Tobacco in Japan
Euromonitor International's Tobacco in Japan 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: 76 | Publication date: Feb 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
Total cigarettes volume and current value sales continue to decline
Total cigarettes volume sales declined in 2006, maintaining the downward trend observed throughout the review period. Declining volume sales were attributable to a number of factors, most notably the ageing of the Japanese population, growing health concerns and the implementation of the Framework Convention on Tobacco Control (FCTC), which saw the government introduce stricter regulations designed to reduce smoking. The shrinking consumer base pushed manufacturers to focus on premium and value-added products in an effort to boost current value sales, but this strategy was largely unsuccessful, with high, mid, low and ultra low cigarettes all showing a decline in volume and current value terms in 2006.
Value-added cigarettes prove popular with Japanese smokers
Premium and value-added brands performed well in cigarettes towards the end of the review period. Volume and current value sales of menthol cigarettes brands continued to grow impressively in 2006. Stylish extra-slim and long cigarettes in attractively designed boxes, targeted mainly at women smokers, were identified as an emerging and lucrative niche. Acknowledging the popularity of premium imported brands in flip-top packs, Japan Tobacco Inc launched several of its existing brands in flip-top packs. Additionally, most new products launched by the company were made available in flip-top rather than soft packs. Japan Tobacco took a more innovative approach to packaging in 2006, launching a new box that opens at the side to dispense one cigarette at a time. At the end of 2006, the company launched the D-spec cigarette, which features a special filter designed to eliminate the smoky smell. By the end of the year, the company had applied the technology to around 20 of its brands. With the exception of menthol brands, demand for flavoured cigarettes (eg those with vanilla or black-tea flavours), which are increasingly popular in the US, remained negligible in Japan at the end of the review period. Instead, Japanese smokers welcomed lightly scented products that give off aromas such as berry-scent and citrus.
Japanese smokers continue to switch to ultra-low tar cigarettes
Japanese consumers showed a growing preference for lower tar cigarettes throughout the review period. Despite the decline in total cigarettes volume sales, the volume share of ultra low brands within the sector rose consistently. In response to this trend, key players placed a greater emphasis on their activities in the low and ultra low tar categories. Japan Tobacco was to the fore in this regard, launching new ultra low tar brands and introducing ultra low variants of existing brands.
Imported brands gain ground in cigarettes
Imported cigarettes brands proved increasingly popular with Japanese smokers during the review period. Though Japan Tobacco continued to dominate the cigarettes sector in 2006, its volume share was down markedly on 2001. Japan Tobacco was able to maintain its leading position thanks to its strong nationwide distribution network, which incorporates a large number of company-owned vending machines. While this presented a tough challenge for foreign players, because there is no import tax on cigarettes in Japan and products can be manufactured at a much lower cost outside the country, they enjoyed significant profit margins. Philip Morris Japan KK and British American Tobacco Japan Ltd were the second and third leading players within cigarettes respectively in 2006, and both companies made steady volume share gains during the review period.
Mini cigars prove popular with younger Japanese and women smokers
The cigars sector showed consistently healthy volume growth rates throughout the review period, underpinned by the increasing popularity of mini-cigars (eco-cigarillos). The cigar craze was also triggered by TV programmes presenting cigar smoking as a form of relaxation, as well as the opening of fashionable cigar bars in Japanese cities. All of this helped to create a new generation of cigar smokers, notable for the fact that it consisted mainly of younger Japanese and a growing number of women. That said, in 2006 cigars volume sales remained insignificant compared to those in cigarettes. Unlike in many other countries (particularly Western nations), most Japanese people find the smell of cigar smoke to be too strong or unpleasant and thus do not feel comfortable smoking them. However, thanks to the popularity of low priced mini cigars among younger Japanese, total cigars volume sales are expected to continue rising over the forecast period.
