Tobacco in Hong Kong, China
Euromonitor International's Tobacco in Hong Kong, China 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: 69 | Publication date: Sep 2009
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Executive summary
Tougher legislation dents cigarette sales
Stricter legislation in the form of a ban on smoking in public places in 2007 led to yet another year of declining cigarette volume sales. The ban is set to become absolute from July 2009 onwards, encompassing popular smoking locations such as restaurants, bars and mah-jong parlours. Smoking prevalence also decreased over the review period. Limited time and places available has led smokers to smoke more quickly, with some smoking just half a cigarette at a time. In 2009 the government increased taxes on cigarettes by 50%, which is expected to be a further blow to the tobacco industry in Hong Kong over the forecast period.
Mid-tar category dominates, but low-tar the best performing
Mid-tar brands continued to dominate cigarette sales in Hong Kong in 2008, accounting for more than 55% of sales during the year. That said, mid-tar and high-tar cigarettes both registered a decline in 2008 as consumers increasingly shifted towards lower-tar products, which achieved positive growth. With male smokers opting for lower-tar alternatives, the growing demographic of female and young smokers has also fuelled growth of low-tar products. Many consumers perceive lower-tar cigarettes as being healthier than their high-tar counterparts.
Philip Morris Asia continues to dominate
Philip Morris Asia remained the dominant player in cigarettes in 2008. The company owns the leading brand, Marlboro, which accounted for nearly half of all cigarette sales in 2008. Marlboro has captured a loyal customer base through its strong and well-established brand name as well as its wide distribution network throughout Hong Kong. To further strengthen its leading position, Philip Morris Asia launched its new brand L&M in the second half of 2008 to capture more consumers.
Convenience stores the leading distribution channel
There are more than 1,100 convenience stores in Hong Kong, spread throughout the city state. Thus, tobacco manufacturers know it is extremely important to get their products into this channel. Over 60% of cigarettes were sold through convenience stores in 2008, with newsagent-tobacconists/kiosks being the other main distribution channel. Cigars, on the other hand, are mainly sold through tobacco specialist shops as these are premium products and attract a select clientele. Department stores and hotels/restaurants/bars also account for a major chunk of cigar sales.
Volume sales set to decline further
The forecast period is expected to see a further decline in volume sales of cigarettes. Older smokers will continue to cut down or give up altogether, while new and younger smokers are not expected to smoke as often as previously heavy smokers. Smoking restrictions will become tougher in 2009 due to the implementation of a smoking ban in restaurants and bars from July 2009 onwards and an increase in cigarette taxes, which will deter some from smoking. However, growing demand for premium cigarettes from women and some younger smokers should drive positive value growth in the sector over the forecast period.
Table of contents
TOBACCO IN HONG KONG, CHINA : MARKET INSIGHT
EXECUTIVE SUMMARY
Tougher legislation dents cigarette sales
Mid-tar category dominates, but low-tar the best performing
Philip Morris Asia continues to dominate
Convenience stores the leading distribution channel
Volume sales set to decline further
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/ FCTC ratification
Country-specific legislation:
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 Pack Price Breakdown: Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 5 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 6 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2003-2008
Table 8 Sales of Tobacco by Sector: Value 2003-2008
Table 9 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 10 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 11 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 12 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 13 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - HONG KONG, CHINA
BRITISH AMERICAN TOBACCO CO (HONG KONG) LTD - TOBACCO - HONG KONG, CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco Co (Hong Kong) Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 British American Tobacco Co (Hong Kong) Ltd: Competitive Position 2008
JAPAN TOBACCO INTERNATIONAL (CHINA) LTD - TOBACCO - HONG KONG, CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Japan Tobacco International (China) Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Japan Tobacco International (China) Ltd: Competitive Position 2008
NANYANG BROS TOBACCO CO LTD - TOBACCO - HONG KONG, CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Nanyang Bros Tobacco Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Nanyang Brothers Tobacco Company Limited: Competitive Position 2008
PHILIP MORRIS ASIA LTD - TOBACCO - HONG KONG, CHINA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Philip Morris Asia Ltd: Key Facts
Summary 9 Philip Morris Asia Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 10 Philip Morris Asia Ltd: Competitive Position 2008
CIGARETTES IN HONG KONG, CHINA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
Summary 11 Cigarettes - New Product Launches 2008
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 12 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 15 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 16 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 17 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 18 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 19 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 20 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 21 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 22 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 23 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 24 Sales of Cigarettes by Length 2003-2008
Table 25 Sales of Cigarettes by Regular/Slim 2006-2008
Table 26 Sales of Cigarettes by Pack Size 2003-2008
Table 27 Sales of Cigarettes by Pack Type 2003-2008
Table 28 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 29 Cigarettes Company Shares 2004-2008
Table 30 Cigarettes Brand Shares 2005-2008
Table 31 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 36 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 37 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 39 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 40 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 41 Forecast Sales of Cigarettes by Length 2008-2013
Table 42 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 43 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 44 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS IN HONG KONG, CHINA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 45 Sales of Cigars by Subsector: Volume 2003-2008
Table 46 Sales of Cigars by Subsector: Value 2003-2008
Table 47 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 48 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 49 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 50 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 51 Company Shares of Cigarillos 2004-2008
Table 52 Brand Shares of Cigarillos 2005-2008
Table 53 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 54 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 55 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 56 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 57 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO IN HONG KONG, CHINA
HEADLINES
TRENDS
DISTRIBUTION
PROSPECTS
SMOKELESS TOBACCO IN HONG KONG, CHINA
HEADLINES