Tobacco in Ireland
Euromonitor International's Tobacco in Ireland 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: 82 | Publication date: Sep 2009
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Executive summary
Restrictive legislation over the review period lowers tobacco usage
The Irish tobacco industry was marked by strict government legislation over the review period, leading to significant reductions of cigarette and cigar volume. In 2004, Ireland became the first EU nation to implement a smoking ban leading to a sharp volume decrease across every tobacco category. This was followed by notable increases in taxes each year between 2006 and 2008. Also, by increasing the minimum price of cigarettes in 2007 and then again in 2008, the government further affected the dynamics of the industry. In May 2007 it became illegal to sell packs of less than 20 cigarettes, helping to push availability of this vice away from the grasp of minors. In fact, the only restrictive legislation in Ireland that may actually benefit the tobacco industry is the limit of nicotine replacement therapies (such as gum and patches) to pharmacy outlets.
The death of the Celtic Tiger slows cigar and cigarette sales, but bolsters RYO
Following a decade of incredible economic growth, Ireland entered a recession in 2008 for the first time in 25 years. Irish consumers have become more mindful of their disposable income and as a result many smokers decided that this would be the year to quit – or at least smoke less than before. Hardest hit in terms of decreases in volume sales was the cigar category, however demand in the cigarette market was certainly affected as well. Making matters worse for cigarette smokers with tighter disposable incomes, the government increased excise tax by 30 cents in December 2007, 50 cents in October 2008 and raised the minimum price of cigarettes twice in the past two years. The tighter economy did however benefit both the RYO tobacco category and the illicit cigarette trade, as many regular cigarette smokers directed their purchases here instead.
Slipping from increases in competition in 2008, Gallaher still dominates sales
The Irish tobacco industry is dominated by three major players: Gallaher (Dublin), Player & Sons and P J Carroll & Co. Gallaher remains by far the market leader, with a share almost equivalent to the other two competitors combined. However 2008 was a bad year for Gallaher, as increased competition from Player & Sons’ brands began to erode sales of this market leader. Although paling in comparison to the three major competitors, Ampersand increased its presence in the cigar category by nearly 700% after taking over the distribution rights of the Ritmeester brand from Gallaher.
With uniform pricing across all outlets, convenience stores remain on top
For the most part, prices for identical brands of cigarettes, cigars and smoking tobacco are uniform across distribution channels in Ireland (with the exception of vending machines charging a premium). Accordingly, convenience stores account for the majority of tobacco sales in Ireland. This proportion was further increased in 2008, with major chains such as Spar, Centra and Londis increasing the number of store locations across the country. Conversely, tobacco specialists saw a decrease in sales as these outlets typically specialise in premium priced brands, which fared poorly in 2008 due to the recession.
Future legislation set to severely impact the competiveness of the market
In July 2009, new legislation will severely affect the performance of the tobacco industry. After this date, retailers will have to remove all POS displays, taking away the last B2C marketing opportunity for manufacturers. Furthermore, retailers will have to remove the actual products from sight of consumers, placing the goods in a closed container/dispenser system. This will be an incredible impediment for the launch of new products, and ultimately attenuate variations in market share.
Table of contents
TOBACCO IN IRELAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Restrictive legislation over the review period lowers tobacco usage
The death of the Celtic Tiger slows cigar and cigarette sales, but bolsters RYO
Slipping from increases in competition in 2008, Gallaher still dominates sales
With uniform pricing across all outlets, convenience stores remain on top
Future legislation set to severely impact the competiveness of the market
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Cigarette Smoking Frequency as a Percentage of Total Smokers
Table 2 Smoking Prevalence in Population 2003-2008
Table 3 Number of Smokers by Gender 2003-2008
Death by Cause
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/ FCTC ratification
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 Cigarettes Taxation and Duty Levies 2003-2008
Table 5 Average Cigarette Pack Price Breakdown as of November 2007
PRODUCTION/IMPORTS/EXPORTS
Table 6 Trade Statistics – Cigarettes
MARKET INDICATORS
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 - IRELAND
CARROLL & CO PLC, P J - TOBACCO - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Carroll & Co Plc, P J: Key Facts
Summary 3 Carroll & Co Plc, P J: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 Carroll & Co Plc, P J: Competitive Position 2008
GALLAHER (DUBLIN) LTD - TOBACCO - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Gallaher (Dublin) Ltd: Key Facts
Summary 6 Gallaher (Dublin) Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Gallaher (Dublin) Ltd: Competitive Position 2008
PLAYER & SONS, JOHN - TOBACCO - IRELAND
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Player & Sons, John: Key Facts
COMPANY BACKGROUND
PRODUCTION
Summary 9 Player & Sons, John: Production Statistics by Factory
COMPETITIVE POSITIONING
Summary 10 Player & Sons, John: Competitive Position 2008
CIGARETTES IN IRELAND
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 11 Cigarettes - New Product Launches 2008
PROSPECTS
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 IRELAND
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 IRELAND
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 58 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 59 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 60 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 61 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 62 Company Shares of RYO Tobacco 2004-2008
Table 63 Brand Shares of RYO Tobacco 2005-2008
Table 64 Company Shares of Pipe Tobacco 2004-2008
Table 65 Brand Shares of Pipe Tobacco 2005-2008
Table 66 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 67 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 68 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013
SMOKELESS TOBACCO IN IRELAND
HEADLINES