Tobacco in France
Euromonitor International's Tobacco in France 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: 89 | Publication date: Oct 2009
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Executive summary
Retail volume sales decline across tobacco in 2008
Overall, retail volume sales declined in tobacco categories in 2008. The most impacted category was pipe tobacco which continued to register a strong decline in 2008. RYO tobacco was the only category to register retail volume growth in 2008. The smoking ban, introduced in January 2008, in every on-trade outlet in France, the price rise in 2007 and a decrease in consumer purchasing power damaged demand and consumption. Bar-tobacconists was the distribution format hit hardest by the smoking ban, suffering reduced customer traffic and sales.
Success for mid-priced and economy cigarettes
Following the new tax increase in 2007, cigarette brands that exceeded the psychological threshold of EUR5.00 per pack of 20 suffered from the shift to mid-priced and economy alternatives. For example, Marlboro Red, the most popular cigarette brand in France suffered a strong decrease in retail volume sales in 2008, while Lucky Strike, a mid-priced range increased its shares. The strong performing brands in 2008 were mostly economy ones such as News, Fortuna, John Player Special, and L&M. These brands recorded retail volume share growth in 2008. Consumers are increasingly price sensitive as their expenditure on tobacco is part of the overall food budget. In this context, the deterioration of household purchasing power has increased the importance of price in the purchasing decisions of consumers.
Acquisitions alter competitive landscape in 2008
In 2008, acquisitions consolidated or led to changes in the competitive positioning of some players in the industry. In January 2008, Altadis SA was completely acquired by Imperial Tobacco Group Plc. This acquisition allowed the Imperial Tobacco Group to increase its sales force and shares. As a result, Altadis consolidated its second position in cigarettes and leading position in cigars. Philip Morris International Inc also acquired three new brands for Philip Morris France SAS in August 2008, Interval and Santoya (RYO tobacco) and Bergerac, a leading pipe tobacco.
Bar-tobacconists loses customers due to smoking ban
Bar-tobacconists accounted for over one half of retail volume sales of cigarettes, cigars and smoking tobacco in 2008. With the extension of the smoking ban, bar-tobacconists experienced decline in custom. Two key developments resulted from the extension of the smoking ban. Firstly, a French government survey revealed that the first impact of the ban was the closure of mono-activity tobacconists or smaller outlets that did not anticipate the new law by creating facilities for smokers or a drop in customer traffic. Outlets which created designated smoking areas and new offers were less impacted by the legislation. This stabilised the retail volume shares of bar-tobacconists in 2008, following significant decreases in 2007.
An uncertain future
Over the forecast period, retail volume sales are expected to continue decreasing for cigarettes and cigars, reflecting the long-term trend of consumption decline. This decline is due to the ongoing anti-smoking stance of the French government, growing health concerns and a gloomy economic situation which is delaying improved household purchasing power. Prices will remain the key factor and a further increase should lead directly to a decline in demand and an increase in cross-border purchases. However, retail volume sales of smoking tobacco are predicted to grow, boosted by cigarette brand extensions into RYO tobacco, such as John Player Special (JPS) by Imperial Tobacco France SA. Other companies are expected to follow suit, which is likely to boost RYO tobacco sales over the forecast period.
Table of contents
TOBACCO IN FRANCE : MARKET INSIGHT
EXECUTIVE SUMMARY
Retail volume sales decline across tobacco in 2008
Success for mid-priced and economy cigarettes
Acquisitions alter competitive landscape in 2008
Bar-tobacconists loses customers due to smoking ban
An uncertain future
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
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
Table 5 Average Cigarette Pack Price Breakdown: Brand Examples 2008
PRODUCTION/IMPORTS/EXPORTS
Table 6 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 7 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 8 Sales of Tobacco by Sector: Volume 2003-2008
Table 9 Sales of Tobacco by Sector: Value 2003-2008
Table 10 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 11 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 12 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 13 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 15 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - FRANCE
ALTADIS SA - TOBACCO - FRANCE
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Altadis SA: Key Facts
Summary 3 Altadis SA: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 4 Cigarettes Production Capacity by Factory in Billion Sticks 2003-2006
COMPETITIVE POSITIONING
Summary 5 Altadis SA: Competitive Position 2008
BRITISH AMERICAN TOBACCO FRANCE - TOBACCO - FRANCE
STRATEGIC DIRECTION
KEY FACTS
Summary 6 British American Tobacco France: Key Facts
Summary 7 British American Tobacco France: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 8 British American Tobacco France: Competitive Position 2008
IMPERIAL TOBACCO FRANCE SA - TOBACCO - FRANCE
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Imperial Tobacco France SA: Key Facts
Summary 10 Imperial Tobacco France SA: Operational Indicators including Altadis SA
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 11 Imperial Tobacco France SA: Competitive Position 2008
JT INTERNATIONAL FRANCE SAS - TOBACCO - FRANCE
STRATEGIC DIRECTION
KEY FACTS
Summary 12 JT International France SAS: Key Facts
Summary 13 JT International France SAS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 14 JT International France SAS: Competitive Position 2008
PHILIP MORRIS FRANCE SAS - TOBACCO - FRANCE
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Philip Morris France SAS: Key Facts
Summary 16 Philip Morris France SAS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 17 Philip Morris France SAS: Competitive Position 2008
CIGARETTES IN FRANCE
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 18 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 16 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 17 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 20 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 21 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 22 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 23 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 24 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 25 Sales of Cigarettes by Length 2003-2008
Table 26 Sales of Cigarettes by Regular/Slim 2006-2008
Table 27 Sales of Cigarettes by Pack Size 2003-2008
Table 28 Sales of Cigarettes by Pack Type 2003-2008
Table 29 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 30 Cigarettes Company Shares 2004-2008
Table 31 Cigarettes Brand Shares 2005-2008
Table 32 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 33 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 35 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 36 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 37 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 39 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 40 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 41 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 42 Forecast Sales of Cigarettes by Length 2008-2013
Table 43 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 44 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 45 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS IN FRANCE
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 46 Sales of Cigars by Subsector: Volume 2003-2008
Table 47 Sales of Cigars by Subsector: Value 2003-2008
Table 48 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 49 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 50 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 51 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 52 Company Shares of Cigarillos 2004-2008
Table 53 Brand Shares of Cigarillos 2005-2008
Table 54 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 55 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 56 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 57 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 58 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO IN FRANCE
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 59 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 60 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 61 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 62 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 63 Company Shares of RYO Tobacco 2004-2008
Table 64 Brand Shares of RYO Tobacco 2005-2008
Table 65 Company Shares of Pipe Tobacco 2004-2008
Table 66 Brand Shares of Pipe Tobacco 2005-2008
Table 67 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 68 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 69 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 71 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013