Tobacco in Germany
Euromonitor International's Tobacco in Germany 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: 97 | Publication date: Sep 2007
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
Further decline in cigarette sales, but rate of decline slowing
Volume sales declined in the cigarettes sector in 2006, although by a lesser rate than in 2005, as cigarettes no longer lost share to RYO sticks (known as ‘stix’) whose production was ceased as of March due to their fiscal reclassification as cigarettes. However, legitimate cigarette sales were negatively affected by a decline in the smoking population as well as an illicit trade (and other non duty paid) market that remains strong. Value sales increased ahead of volume sales due to price increases during the second half of the year well ahead of the increase in value added tax as per 1 January 2007. There were no tobacco increases during 2006.
Strong growth for low-price manufacturer brands
Within the cigarettes sector, strong growth was posted by manufacturer economy brands, in particular Reemtsma’s JPS, BAT’s Pall Mall and Philip Morris’ L&M, taking share especially from retailer private label products. However, premium brands also lost share, with particularly strong losses for sector leader Marlboro. However, other leading premium brands such as Reemtsma’s West and BAT’s Gauloises Blondes also lost share.
RYO tobacco declines strongly
RYO tobacco saw a strong decline in sales due to the cessation of sticks production, although supplies at retailers lasted much longer than initially expected, well into October/November. As a result, no clear patterns emerged as to which product group would emerge as a winner from the cessation of production of RYO sticks. Manufacturers launched a number of new products within the RYO tobacco sector, most notably volume tobaccos. The pipe tobacco subsector increased in double-digit volume terms in 2006, although this was solely due to water pipe tobacco, while traditional pipe tobacco continued to decline.
Eco cigarillos boom, traditional cigars and cigarillos down
Traditional cigars and cigarillos continued to decline in 2006. However, with strong double-digit growth, the cigarillo subsector was by far the strongest. This was solely attributed to further share gains of eco cigarillos (ie cigarettes made with tobacco leaf rather than paper). Eco cigarillos are expected to pick up a large part of previous smokers of RYO sticks in 2007.
Cigarettes to regain some lost share in 2007 and 2008
The boom in eco cigarillos will come to an abrupt halt in 2008 when eco cigarillos will be taxed as cigarettes, as parliament finally closed this tax loophole in September 2006. Combined with the disappearance of RYO sticks in 2007, cigarettes is set to regain some of the share it lost over the past five years to those two alternatives, although this will be dampened by an expected even faster rise in sales of illicit cigarettes, as well as an expected further decline in the smoking population.
Major legislative changes in 2007
Tobacco sales in 2007 will be affected by the ban on advertising in print, on radio and over the internet which became effective on 27 December 2006. Secondly, as of January, purchases via vending machines can only be made with Geldkarte electronic purse cards to enable verification of the purchaser’s age. Finally, legislation on a ban on smoking in public places was approved by the Council of Health Ministers in April and will become effective in August.
Table of contents
TOBACCO IN GERMANY : MARKET INSIGHT
EXECUTIVE SUMMARY
Further decline in cigarette sales, but rate of decline slowing
Strong growth for low-price manufacturer brands
RYO tobacco declines strongly
Eco cigarillos boom, traditional cigars and cigarillos down
Cigarettes to regain some lost share in 2007 and 2008
Major legislative changes in 2007
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
Litigation
Taxation and Duty Levies
Table 3 Cigarettes Taxation and Duty Levies 2001-2006
Table 4 Cigars Taxation and Duty Levies 2002-2006
Table 5 Fine Cut Tobacco Taxation and Duty Levies 2002-2006
Table 6 Pipe Tobacco Taxation and Duty Levies 2002-2006
Table 7 Average Cigarette Pack Price Breakdown: Brand Examples 2006
Table 8 Average Cigarette Packet Price Breakdown: Brand Examples 2006
Production/Imports/Exports
Table 9 Trade Statistics – Cigarettes
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 10 Deaths by Diseases of the Respiratory System 2001-2006
Table 11 Deaths from Heart Disease 2001-2006
Table 12 Deaths from Lung Cancer 2001-2006
Table 13 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 14 Sales of Tobacco by Sector: Volume 2001-2006
Table 15 Sales of Tobacco by Sector: Value 2001-2006
Table 16 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 17 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 18 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 19 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 20 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 21 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 22 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - GERMANY
BRITISH AMERICAN TOBACCO (GERMANY) GMBH - TOBACCO - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco (Germany) GmbH: Key Facts
