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: 84 | Publication date: Oct 2009
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Executive summary
Cigarettes volume sales continue to decline
Cigarettes volume sales in Japan continued to decline in 2008. This can be attributed 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). The shrinking consumer base pushed manufacturers to focus on premium and value-added products, in an effort to boost value sales.
Slims/superslims, menthol cigarettes and flip-top packs become more popular
Slims/superslims, menthol cigarettes and flip-top packs became increasingly popular among Japanese smokers during the review period. Slims/superslims and menthol cigarettes, packaged in designer boxes, are intended to appeal to the growing number of female smokers. Meanwhile, flip-top packs are considered to be more practical and to offer better product protection. Many male smokers carry cigarettes in their pockets, whereas female smokers favour handy-sized, flip-top packs that fit in a handbag.
Consumers shift towards lower tar cigarettes
Japanese smokers showed a notable shift towards lower tar cigarettes during the review period. As a result, ultra low tar cigarettes overtook mid tar cigarettes to become the largest category. In response to this trend, leading players placed greater emphasis on their low tar and ultra low tar brands. In 2008, Japan Tobacco Inc launched a number of new ultra low tar brands, as well as ultra low tar versions of existing brands.
Manufacturers’ volume shares stabilise
Philip Morris Japan KK continued aggressively to challenge Japan Tobacco Inc in 2008, by increasing its number of new product launches. However, the volume shares held by the three leading players remained relatively unchanged from 2005, when Marlboro’s marketing licence agreement with Japan Tobacco Inc came to an end. In an attempt to reduce the leader’s dominant volume share, Philip Morris Japan KK and British American Tobacco Japan Ltd continued to target the same categories in which Japan Tobacco Inc is strong, namely low tar and ultra low tar cigarettes, slims/superslims and menthol cigarettes.
Vending gives way to convenience stores
The distribution of cigarettes through vending crashed in 2008, due the introduction of the TASPO age verification system. 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.
Volume sales expected to continue falling over the forecast period
The decline in cigarettes volume sales is expected to continue over the forecast period. Manufacturers are already developing strategies to boost their value sales, in an attempt to insulate themselves from the predicted slide in volume sales. As in many other fast-moving consumer goods markets, the ageing Japanese population presents something of an insurmountable obstacle to the tobacco market. Leading player, Japan Tobacco Inc, has been forced to look abroad, as evidenced by its purchase of Gallaher Group Plc in 2007.
Table of contents
TOBACCO IN JAPAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Cigarettes volume sales continue to decline
Slims/superslims, menthol cigarettes and flip-top packs become more popular
Consumers shift towards lower tar cigarettes
Manufacturers’ volume shares stabilise
Vending gives way to convenience stores
Volume sales expected to continue falling over the forecast period
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Japan Tobacco Smoking Prevalence by Gender Survey 2004-2008
Table 2 Euromonitor International Smoking Prevalence by Gender Estimate 2004-2008
Table 3 Number of Smokers by Gender 2004-2008
Death by Cause
Table 4 Death by cause 2004-2008
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/FCTC ratification
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Litigation
Taxation and Duty Levies
Table 5 Taxation and Duty Levies
Table 6 Average Cigarette Pack Price Breakdown: Brand Examples
Production/Imports/Exports
Table 7 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 8 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 9 Sales of Tobacco by Sector: Volume 2003-2008
Table 10 Sales of Tobacco by Sector: Value 2003-2008
Table 11 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 12 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 13 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 15 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 16 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
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 2008
INTERCONTINENTAL TRADING CORP - TOBACCO - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Intercontinental Trading Corp: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 5 Intercontinental Trading Corp: Competitive Position 2008
JAPAN TOBACCO INC - TOBACCO - JAPAN
STRATEGIC DIRECTION
KEY FACTS
Table 17 Summary1 Japan Tobacco Inc: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 6 Japan Tobacco Inc: Competitive Position 2008
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 2008
CIGARETTES IN JAPAN
HEADLINES
TRENDS
Distribution
COMPETITIVE LANDSCAPE
New Product Developments
Summary 9 Cigarettes: New Product Launches
PROSPECTS
SECTOR BACKGROUND
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 10 Cigarette Price Band Definitions
Table 18 Global Brand Owner Share of Premium Price Band 2003-2008
Cigarettes: Filter Splits
Cigarettes: Pack Splits
SECTOR DATA
Table 19 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 20 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 21 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 22 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 23 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 24 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 25 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 26 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 27 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 28 Sales of Cigarettes by Length 2003-2008
Table 29 Sales of Cigarettes by Regular/Slim 2006-2008
Table 30 Sales of Cigarettes by Pack Size 2003-2008
Table 31 Sales of Cigarettes by Pack Type 2003-2008
Table 32 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 33 Cigarettes Company Shares 2004-2008
Table 34 Cigarettes Brand Shares 2005-2008
Table 35 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 36 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 37 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 38 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 39 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 40 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 41 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 42 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 43 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 44 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 45 Forecast Sales of Cigarettes by Length 2008-2013
Table 46 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 47 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 48 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
PROSPECTS
SECTOR DATA
Table 49 Sales of Cigars by Subsector: Volume 2003-2008
Table 50 Sales of Cigars by Subsector: Value 2003-2008
Table 51 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 52 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 53 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 54 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 55 Company Shares of Cigarillos 2004-2008
Table 56 Brand Shares of Cigarillos 2005-2008
Table 57 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 58 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 59 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 60 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 61 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO IN JAPAN
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
PROSPECTS
SECTOR DATA
Table 62 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 63 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 64 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 65 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 66 Company Shares of RYO Tobacco 2004-2008
Table 67 Brand Shares of RYO Tobacco 2005-2008
Table 68 Company Shares of Pipe Tobacco 2004-2008
Table 69 Brand Shares of Pipe Tobacco 2005-2008
Table 70 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 71 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 72 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 73 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 74 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013
SMOKELESS TOBACCO IN JAPAN
HEADLINES
TRENDS