Tobacco in Iran
Euromonitor International's Tobacco in Iran 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: 50 | Publication date: Mar 2007
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Executive summary
Growth continues due to ITC agreements with global players
There was good growth in tobacco sales in 2005, despite the introduction of more restrictive legislation on smoking. This was chiefly due to a series of agreements between state-owned Iranian Tobacco Co (ITC) and a number of global players such as Japan Tobacco Inc (JTI) and British American Tobacco Plc (BAT), which facilitated imports and domestic production for leading global brands. This reduced costs and cushioned Iranian tobacco against ongoing high inflation.
Cigarettes dynamic due to greater presence
Cigarettes proved most dynamic in 2005, largely due to ITC’s production and import agreements with players such as JTI and BAT. Pipe tobacco is the only other major tobacco product present in the country and suffered from sharper government legislation than seen for cigarettes. Nonetheless, pipe tobacco also achieved growth in volume and current value terms in 2005, with the smoking of galyoun pipes being increasingly fashionable amongst young consumers.
Foreign players dominate but assist growth in ITC’s share
Foreign players dominate volume sales of both cigarettes and pipe tobacco. Cigarettes is led by global giants BAT and JTI, although ITC saw the strongest gain in volume share due to its production of brands under joint ventures with these leading global players. Meanwhile, pipe tobacco is led by regional specialists focused on molasses tobacco for smoking in traditional galyoun pipes, with Middle East Tobacco Co from Jordan in the lead.
Shift from street sales due to legislation
The government banned the sale of cigarettes via kiosks and street vendors in 2003. This had little impact on newsagent-tobacconists/kiosks, which continued to gain share throughout the review period as the law was not fully enforced. Street vendors however saw a sharp loss in share. This in turn benefited the other major distribution channels, including supermarkets/hypermarkets, independent food stores and tobacconists/specialists. Independent food stores was the leading distribution channel for cigarettes in 2005, while tobacconists/specialists was the leading channel for sales of pipe tobacco.
Further strong growth for forecast period with consumers trading up
There is expected to be dynamic growth for tobacco during the forecast period. Cigarettes is expected to see the strongest growth, with consumers trading up from contraband to retail purchases, from economy to mid-priced and premium brands and from single sticks purchased from street vendors to whole packs purchased from organised retail outlets.
The government appears to be moving towards more stringent legislative control over smoking, with higher penalties and a ban on public smoking. However, legislation is frequently ignored or only sporadically enforced in Iraq and thus the impact of this legislation will be outweighed by the shift from contraband to retail sales. Some health concerns may arise concerning smoking following on from religious condemnation on health grounds at the end of the review period. However, smoking galyoun pipes has a long tradition in the country and with no tar and low nicotine levels, most regard the tobacco smoked in such pipes as harmless. The impact of health concerns on cigarette sales will also not be strong enough to outweigh the expected shift from contraband to retail.
Table of contents
TOBACCO IN IRAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Growth continues due to ITC agreements with global players
Cigarettes dynamic due to greater presence
Foreign players dominate but assist growth in ITC’s share
Shift from street sales due to legislation
Further strong growth for forecast period with consumers trading up
KEY TRENDS AND IMPACT ASSESSMENT
Smoking Population
Legislation
Legislation: Tar
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Comprehensive National Anti-Tobacco Products and Control Law
Litigation
