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.
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: 77 | Publication date: Jan 2009
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 have no sympathy for the smoker
Sales of cigarettes and smoking tobacco continued to drop in both retail value and volume in 2008. The established government legislation and regulations placed on indoor smoking in public places have already become second nature to Canadians across the country. It is no longer a matter of asking which parts of an office building or sections of a restaurant are for smokers, as the simple answer is none. Those who want to light up are relegated to the outdoors – rain or shine, hot or cold – and that is just fine with the average Canadian. There is no sense of sympathy, even in the winter time, for people who still enjoy or need a cigarette and need to make the trek outside into what are sometimes very harsh weather conditions. The idea of reducing exposure to second-hand smoke and the health risks associated with tobacco smoke takes precedence over the discomfort t of the dwindling number of Canadians still smoking.
Revolutionising a new generation of Canadians
The fight against tobacco companies and smoking has, in general, taken a full speed approach in Canada, with the country remaining one of the world leaders in anti-smoking legislation and advocacy. Up until the 1970s and early 1980s, half of all teenagers aged 15 to 19 years old were smokers. Smoking was prominent in every public establishment, transportation system and even medical facilities. Since then, the number of teenagers who smoke has fallen by almost one third. This is a major revolution in social trends among Canadian youth and those that have recently entered into adulthood. The shift has resulted in improved health when it comes to such things as developing lung cancer, premature deaths and even disposable income.
Smoking continues to decline and retailers feel the pinch
The number of smokers in Canada continues to decline on a consistent basis, and the effects of this trend do not only impact the consumer, but retailers as well. Many establishments that still sell tobacco products, such as service stations and supermarkets, have seen declines in sales due to the lower number of smokers and the wider availability of contraband cigarettes on the open market. The overall consumer traffic in many convenience stores has dropped, especially those away from city centres, resulting in declines in revenues for small business owners. The Canadian Convenience Stores Association is pleading with the federal government to do more to crack down on illegal cigarette sales.
Cigarette manufacturing continues to consolidate
Only three players could claim a national profile in cigarettes in 2008: Imperial Tobacco Canada Ltd, Rothmans Benson & Hedges Inc, and JTI McDonald Corp. Smaller tobacco companies, as a group, saw a fifth year of declining volume sales. The big three have a significant advantage at the retail level, and have been able to defend themselves against contraband cigarettes more effectively than niche brands.
Weak outlook for tobacco
Retail sales of all types of tobacco products are forecast to stay on a downward track between 2008 and 2013. Regional and national legislation is making it more difficult for smokers to find places to light up. Furthermore, anti-smoking campaigns targeting children and teens are also expected to take their toll, driving down the number of adult smokers as fewer take up the habit. This is the case in Newfoundland and Labrador, which is Canada’s second smallest province in terms of population and usually receives less national media attention. Nevertheless, the province has one of the highest per capita rates of smoking, especially amongst younger people. However, anti-tobacco and anti-smoking initiatives in the province have proved to be very effective, as within only four years, from 2003 to 2007, the average smoking rate among high school students fell from 27.3% to 16.9%.
