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.

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• Get insight into trends in market performance
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Executive summary

Recession and anti-smoking initiatives hinder volume growth

In line with the review period, the tobacco market saw a decline in volume sales in 2008. Cigarettes, the largest sector, recorded a poor performance. The decline reflected firstly a decrease in consumer household expenditure due to the recent financial economic crisis and, secondly, the success of government anti-smoking initiatives. Cigars and smoking tobacco continued to post healthy volume growth in 2008. However, compared to cigarettes, these categories continued to play a marginal role in the tobacco market as a whole and their growth was not enough to compensate for the decline in cigarettes.

Unit prices increase, boosting value sales

In 2008 the tobacco market recorded healthy growth in current value terms. Even cigarettes, which posted a decline in volume terms, registered current value growth of 3%, largely due to a steep increase in average unit price. In order to curb smoking prevalence in the country, the Italian government increased taxation on tobacco products and the minimum price for cigarettes. In the case of cigars and smoking tobacco, current value growth was also underpinned by steady growth in volume terms.

Philip Morris enjoys strong lead

Philip Morris remained the leader in cigarettes, and hence the tobacco market, in 2008. Italy is the most important single market for Philip Morris, accounting for around 11% of multinational operational income. This is due to the strong reputation of its portfolio, in particular the Marlboro brand, despite the higher price.

Attractive packaging to stimulate impulse purchases

Cigarettes are generally bought close to home or near one’s workplace, regardless of the venue. Supermarkets are not allowed to sell cigarettes, but many licensed tobacco stores can be found within walking distance of shopping malls. The cigarette products generally available range from branded premium products to lower-end and lower-priced products. As tobacco products, and in particular cigarettes, are considered impulse purchases, manufacturers have continued to develop attractive packaging to stimulate sales.

Phasing out of EU subsidies to Italian tobacco producers continues in 2008

The Italian government has and will continue to introduce a range of measures designed to curb smoking prevalence. In line with the plan to phase out EU subsidies to local tobacco producers and processors by 2010, Italy’s tobacco cultivation and production output will continue to decline. Moreover, taxes are expected to rise year-on-year throughout the forecast period, and VAT is also set to rise further. The number of smokers is predicted to decline slightly, and this will impact volume sales in particular.

Table of contents

TOBACCO IN ITALY : MARKET INSIGHT

EXECUTIVE SUMMARY

Recession and anti-smoking initiatives hinder volume growth

Unit prices increase, boosting value sales

Philip Morris enjoys strong lead

Attractive packaging to stimulate impulse purchases

Phasing out of EU subsidies to Italian tobacco producers continues in 2008

MARKET BACKGROUND

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

Country-specific legislation:

Taxation and Duty Levies

Outlook

Table 4 Taxation and Duty Levies 2003-2008

Table 5 Average Cigarette Pack Price Breakdown: Brand Examples 2008

Production/imports/exports

Table 6 Trade Statistics – Cigarettes 2004-2008

Table 7 Illicit Trade Estimate 2003-2008

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 - 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

Company Background

Production

Summary 4 British American Tobacco Italia SpA: Production Statistics 2008

Competitive Positioning

Summary 5 British American Tobacco Italia SpA: Competitive Position 2008

MANIFATTURE SIGARO TOSCANO SRL - TOBACCO - ITALY

STRATEGIC DIRECTION

KEY FACTS

Summary 6 Manifatture Sigaro Toscano Srl: Key Facts

Summary 7 Manifatture Sigaro Toscano Srl: Operational Indicators

Company Background

Production

Summary 8 Manifatture Sigaro Toscano SpA: Production Statistics 2008

Competitive Positioning

Summary 9 Manifatture Sigaro Toscano Srl: Competitive Position 2008

PHILIP MORRIS ITALIA SPA - TOBACCO - ITALY

STRATEGIC DIRECTION

KEY FACTS

Summary 10 Philip Morris Italia SpA: Key Facts

Summary 11 Philip Morris Italia SpA: Operational Indicators

Company Background

Production

Competitive Positioning

Summary 12 Philip Morris Italia SpA: Competitive Position 2008

CIGARETTES IN ITALY

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

Summary 13 Cigarettes - New Product Launches

PROSPECTS

SECTOR BACKGROUND

Cigarettes: Illicit trade

Cigarettes: Price Bands

Summary 14 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 ITALY

HEADLINES

TRENDS

Distribution

COMPETITIVE LANDSCAPE

New Product Developments

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 ITALY

HEADLINES

TRENDS

Distribution

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

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 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008

Table 66 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013

Table 67 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013

Table 68 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013

Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013