990s in order to fight against higher levels of cigarette smuggling, the number of cigarette purchases in those provinces, along with the number of young people who started smoking, went up by 11%, which was three percentage points higher than other provinces that kept their tax rates the same.
Tax Revenues Have Fallen Due to Illicit Sales
There was an 8% decline in federal tax revenues for cigarettes in 2006 compared to the year prior. The Canada Revenue Agency reported that these revenues fell by C$255 million to C$2.7 billion total. This decrease in revenue is equal to the amount of tobacco tax that would be collected by close to 442,000 pack-a-day smokers over the course of the year, which is more than twice the amount of people who actually quit smoking in 2006. This shows a growing discrepancy in official smoking and revenue statistics, which means that illicit sales increased as more cigarettes were sold untaxed.
An important factor in this discrepancy is cigarettes that are sold on native reserves, as eligible people from the First Nations in certain provinces are exempt from federal and provincial taxes. This allows for establishments within these reserves to sell cigarettes at a considerably cheaper price than cigarettes that are sold in metropolitan convenience stores or supermarkets/hypermarkets, for instance. By purchasing cigarettes in First Nations communities, Canadian smokers have been able to buy cigarettes at cheaper prices. The brands that are manufactured and sold on these reserves, whose residents pay no taxes, include domestic, illicit and imported brands that enter into the reserves without tax implications.
Smoking Is Becoming a Thing of the Past in Public Places and Homes
Restaurants, offices and indoor public places across Canada have banned smoking in accordance with federal and provincial legislation. It is very rare to find indoor facilities that cater to smokers, and that is why it is very common to see smokers reduced to having a cigarette, for example, outside on the sidewalk even in the dead of winter. This has become the norm not only in public, but in the average Canadian home as well.
According to a Canadian Cancer Society survey in December 2005, a majority of Canadians have also made their homes into smoke-free zones, even if there is a habitual smoker living within the household. Close to 94% of households across the country that have no smokers residing reported that they do not allow guests to light up tobacco products inside their homes. Half of the households that include smokers reported keeping their homes smoke free. One of the most common reasons for this has been the realization that harm can result from second-hand smoke, especially amongst children. This is a huge difference from reports that were conducted a decade before that saw only 10% of Canadian households with smokers reporting keeping their homes smoke-free.
Smoking Is Having a Large Impact on the Health of Canadians
The Canadian Cancer Society reports that close to 48,000 Canadians die each year from tobacco use. Cigarette smoking caused around 30% of registered cancer cases in Canada, which includes more than 85% of people with lung cancer. Amongst smokers lung cancer was the leading cause of cancer death for both men and women. Whilst the association between cancer and those who smoke has become an accepted link within Canadian society, second-hand smoke has become a major issue and worry even with smoking bans in public places.
The Ontario Tobacco Research Unit at the University of Toronto reports that tar and chemicals from smoking stick to the walls, furniture and clothes, releasing dangerous molecules into the air even weeks to months afterwards. Children are the ones at the biggest health risk since their lungs are smaller and inhale more passive smoke. Even those who smoke outside can carry the residue from cigarettes inside on their clothing, which transfers it to children and other people.
The number of health problems linked to smoking continues to increase. Connections are recognised between second-hand smoke and health conditions ranging from sudden infant death syndrome and asthma in children to cancer and heart disease in adults. These medical reports have had a negative impact on cigarette sales and the image portrayed by large cigarette manufacturing companies.
