Tobacco in Italy
Euromonitor International's Tobacco in Italy 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: 86 | Publication date: Sep 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
Cigarettes volume sales decline in line with anti-smoking measures
The Italian tobacco market recorded a relatively poor performance in 2007, with cigarettes, the largest sector by far, showing a decline in volume terms. This decline, which came on the back of a mixed performance over the review period as a whole, reflected the success of government anti-smoking measures such as the national smoking ban, tobacco price increases and anti-smoking health campaigns. Cigars and smoking tobacco both showed healthy volume growth in 2007, but compared to cigarettes, they continued to play a marginal role in the tobacco market as a whole.
Price increases drive growth in cigarettes current value sales
All tobacco sectors showed healthy growth in current value terms in 2007. In the case of cigars and smoking tobacco, current value growth was underpinned by steady growth in volume terms. In cigarettes, however, which showed a decline in volume terms, current value growth was largely due to a steep increase in average unit prices. This increase was in turn attributable to the Italian government’s efforts to curb smoking rates in the country, which included higher taxation on tobacco products and an increase in the minimum price for cigarettes.
Italian consumers continue to shift to economy brands and lower tar cigarettes
During the review period, regular increases in the cost of tobacco products, particularly cigarettes, drove many Italians to switch to economy brands. This trend, which really became apparent during the difficult economic conditions experienced over 2003-2004, continued to gain momentum in 2007. At the same time, anti-smoking campaigns by the government and various lobby groups led to greater awareness of the health risks associated with smoking, driving many smokers to switch to lower tar cigarettes brands. In response to this trend, towards the end of the review period cigarette manufacturers continued to expand the range of low and ultra-low tar variants on offer to Italian consumers.
Tax increases continue to push tobacco prices upwards
Continuous increases in tobacco prices during the review period were mainly attributable to the Italian government’s efforts to curb smoking rates in the country. This trend was maintained in 2007 with increased taxation on all tobacco products and an increase in the minimum price at which cigarettes can be legally sold. Manufacturers were left with little choice but to pass these increases on to consumers in order to retain their profit margin. Higher prices undoubtedly contributed to the volume sales decline in cigarettes, encouraging some smokers to cut down and others to kick the habit altogether.
Phasing out of EU subsidies to Italian tobacco producers continues in 2007
In line with the plan to gradually phase out EU subsidies to local tobacco producers and processors by 2010, Italy’s tobacco cultivation and production output continued to decline in 2007. The government and major market players worked together to create sustainable long-term plans for the tobacco farmers and factories involved, taking steps to ensure the ongoing commercialisation of Italian-grown tobacco.
Table of contents
TOBACCO IN ITALY : MARKET INSIGHT
EXECUTIVE SUMMARY
Cigarettes volume sales decline in line with anti-smoking measures
Price increases drive growth in cigarettes current value sales
Italian consumers continue to shift to economy brands and lower tar cigarettes
Tax increases continue to push tobacco prices upwards
Phasing out of EU subsidies to Italian tobacco producers continues in 2007
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
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies 2002-2007
Table 4 Average Cigarette Pack Price Breakdown: Brand Examples
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes 2003-2007
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
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - ITALY
BRITISH AMERICAN TOBACCO ITALIA SPA - TOBACCO - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco Italia SpA: Key Facts
Summary 3 British American Tobacco Italia SpA: Operational Indicators 2005-2007
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 4 British American Tobacco Italia SpA: Production Statistics by Factory 2003-2006
COMPETITIVE POSITIONING
Summary 5 British American Tobacco Italia SpA: Competitive Position 2007
JT INTERNATIONAL ITALIA SRL - TOBACCO - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 6 JT International Italia Srl: Key Facts
Summary 7 JT International Italia Srl: Operational Indicators 2006-2007
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 8 JT International Italia Srl: Competitive Position 2007
MANIFATTURE SIGARO TOSCANO SRL - TOBACCO - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Manifatture Sigaro Toscano Srl: Key Facts
Summary 10 Manifatture Sigaro Toscano Srl: Operational Indicators 2007
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 11 Manifatture Sigaro Toscano Srl: Competitive Position 2007
PHILIP MORRIS ITALIA SPA - TOBACCO - ITALY
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Philip Morris Italia SpA: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 13 Philip Morris Italia SpA: Competitive Position 2007
CIGARETTES IN ITALY
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 14 Cigarettes: Price Band Definitions 2007
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
New Product Developments
Summary 15 Cigarettes: New Product Launches 2007-2008
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 ITALY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
Summary 16 Cigars: New Product Launches 2007-2008
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 ITALY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
Summary 17 Smoking Tobacco: New Product Launches 2007
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 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012
Table 67 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012
Table 68 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012
Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012