Table of contents
TOBACCO IN CANADA : MARKET INSIGHT
EXECUTIVE SUMMARY
Canadians have no sympathy for the smoker
Revolutionising a new generation of Canadians
Smoking continues to decline and retailers feel the pinch
Cigarette manufacturing continues to consolidate
Weak outlook for tobacco
OPERATING ENVIRONMENT
Smoking Prevalence
Death by Cause
LEGISLATION
Legislative overview/FCTC ratification
Minimum legal smoking age
Tar levels
Health warnings
Duty paid packet marks
Advertising and sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 1 Taxation and Duty Levies
Production/Imports/Exports
Table 2 Trade Statistics – Cigarettes
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 3 Deaths by Diseases of the Respiratory System 2002-2007
Table 4 Deaths from Heart Disease 2002-2007
Table 5 Deaths from Lung Cancer 2002-2007
Table 6 Illicit Trade Estimate 2002-2007
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2002-2007
Table 8 Sales of Tobacco by Sector: Value 2002-2007
Table 9 Sales of Tobacco by Sector: % Volume Growth 2002-2007
Table 10 Sales of Tobacco by Sector: % Value Growth 2002-2007
Table 11 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007
Table 12 Forecast Sales of Tobacco by Sector: Volume 2007-2012
Table 13 Forecast Sales of Tobacco by Sector: Value 2007-2012
Table 14 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012
Table 15 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012
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: Key Facts
Summary 3 Grand River Enterprises: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
JTI MACDONALD CORP - TOBACCO - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 JTI MacDonald Corp: Key Facts
Summary 5 JTI MacDonald Corp: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 6 JTI MacDonald Corp: Competitive Position 2007
ROTHMANS BENSON & HEDGES INC - TOBACCO - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Rothmans Benson & Hedges Inc: Key Facts
Summary 8 Rothmans Benson & Hedges Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 9 Rothmans Benson & Hedges Inc: Competitive Position 2007
CIGARETTES IN CANADA
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 10 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 16 Sales of Cigarettes by Tar Level: Volume 2002-2007
Table 17 Sales of Cigarettes by Tar Level: Value 2002-2007
Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007
Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007
Table 20 Sales of Cigarettes by Price Band: % Volume Breakdown 2002-2007
Table 21 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2002-2007
Table 22 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2002-2007
Table 23 Sales of Cigarettes by Filter Vs Non-filter 2002-2007
Table 24 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2002-2007
Table 25 Sales of Cigarettes by Length 2002-2007
Table 26 Sales of Cigarettes by Regular/Slim 2006-2007
Table 27 Sales of Cigarettes by Pack Size 2002-2007
Table 28 Sales of Cigarettes by Pack Type 2002-2007
Table 29 Cigarettes Company Shares 2003-2007
Table 30 Cigarettes Brand Shares 2004-2007
Table 31 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012
Table 32 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012
Table 33 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
Table 34 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
Table 35 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012
Table 36 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012
Table 37 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012
Table 38 Forecast Sales of Cigarettes by Filter Vs Non-filter 2007-2012
Table 39 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2007-2012
Table 40 Forecast Sales of Cigarettes by Length 2007-2012
Table 41 Forecast Sales of Cigarettes by Regular/Slim 2007-2012
Table 42 Forecast Sales of Cigarettes by Pack Size 2007-2012
Table 43 Forecast Sales of Cigarettes by Pack Type 2007-2012
CIGARS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 44 Sales of Cigars by Subsector: Volume 2002-2007
Table 45 Sales of Cigars by Subsector: Value 2002-2007
Table 46 Sales of Cigars by Subsector: % Volume Growth 2002-2007
Table 47 Sales of Cigars by Subsector: % Value Growth 2002-2007
Table 48 Company Shares of Cigars Exluding Cigarillos 2003-2007
Table 49 Brand Shares of Cigars Exluding Cigarillos 2004-2007
Table 50 Company Shares of Cigarillos 2003-2007
Table 51 Brand Shares of Cigarillos 2004-2007
Table 52 Forecast Sales of Cigars by Subsector: Volume 2007-2012
Table 53 Forecast Sales of Cigars by Subsector: Value 2007-2012
Table 54 Forecast Sales of Cigars by Subsector: % Volume Growth 2007-2012
Table 55 Forecast Sales of Cigars by Subsector: % Value Growth 2007-2012
SMOKING TOBACCO IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 56 Sales of Smoking Tobacco by Subsector: Volume 2002-2007
Table 57 Sales of Smoking Tobacco by Subsector: Value 2002-2007
Table 58 Sales of Smoking Tobacco by Subsector: % Volume Growth 2002-2007
Table 59 Sales of Smoking Tobacco by Subsector: % Value Growth 2002-2007
Table 60 Company Shares of RYO Tobacco 2003-2007
Table 61 Brand Shares of RYO Tobacco 2004-2007
Table 62 Company Shares of Pipe Tobacco 2003-2007
Table 63 Brand Shares of Pipe Tobacco 2004-2007
Table 64 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012
Table 65 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012
Table 66 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012
Table 67 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012