Table of contents
TOBACCO IN CANADA : MARKET INSIGHT
EXECUTIVE SUMMARY
Canadians Are Smoking Less
Tobacco Prices Affect Smoking Patterns
Tax Revenues Have Fallen Due to Illicit Sales
Smoking Is Becoming a Thing of the Past in Public Places and Homes
Smoking Is Having a Large Impact on the Health of Canadians
OPERATING ENVIRONMENT
Smoking Population
Table 1 Smoking Prevalence in Population 2001-2006
Table 2 Number of Smokers by Gender 2001-2006
Death by Cause
Legislation
Tar
Health Warnings
Duty-paid Packet Marks
Advertising and Sponsorship
Smoking in Public Places
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies 2001-2006
Table 4 Average Cigarette Pack Price Breakdown : Brand Examples
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes 2001-2006
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 6 Deaths from Heart Disease 2001-2006
Table 7 Deaths from Lung Cancer 2001-2006
Table 8 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 9 Sales of Tobacco by Sector: Volume 2001-2006
Table 10 Sales of Tobacco by Sector: Value 2001-2006
Table 11 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 12 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 13 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 14 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 15 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 16 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 17 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CANADA
GRAND RIVER ENTERPRISES SIX NATIONS LTD - TOBACCO - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Grand River Enterprises Six Nations Ltd: Key Facts
Summary 3 Grand River Enterprises Six Nations Ltd: Operational Indicators 2003-2005
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 4 Grand River Enterprises Six Nations Ltd: Competitive Position 2006
IMPERIAL TOBACCO CANADA LTD - TOBACCO - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Imperial Tobacco Canada: Key Facts
Summary 6 Imperial Tobacco Canada: Operational Indicators 2003-2005
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 7 Imperial Tobacco Canada: Production Statistics by Factory 2002-2005
COMPETITIVE POSITIONING
Summary 8 Imperial Tobacco Canada: Competitive Position 2006
JTI MACDONALD CORP - TOBACCO - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 JTI MacDonald: Key Facts
Summary 10 JTI MacDonald: Operational Indicators 2003-2005
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 11 JTI MacDonald Corp: Production Statistics by Factory 2005
COMPETITIVE POSITIONING
Summary 12 JTI MacDonald: Competitive Position 2006
ROTHMANS BENSON & HEDGES INC - TOBACCO - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Rothmans Benson & Hedges: Key Facts
Summary 14 Rothmans Benson & Hedges: Operational Indicators 2003-2005
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 15 Rothmans Benson & Hedges Production Statistics by Factory 2003-2005
COMPETITIVE POSITIONING
Summary 16 Rothmans Benson & Hedges: Competitive Position 2006
CIGARETTES IN CANADA
HEADLINES
TRENDS
Illicit Trade (Cigarettes)
Cigarettes: Price Bands
Cigarettes: Filter Splits
Table 18 Slims/superslims Penetration 2006
Cigarettes: Pack Splits
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 19 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 20 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 21 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 22 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 23 Sales of Cigarettes by Price Band: % Volume Breakdown 2001-2006
Table 24 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2001-2006
Table 25 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2001-2006
Table 26 Sales of Cigarettes by Filter vs Non-filter 2001-2006
Table 27 Sales of Filter Cigarettes by Carbon vs Non-carbon 2001-2006
Table 28 Sales of Cigarettes by Length 2001-2006
Table 29 Sales of Cigarettes by Pack Size 2001-2006
Table 30 Sales of Cigarettes by Pack Type 2001-2006
Table 31 Cigarettes Company Shares 2002-2006
Table 32 Cigarettes Brand Shares 2003-2006
Table 33 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 34 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 35 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 36 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 37 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 38 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 39 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 40 Forecast Sales of Cigarettes by Filter vs Non-filter 2006-2011
Table 41 Forecast Sales of Filter Cigarettes by Carbon vs Non-carbon 2006-2011
Table 42 Forecast Sales of Cigarettes by Length 2006-2011
Table 43 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 44 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 45 Sales of Cigars by Subsector: Volume 2001-2006
Table 46 Sales of Cigars by Subsector: Value 2001-2006
Table 47 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 48 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 49 Company Shares of Cigars Excluding Cigarillos 2002-2006
Table 50 Brand Shares of Cigars Excluding Cigarillos 2003-2006
Table 51 Company Shares of Cigarillos 2002-2006
Table 52 Brand Shares of Cigarillos 2003-2006
Table 53 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 54 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 55 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 56 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 57 Sales of Smoking Tobacco by Subsector: Volume 2001-2006
Table 58 Sales of Smoking Tobacco by Subsector: Value 2001-2006
Table 59 Sales of Smoking Tobacco by Subsector: % Volume Growth 2001-2006
Table 60 Sales of Smoking Tobacco by Subsector: % Value Growth 2001-2006
Table 61 Company Shares of RYO Tobacco 2002-2006
Table 62 Brand Shares of RYO Tobacco 2003-2006
Table 63 Company Shares of Pipe Tobacco 2002-2006
Table 64 Brand Shares of Pipe Tobacco 2003-2006
Table 65 Forecast Sales of Smoking Tobacco by Subsector: Volume 2006-2011
Table 66 Forecast Sales of Smoking Tobacco by Subsector: Value 2006-2011
Table 67 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2006-2011
Table 68 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2006-2011