Tobacco in New Zealand
Euromonitor International's Tobacco in New Zealand 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: 91 | Publication date: Feb 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
Actual number of smokers increasing, despite low smoking prevalence
The prevalence of the smoking population has decreased in New Zealand since 2002 yet the actual number of smokers increased in tandem with the growing New Zealand population. Tobacco sold in 2007 remains unchanged by volume and shows growth in value terms. The underlying reason for this unchanged position can be attributed to current smokers declining at a very slow rate and new immigrants to the country bring their smoking habit with them, thus stabilising the low smoking levels seen since 2002.
Visual warning label finds its way in New Zealand
Visual warning legislation took effect in New Zealand in February 2008. Some tobacco companies already introduced cigarette tins with removable health warnings. This has the potential to minimize the impact of the proposed graphic warning labels in New Zealand. The tins are attractive, and have an easy to peel off Ministry of Health warning. Costing NZ$10.20, the tinned cigarettes cost exactly the same as a regular packet. With advertising and sponsorship bans, tobacco companies are showing increased interest in creating novel and attractive pack designs.
Retail value of tobacco grows in the face of new legislation
The retail value of the overall tobacco industry grew by 4% in 2007. Volume sales of tobacco experienced very little change from levels seen in 2006, which indicate that value growth was reflective of increased unit prices induced by the annual inflation-adjusted tax rise. The Smoke-free Environments Amendment Act (2003) came into effect during December 2004 prohibiting smoking in all workplaces including bars, clubs, cafes, restaurants, casinos and schools. This smoking ban failed to have any significant impact on reducing tobacco sales throughout 2007.
Low tar cigarettes fastest growing sector
Low tar and ultra low tar cigarettes were the fastest growing subsectors in 2007. The growth can be attributed to smokers’ perception that low tar cigarettes such as ultra mild and superior mild are less harmful to health. Ultra low tar is heavily represented by premium brands, such as Dunhill, B&H, Peter Stuyvesant, Kent and Mild Seven, therefore has additionally benefited from the brand equity that its brands hold and from the recent boom in premium brand smoking that occurred over 2005. Ultra low tar cigarettes have been the fasted growing over the review period in volume and retail value terms.
RYO saw slowed volume growth
Since 2005, the RYO sector has seen a marked slowdown in volume growth. Its average annual growth exceeded 4% since 2001, whereas in 2007, it saw only marginal volume growth. One of the key reasons for the slowdown over 2006 was that the marketing for economy cigarettes in large pack sizes was stepped up. They are also positioned as a value for money offering, in the same way that RYO products are. This allowed some previous RYO switchers to shift back to cigarettes and inhibited some cigarette smokers from switching to RYO during the year.
Table of contents
TOBACCO IN NEW ZEALAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Actual number of smokers increasing, despite low smoking prevalence
Visual warning label finds its way in New Zealand
Retail value of tobacco grows in the face of new legislation
Low tar cigarettes fastest growing sector
RYO saw slowed volume growth
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 2002-2008
Table 4 Average Cigarette Pack Price Breakdown : BAT Brands
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 - NEW ZEALAND
BRITISH AMERICAN TOBACCO (NEW ZEALAND) LTD - TOBACCO - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco (New Zealand) Ltd: Key Facts
Summary 3 British American Tobacco (New Zealand) Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 4 British American Tobacco NZ Ltd: Production Statistics by Factory (billion sticks)
COMPETITIVE POSITIONING
Summary 5 British American Tobacco New Zealand Ltd: Competitive Position 2007
PHILIP MORRIS (NEW ZEALAND) LTD - TOBACCO - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Philip Morris (New Zealand) Ltd: Key Facts
Summary 7 Philip Morris (New Zealand) Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 8 Philip Morris (New Zealand) Ltd: Competitive Position 2007
STUART ALEXANDER & CO PTY LTD - TOBACCO - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 9 Stuart Alexander & Co Pty Ltd: Key Facts
Summary 10 Stuart Alexander & Co (NZ) Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 11 Stuart Alexander & Co Pty Ltd: Competitive Position 2007
SWEDISH MATCH (NEW ZEALAND) LTD - TOBACCO - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Swedish Match (New Zealand) Ltd: Key Facts
Summary 13 Swedish Match (New Zealand) Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 14 Swedish Match (New Zealand) Ltd: Competitive Position 2007
VON EICKEN (VE LOGISTICS NZ LTD) - TOBACCO - NEW ZEALAND
STRATEGIC DIRECTION
KEY FACTS
Summary 15 VE Logistics NZ Ltd: Key Facts
Summary 16 VE Logistics NZ Ltd: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 17 VE Logistics NZ Ltd: Competitive Position 2007
CIGARETTES IN NEW ZEALAND
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 18 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
New Product Developments
Summary 19 Cigarettes: New Product Launches
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 NEW ZEALAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
Summary 20 Cigars: New Product Launches
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 NEW ZEALAND
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
Summary 21 Smoking Tobacco: New Product Launches
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