Summary 3 British American Tobacco (Germany) GmbH: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 4 British American Tobacco (Germany) GmbH: Cigarette Production in Sticks (billion)
COMPETITIVE POSITIONING
Summary 5 British American Tobacco (Germany) GmbH: Competitive Position 2006
GALLAHER GROUP PLC - TOBACCO - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Gallaher Germany GmbH: Key Facts
Summary 7 Gallaher Germany: Key Statistics Cigarettes Sticks (billion)
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 8 Gallaher Germany: Competitive Position 2006
HEINTZ VAN LANDEWYCK SARL - TOBACCO - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Heintz van Landewyck Sarl: Key Facts
Summary 10 Heintz van Landewyck Sarl: Key Statistics
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 11 Heintz van Landewyck Sarl: Production of Fine Cut, Equivalent in Cigarette Sticks (billion)
COMPETITIVE POSITIONING
Summary 12 Heintz van Landewyck: Competitive Position
JAPAN TOBACCO INTERNATIONAL GERMANY GMBH - TOBACCO - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Japan Tobacco International Germany GmbH: Key Facts
Summary 14 Japan Tobacco International Germany GmbH: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 15 Japan Tobacco International Germany GmbH: Cigarette Production in Sticks (billion)
COMPETITIVE POSITIONING
Summary 16 Japan Tobacco International Germany GmbH: Competitive Position 2006
PHILIP MORRIS COS INC - TOBACCO - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 17 Philip Morris GmbH: Key Facts
Summary 18 Philip Morris GmbH: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 19 Philip Morris: Cigarette Production in Sticks (billion)
COMPETITIVE POSITIONING
Summary 20 Philip Morris GmbH: Competitive Position 2006
REEMTSMA CIGARETTENFABRIKEN GMBH - TOBACCO - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 21 Reemtsma Cigarettenfabriken GmbH: Key Facts
Summary 22 Reemtsma Cigarettenfabriken GmbH: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 23 Reemtsma Cigarettenfabriken GmbH: Cigarette Production in Sticks (billion)
COMPETITIVE POSITIONING
Summary 24 Reemtsma Cigarettenfabriken GmbH: Competitive Position 2006
CIGARETTES IN GERMANY
HEADLINES
TRENDS
Illicit trade
Price Bands
Filter Splits
Table 23 Slims/superslims Penetration
Pack Splits
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 24 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 25 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 26 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 27 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 28 Sales of Cigarettes by Price Band: %Volume Breakdown 2001-2006
Table 29 Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2001-2006
Table 30 Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2001-2006
Table 31 Sales of Cigarettes by Filter Vs Non-filter 2001-2006
Table 32 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2001-2006
Table 33 Sales of Cigarettes by Length 2001-2006
Table 34 Sales of Cigarettes by Pack Size 2001-2006
Table 35 Sales of Cigarettes by Pack Type 2001-2006
Table 36 Cigarettes Company Shares 2002-2006
Table 37 Cigarettes Brand Shares 2003-2006
Table 38 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 39 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 40 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 41 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 42 Forecast Sales of Cigarettes by Price Band: %Volume Breakdown 2006-2011
Table 43 Forecast Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2006-2011
Table 44 Forecast Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2006-2011
Table 45 Forecast Sales of Cigarettes by Filter Vs Non-filter 2006-2011
Table 46 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2006-2011
Table 47 Forecast Sales of Cigarettes by Length 2006-2011
Table 48 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 49 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 50 Sales of Cigars by Subsector: Volume 2001-2006
Table 51 Sales of Cigars by Subsector: Value 2001-2006
Table 52 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 53 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 54 Company Shares of Cigars Exluding Cigarillos 2002-2006
Table 55 Brand Shares of Cigars Exluding Cigarillos 2003-2006
Table 56 Company Shares of Cigarillos 2002-2006
Table 57 Brand Shares of Cigarillos 2003-2006
Table 58 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 59 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 60 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 61 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO IN GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 62 Sales of Smoking Tobacco by Subsector: Volume 2001-2006
Table 63 Sales of Smoking Tobacco by Subsector: Value 2001-2006
Table 64 Sales of Smoking Tobacco by Subsector: % Volume Growth 2001-2006
Table 65 Sales of Smoking Tobacco by Subsector: % Value Growth 2001-2006
Table 66 Company Shares of RYO Tobacco 2002-2006
Table 67 Brand Shares of RYO Tobacco 2003-2006
Table 68 Company Shares of Pipe Tobacco 2002-2006
Table 69 Brand Shares of Pipe Tobacco 2003-2006
Table 70 Forecast Sales of Smoking Tobacco by Subsector: Volume 2006-2011
Table 71 Forecast Sales of Smoking Tobacco by Subsector: Value 2006-2011
Table 72 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2006-2011
Table 73 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2006-2011