Table of contents
TOBACCO IN JAPAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Total cigarettes volume and current value sales continue to decline
Value-added cigarettes prove popular with Japanese smokers
Japanese smokers continue to switch to ultra-low tar cigarettes
Imported brands gain ground in cigarettes
Mini cigars prove popular with younger Japanese and women smokers
OPERATING ENVIRONMENT
Smoking Population
Table 1 Smoking Prevalence in Population 2001-2006
Table 2 Number of Smokers by Gender 2001-2006
Death by Cause
Legislation
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies 2001-2006
Table 4 Average Cigarette Pack Price Breakdown : Brand Examples
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes 2001-2006
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 6 Deaths by Diseases of the Respiratory System 2001-2006
Table 7 Deaths from Heart Disease 2001-2006
Table 8 Deaths from Lung Cancer 2001-2006
Table 9 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 10 Sales of Tobacco by Sector: Volume 2001-2006
Table 11 Sales of Tobacco by Sector: Value 2001-2006
Table 12 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 13 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 14 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 15 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 16 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 17 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 18 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - JAPAN
BRITISH AMERICAN TOBACCO JAPAN LTD - TOBACCO - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco Japan Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 3 British American Tobacco Japan Ltd: Competitive Position 2006
JAPAN TOBACCO INC - TOBACCO - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Japan Tobacco Inc : Key Facts
Summary 5 Japan Tobacco Inc : Operational Indicators 2004-2006
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 6 Japan Tobacco Inc: Competitive Position in 2006
PHILIP MORRIS JAPAN KK - TOBACCO - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Philip Morris Japan KK: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 8 Philip Morris Japan KK: Competitive Position 2006
CIGARETTES IN JAPAN
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Cigarettes: Filter Splits
Table 19 Slims/superslims Penetration 2006
Cigarettes: Pack Splits
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 20 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 21 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 22 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 23 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 24 Sales of Cigarettes by Price Band: % Volume Breakdown 2001-2006
Table 25 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2001-2006
Table 26 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2001-2006
Table 27 Sales of Cigarettes by Filter Vs Non-filter 2001-2006
Table 28 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2001-2006
Table 29 Sales of Cigarettes by Length 2001-2006
Table 30 Sales of Cigarettes by Pack Size 2001-2006
Table 31 Sales of Cigarettes by Pack Type 2001-2006
Table 32 Cigarettes Company Shares 2002-2006
Table 33 Cigarettes Brand Shares 2003-2006
Table 34 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 35 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 36 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 37 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 38 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 39 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 40 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 41 Forecast Sales of Cigarettes by Filter Vs Non-filter 2006-2011
Table 42 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2006-2011
Table 43 Forecast Sales of Cigarettes by Length 2006-2011
Table 44 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 45 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 46 Sales of Cigars by Subsector: Volume 2001-2006
Table 47 Sales of Cigars by Subsector: Value 2001-2006
Table 48 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 49 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 50 Company Shares of Cigars Exluding Cigarillos 2002-2006
Table 51 Brand Shares of Cigars Exluding Cigarillos 2003-2006
Table 52 Company Shares of Cigarillos 2002-2006
Table 53 Brand Shares of Cigarillos 2003-2006
Table 54 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 55 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 56 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 57 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 58 Sales of Smoking Tobacco by Subsector: Volume 2001-2006
Table 59 Sales of Smoking Tobacco by Subsector: Value 2001-2006
Table 60 Sales of Smoking Tobacco by Subsector: % Volume Growth 2001-2006
Table 61 Sales of Smoking Tobacco by Subsector: % Value Growth 2001-2006
Table 62 Company Shares of RYO Tobacco 2002-2006
Table 63 Company Shares of Pipe Tobacco 2002-2006
Table 64 Brand Shares of Pipe Tobacco 2003-2006
Table 65 Forecast Sales of Smoking Tobacco by Subsector: Volume 2006-2011
Table 66 Forecast Sales of Smoking Tobacco by Subsector: Value 2006-2011
Table 67 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2006-2011
Table 68 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2006-2011