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.
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: 93 | Publication date: Oct 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
Volume sales of cigarettes continue to suffer from the high tax burden
Volume sales of cigarettes saw yet another decline in the low single digits in 2007, despite the influx of additional users following the phasing out of RYO sticks from smoking tobacco. However, with only less than a quarter of previous RYO smokers switching to cigarettes taxed in Germany, cigarette volume sales continued to suffer from a further shift in purchases towards cigarettes not taxed in Germany – either sold illegally, or legal car boot imports.
Economy cigarettes makes further strong gains
Within cigarettes, the economy segment posted double-digit volume growth in 2007, brought about by further share gains of economy brands, in particular Reemtsma Cigarettenfabriken GmbH’s John Player Special, British American Tobacco (Germany) GmbH’s Pall Mall and Philip Morris GmbH’s L&M brands, which cannibalised sales of premium brands, but took also some share from private label cigarettes. The branded economy segment was strengthened with further new launches and re-launches, such as Reemtsma’s Route 66 and Philip Morris’ Chesterfield, while it was also the main marketing focus for key players, especially Reemtsma.
Unit prices pushed by higher VAT and selected price increases
Cigarette unit prices saw a slight increase in 2007, despite the share gains of economy brands, and without the introduction of new tobacco-specific taxes. In part, this was due to the higher VAT, although some manufacturers had already increased prices late in 2006; therefore affecting year-on-year value comparisons for only part of the year. Secondly, manufacturers started to push through selected price increases at the end of 2007 (continuing in 2008), especially on economy brands, big packs and niche products.
RYO tobacco feels the impact of withdrawal of RYO sticks
RYO tobacco saw a double-digit decline in 2007, as the phasing out of RYO sticks left a hole in the market which was not compensated for by increased sales of other RYO products, such as volume tobacco or traditional fine cuts. The pipe tobacco category saw a second consecutive year of strong double-digit growth, although this was mainly due to the strong growth of economy priced American Blend pipe tobacco, aimed at RYO users. Created by Philip Morris, this segment was boosted by a number of new launches at the end of 2007. On a much lesser scale, water pipe tobacco also enjoyed strong growth, while traditional pipe tobacco saw a continuation of a long term decline.
Eco cigarillos enjoy possible last year of strong growth; traditional cigars and cigarillos decline
Overall, cigars and cigarillos saw a double-digit volume increase in 2007, brought about by yet another year of double-digit growth in eco cigarillos (cigarettes made with tobacco leaf rather than paper), which more than offset the continuing single-digit decline of traditional cigarillos and cigars. Eco cigarillos benefited from the switch to cigarillos of previous smokers of RYO sticks. However, the strong growth of eco cigarillos could come to an end in 2008, as tightened taxation rules require manufacturers to modify eco cigarillos and make them less similar to cigarettes.
Anti-smoking momentum intensifies
Acceptance of smoking in society was seen to deteriorate further in 2007, and more anti-smoking legislation was adopted and/or implemented. 2007 was the first full year of new advertising restrictions, including a ban on print and on-line advertising, introduced at the end of 2006, although poster advertising was still allowed. Vending purchases were only possible with age verification, resulting in a significant drop in vending sales. Lastly, a ban on smoking in restaurants and bars was approved by all federal states, which in 2007 became effective in three states (Baden Württemberg, Hesse and Hamburg), with all others following in 2008.
Table of contents
TOBACCO IN GERMANY : MARKET INSIGHT
EXECUTIVE SUMMARY
Volume sales of cigarettes continue to suffer from the high tax burden
Economy cigarettes makes further strong gains
Unit prices pushed by higher VAT and selected price increases
RYO tobacco feels the impact of withdrawal of RYO sticks
Eco cigarillos enjoy possible last year of strong growth; traditional cigars and cigarillos decline
Anti-smoking momentum intensifies
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: EU Directives
Minimum legal smoking age
Tar levels
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies
Table 4 Average Cigarette Packet Price Breakdown : Brand Examples
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes
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 - 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 2007
HEINTZ VAN LANDEWYCK SARL - TOBACCO - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Heintz van Landewyck Sarl: Key Facts
Summary 7 Heintz van Landewyck Sarl: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 8 Heintz van Landewyck : Competitive Position 2007
PHILIP MORRIS GMBH - TOBACCO - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Philip Morris GmbH: Key Facts
Summary 10 Philip Morris GmbH: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 11 Philip Morris GmbH : Competitive Position 2007
POSCHL TABAK GMBH & CO KG - TOBACCO - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Poschl Tabak Gmbh & Co KG: Key Facts
Summary 13 Poschl Tabak Gmbh & Co KG: Key Statistics
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 14 Poschl Tabak Gmbh & Co KG: Competitive Position 2007
REEMTSMA CIGARETTENFABRIKEN GMBH - TOBACCO - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 15 Reemtsma Cigarettenfabriken GmbH: Key Facts
Summary 16 Reemtsma Cigarettenfabriken GmbH: Operational Indicators (£ million)
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 17 Reemtsma Cigarettenfabriken GmbH: Competitive Position 2007
VON EICKEN GMBH, JOH WILH - TOBACCO - GERMANY
STRATEGIC DIRECTION
KEY FACTS
Summary 18 Joh Wilh von Eicken GmbH: Key Facts
Summary 19 Joh Wilh von Eicken GmbH: Key Statistics
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
CIGARETTES IN GERMANY
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 20 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 21 Cigarettes: New Product Launches
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 GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 22 Cigars: New Product Launches
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 GERMANY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 23 Smoking Tobacco: New Product Launches
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