Taxation and Duty Levies
Table 1 Taxation and Duty Levies
Contraband (Cigarettes)
Production/Imports/Exports
Table 2 Trade Statistics – Cigarettes
Table 3 Trade Statistics – Manufactured Tobacco Products
Table 4 Trade Statistics – Raw Tobacco
The Role and Effect of Cannabis/Marijuana
Cigarettes: Price Bands
Cigarettes: Filter Splits
Cigarettes: Pack Splits
High inflation fails to impact on tobacco
Legislation limits distribution but has little effect
MARKET INDICATORS
Table 5 Contraband Cigarettes Penetration Estimate 2000-2005
MARKET DATA
Table 6 Retail Sales of Tobacco by Sector: Value 2000-2005
Table 7 Retail Sales of Tobacco by Sector: Volume 2000-2005
Table 8 Retail Sales of Tobacco by Sector: % Value Growth 2000-2005
Table 9 Retail Sales of Tobacco by Sector: % Volume Growth 2000-2005
Table 10 Retail Sales of Cigarettes by Distribution Format: % Analysis 2000/2005
Table 11 Forecast Retail Sales of Tobacco by Sector: Volume 2005-2010
Table 12 Forecast Retail Sales of Tobacco by Sector: Value 2005-2010
Table 13 Forecast Retail Sales of Tobacco by Sector: % Volume Growth 2005-2010
Table 14 Forecast Retail Sales of Tobacco by Sector: % Value Growth 2005-2010
CIGARETTES
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 15 Retail Sales of Cigarettes by Tar Level: Volume 2000-2005
Table 16 Retail Sales of Cigarettes by Tar Level: Value 2000-2005
Table 17 Retail Sales of Cigarettes by Tar Level: % Volume Growth 2000-2005
Table 18 Retail Sales of Cigarettes by Tar Level: % Value Growth 2000-2005
Table 19 Cigarettes Company Shares 2001-2005
Table 20 Cigarettes Brand Shares 2002-2005
Table 21 Forecast Retail Sales of Cigarettes by Tar Level: Volume 2005-2010
Table 22 Forecast Retail Sales of Cigarettes by Tar Level: Value 2005-2010
Table 23 Forecast Retail Sales of Cigarettes by Tar Level: % Volume Growth 2005-2010
Table 24 Forecast Retail Sales of Cigarettes by Tar Level: % Value Growth 2005-2010
Table 25 Retail Sales of Cigarettes by Price Band: %Volume Breakdown 2000-2005
Table 26 Forecast Retail Sales of Cigarettes by Price Band: %Volume Breakdown 2005-2010
Table 27 Retail Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2000-2005
Table 28 Forecast Retail Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2005-2010
Table 29 Retail Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2000-2005
Table 30 Forecast Retail Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2005-2010
Table 31 Retail Sales of Cigarettes by Filter Vs Non-filter 2000-2005
Table 32 Retail Sales of Filter Cigarettes by Carbon Vs Non-carbon 2000-2005
Table 33 Retail Sales of Cigarettes by Length 2000-2005
Table 34 Retail Sales of Cigarettes by Pack Size 2000-2005
Table 35 Retail Sales of Cigarettes by Pack Ttype 2000-2005
CIGARS
Headlines
Trends
Competitive Landscape
Prospects
SMOKING TOBACCO
Headlines
Trends
Competitive Landscape
Prospects
Sector Data
Table 36 Retail Sales of Smoking Tobacco by Subsector: Value 2000-2005
Table 37 Retail Sales of Smoking Tobacco by Subsector: Volume 2000-2005
Table 38 Retail Sales of Smoking Tobacco by Subsector: % Value Growth 2000-2005
Table 39 Retail Sales of Smoking Tobacco by Subsector: % Volume Growth 2000-2005
Table 40 Retail Company Shares of Pipe Tobacco 2001-2005
Table 41 Retail Brand Shares of Pipe Tobacco 2002-2005
Table 42 Forecast Retail Sales of Smoking Tobacco by Subsector: Value 2005-2010
Table 43 Forecast Retail Sales of Smoking Tobacco by Subsector: Volume 2005-2010
Table 44 Forecast Retail Sales of Smoking Tobacco by Subsector: % Value Growth 2005-2010
Table 45 Forecast Retail Sales of Smoking Tobacco by Subsector: % Volume Growth 2005-2010
IRANIAN TOBACCO CO
Strategic Direction
Key Facts
Summary 1 Iranian Tobacco Co: Key Facts
Company Background
Production by Factory
Summary 2 Iranian Tobacco Co: Production Statistics by Factory
Competitive Positioning
Summary 3 Iranian Tobacco Co: Competitive Position 2005
MIDDLE EAST TOBACCO CO
Strategic Direction
Key Facts
Summary 4 Middle East Tobacco Co: Key Facts
Company Background
Production by Factory
Competitive Positioning
Summary 5 Middle East Tobacco Co: Competitive Position 2005
DEFINITIONS