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.
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: 83 | Publication date: Mar 2009
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
Ongoing Downward Trend in Cigarette Sales
Cigarette retail volume sales declined in 2007, maintaining the downward trend observed throughout the review period. The decline in retail volume sales is due to a number of factors, most notably the ageing 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 the smoking population. The shrinking consumer base pushed manufacturers to focus on premium and value-added products in an effort to boost current value sales. Although low, and ultra low tar cigarettes registered slight increases in retail volume sales in 2007, overall sales continued to decline due to the strong decrease in high tar, and mid tar cigarettes.
Popular Types
Slims/superslims, D-spec filter cigarettes, menthol cigarettes, and flip-top packs enjoyed growing popularity among smokers. Slims/superslims, which come in designer boxes, are intended to appeal to female smokers (the population of female smokers is growing, while the number of male smokers declined). The D-spec filter reduces the odour of cigarette smoke. Responding to smokers' increasing demand for such filters, Japan Tobacco Inc replaced a number of existing products with D-spec filters. An increasing number of smokers prefer menthol cigarettes, which are perceived as having a less smoky taste. Cigarette companies have expanded their range of menthol cigarette products. Smokers feel that flip-top packs are more practical and offer better product protection, since many male smokers carry cigarettes in their pockets. Female smokers also strongly prefer flip-top packs, since this pack type maintains the shape of the cigarettes in their handbags. Japan Tobacco continued to launch cigarettes in flip-top packs as extensions to existing products.
Ultra Low Tar Cigarettes Gains Shares
The review period experienced a large shift in the preference of Japanese smokers, to lower tar cigarettes. During the review period, retail volume sales of ultra low tar cigarettes exceeded overtook mid tar cigarettes, to become the biggest category in Japan. In response to this trend, the leading players have placed a greater emphasis on their activities in the low, and ultra low tar categories. Japan Tobacco in particular launched a number of new ultra low tar cigarette brands and ultra low tar versions of existing brands.
Company Shares Stabilise
Philip Morris Japan KK continued to aggressively challenge Japan Tobacco by increasing its number of new product launches. However, the retail volume shares held by the three leading players remained almost exactly the same between 2005 and 2007, when Marlboro's marketing licence agreement in Japan with Philip Morris ended. In 2007, Philip Morris targeted the same areas in which Japan Tobacco is strong: low, and ultra low tar cigarettes, slims/superslims and menthol cigarettes. Moreover, Philip Morris strengthened its sales in convenience stores by performing special promotions. British American Tobacco Japan Ltd focused on defending its sales and shares, rather than mount a strong challenge to Japan Tobacco.
From Vending Machines to Convenience Stores
Cigarette companies have started to strengthen their sales in convenience stores, as they expect vending sales to decline after existing machines are replaced from July 2008. All existing vending machines are to be replaced with new machines offering identity-verification functions to prevent underage consumers from purchasing cigarettes. The introduction of more sophisticated vending machines is expected to encourage an increasing number of smokers to buy cigarettes from convenience stores rather than from the new apparatus. The new machines require people to insert an identification card before they can buy cigarettes. While this should prevent underage consumers from purchasing cigarettes, many adults may not bother to get or carry the special identification card.
Table of contents
TOBACCO IN JAPAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Ongoing Downward Trend in Cigarette Sales
Popular Types
Ultra Low Tar Cigarettes Gains Shares
Company Shares Stabilise
From Vending Machines to Convenience Stores
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
Minimum Legal Smoking Age
Tar Levels
Health Warnings
Duty Paid Packet Marks
Advertising and Sponsorship
Smoking In Public Places
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
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
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 2007
INTERCONTINENTAL TRADING CORP - TOBACCO - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Intercontinental Trading Corp: Key Facts
Summary 5 Intercontinental Trading Corp: Operational Indicators 2005
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 6 Intercontinental Trading Corp: Competitive Position 2007
JAPAN TOBACCO INC - TOBACCO - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Japan Tobacco Inc: Key Facts
Summary 8 Japan Tobacco Inc: Operational Indicators 2005-2007
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 9 Japan Tobacco Inc: Production Statistics by Brand 2002-2007
COMPETITIVE POSITIONING
Summary 10 Japan Tobacco Inc: Competitive Position 2007
PHILIP MORRIS JAPAN KK - TOBACCO - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Philip Morris Japan KK: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 12 Philip Morris Japan KK: Competitive Position 2007
CIGARETTES IN JAPAN
HEADLINES
TRENDS
Illicit Trade (Cigarettes)
Cigarettes: Price Bands
Summary 13 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
Overview
New Product Developments
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 JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
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 JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
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 Brand Shares of Pipe Tobacco 2004-2007
Table 67 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012
Table 68 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012
Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012
Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012