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.

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Executive summary

Downturn in volume sales continues

Volume sales of tobacco products in Germany continued to register significant declines in 2008 as a result of continued pressure deriving from a combination of the smoking ban, high unit prices and generally increased health awareness, all of which further lowered smoking prevalence. High levels of illicit trade and legitimate cross border sales further contributed to the legal market’s overall decline, resulting in additional turnover losses, especially in the cigarettes sector.

Market segments impacted differently

Least affected by volume declines was RYO tobacco, often acting as a value-for-money alternative to cigarettes for many smokers. Worst affected was cigarillos after a change in taxation on 1 January 2008 ruled that the previously strong performing eco-cigarillos be taxed at the same rate as cigarettes. Sales of cigars were also particularly affected by the smoking ban, which diminished the largest smoking platforms for cigars - restaurants and bars. Value gains were achieved in the two biggest segments, mid-tar cigarettes and RYO tobacco, as a result of successfully implemented unit price increases.

Pseudo pipe tobaccos faced with change in taxation

As of July 2008, the German government ruled that the so-called pseudo pipe tobaccos be taxed at the same rate as RYO tobacco. This change in taxation ended two consecutive years of strong performance for pseudo pipe tobaccos, which had been introduced in 2006 by manufacturers of both pipe tobacco and RYO tobacco as a cheap low-taxed alternative to standard RYO tobacco. Subsequently, all pseudo pipe tobacco brands vanished from the market in the second half of 2008, brining an end to the strong growth of pipe tobacco in recent years.

Economy brands continue to post strongest growth

In light of high unit prices and the changes in tax on cigarillos and pseudo pipe tobaccos, which further reduced cheap tobacco alternatives, economy brands continued to register a strong performance in 2008 in those sectors in which they are present – mainly cigarettes, RYO tobacco and cigarillos. The best performing brand was Reemtsma’s JPS, which climbed to become the second leading brand behind Philip Morris’ global flagship brand Marlboro in 2008, underpinned by heavy marketing efforts. BAT’s economy brand Pall Mall and Philip Morris’ L&M also registered significant share gains in 2008 as consumers remained price-sensitive.

Supermarkets/hypermarkets and forecourt retailers continue to gain share

Both channels saw share gains in 2008 as consumer demand for cheaper branded products, which are mainly distributed through supermarkets/hypermarkets and forecourt retailers, increased. The gains were strongest in cigarettes as economy brands posted the largest volumes. The legislative age control on vending machines gave further impetus as consumers now prefer to buy stocks of cigarettes when shopping or refuelling to avoid the potential hassle with vending machine purchases.

Tobacco products in Germany forecast to largely register declines

Over the forecast period sales of tobacco products are expected to be significantly impacted by the effects of the smoking ban, unit price increases resulting from higher taxes and production costs, as well as high levels of illicit trade. An increasingly anti-smoking environment, fuelled by strengthened health concerns and government campaigns, is likely to result in lower smoking prevalence and put further pressure on volume sales. Most categories are expected to register significant volume and value declines, with only cigarillos and RYO tobacco expected to be exceptions due to their unique positioning as cheap alternatives to cigarettes.

Table of contents

TOBACCO IN GERMANY : MARKET INSIGHT

EXECUTIVE SUMMARY

Downturn in volume sales continues

Market segments impacted differently

Pseudo pipe tobaccos faced with change in taxation

Economy brands continue to post strongest growth

Supermarkets/hypermarkets and forecourt retailers continue to gain share

Tobacco products in Germany forecast to largely register declines

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

Country-specific 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 4 Taxation and Duty Levies

Table 5 Average Cigarette Pack Price Breakdown : Brand Examples

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 - 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

Summary 4 British American Tobacco (Germany) GmbH: Production Statistics 2008

COMPETITIVE POSITIONING

Summary 5 British American Tobacco (Germany) GmbH: Competitive Position 2008

PHILIP MORRIS GMBH - TOBACCO - GERMANY

STRATEGIC DIRECTION

KEY FACTS

Summary 6 Philip Morris GmbH: Key Facts

Summary 7 Philip Morris GmbH: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 8 Philip Morris GmbH: Production Statistics 2008

COMPETITIVE POSITIONING

Summary 9 Philip Morris GmbH: Competitive Position 2008

POSCHL TABAK GMBH & CO KG - TOBACCO - GERMANY

STRATEGIC DIRECTION

KEY FACTS

Summary 10 Pöschl Tabak GmbH & Co KG: Key Facts

Summary 11 Pöschl Tabak GmbH & Co KG: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

Summary 12 Pöschl Tabak GmbH & Co KG: Production Statistics 2008

COMPETITIVE POSITIONING

Summary 13 Pöschl Tabak GmbH & Co KG: Competitive Position 2008

REEMTSMA CIGARETTENFABRIKEN GMBH - TOBACCO - GERMANY

STRATEGIC DIRECTION

KEY FACTS

Summary 14 Reemtsma Cigarettenfabriken GmbH: Key Facts

Summary 15 Reemtsma Cigarettenfabriken GmbH: Operational Indicators

COMPANY BACKGROUND

PRODUCTION BY FACTORY

Summary 16 Reemtsma Cigarettenfabriken GmbH: Production Statistics 2008

COMPETITIVE POSITIONING

Summary 17 Reemtsma Cigarettenfabriken GmbH: Competitive Position 2008

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: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 20 Joh Wilh von Eicken GmbH: Competitive Position 2008

CIGARETTES IN GERMANY

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

Summary 21 Cigarettes: New Product Launches 2008

PROSPECTS

SECTOR BACKGROUND

Cigarettes: Illicit trade

Cigarettes: Price Bands

Summary 22 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 GERMANY

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

Summary 23 Cigars: New Product Launches 2008

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 GERMANY

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

Summary 24 Smoking Tobacco: New Product Launches 2008

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

SMOKELESS TOBACCO IN GERMANY

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS