Tobacco in Norway
Euromonitor International's Tobacco in Norway 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: 86 | Publication date: Oct 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
Contrary to predictions the tobacco market is increasing
The tobacco market in Norway during 2007 can be viewed from different angles. Including illicit trade, which increased dynamically in 2007, the market is increasing, especially in volume terms. Without including illicit trade the market is surprisingly stagnant both in volume and value terms. Following the smoking ban, experts predicted a fall in the number of smokers, but this has not turned out to be the case. Smokers instead tend to smoke less than before, and fewer people are starting to smoke, as they are put off by the health risks. On the other hand, a large proportion of young people between 18 and 25 have turned to snus, which again during 2007 experienced record high sales. One strong trend seen during the year was that smokers wanted to become healthier, and therefore there was a strong move towards low tar cigarettes and smokers smoking less.
Snus continues to increase in popularity
During 2007 snus set another record in terms of volume sales. It is estimated that a quarter of all snus users are below 24 years of age. This means there were many in that age group who could potentially have started to smoke, but this has not been the case and instead they have turned to snus, which is perceived as a “healthier” alternative to cigarettes. Snus is not usually associated with girls, but the fact is that statistics show that girls now frequently use snus, and this is due to trendy designs on snus boxes, and snus brands aimed directly towards girls and young women.
Government taxation accounts for 75% of value sales of tobacco
Snus has not escaped the fierce taxation policies of the Norwegian government, and taxes on cigarettes, cigars and smoking tobacco were raised year on year throughout the review period. The market did not escape a tax rise in 2008 either. The heavy taxation policies by the Norwegian government have meant that value sales have not fallen dramatically, which one would have expected due to declining volume sales. Increasing prices due to taxation meant there was only a small drop in current value growth during 2007. Approximately 75% of the total value sales in the Norwegian tobacco market are taken by the government in terms of taxes and VAT.
JL Tiedemanns dominates the market
JL Tiedemanns Tobaksfabrik AS, the Danish-owned company, was the leader in tobacco during 2007, with the largest volume sales share of cigarettes, smoking tobacco and cigars excluding cigarillos, as well as having a strong presence in snus. The company accounted for more than two thirds of the tobacco market volume sales during 2007. JL Tiedemanns and the other players in the tobacco market face tough market conditions due to heavy taxation by the Norwegian government, in addition to other strict legislative restrictions and EU rules. The consequences are many, and the one which affects the market the most is Norwegian smokers purchasing tobacco in Sweden, where prices are almost half those in Norway. In addition to tax-free sales when travelling there is also illicit trade, which mostly means people smuggling by exceeding their allowance, but also street sales of illegal tobacco, mostly present in Oslo.
Forecast period set to experience a slight downturn in sales
The market conditions and the government taxation policies are not expected to change during the forecast period. 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 on volume sales in particular. The number of young people turning to snus is also expected to continue. Value sales will experience a downturn, but again, due to heavy taxation and VAT increases, this will not be as dramatic as expected. It is expected that the players in the market will invest more in snus, as this is where the potential for profit lies, in addition to cigars, which started becoming very trendy amongst male users during 2007. Therefore, the number of young people starting to smoke is expected to be few, and in addition to cross-border sales, illicit trade and tax-free sales, the forecast period looks bleak.
Table of contents
TOBACCO IN NORWAY : MARKET INSIGHT
EXECUTIVE SUMMARY
Contrary to predictions the tobacco market is increasing
Snus continues to increase in popularity
Government taxation accounts for 75% of value sales of tobacco
JL Tiedemanns dominates the market
Forecast period set to experience a slight downturn in sales
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
The smoking ban – four years on
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies 2004-2008
Table 4 Average Cigarette Pack Price Breakdown: Marlboro
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes 2003-2007
The Role and Effect of Cannabis/Marijuana
Snus keeps on increasing in popularity
British American Tobacco to acquire leadership in Scandinavian markets
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 - NORWAY
CONRAD LANGAARD AS - TOBACCO - NORWAY
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Conrad Langaard AS: Key Facts
Summary 3 Conrad Langaard AS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 4 Conrad Langaard AS: Competitive Position 2007
GALLAHER NORWAY AS - TOBACCO - NORWAY
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Gallaher Norway AS: Key Facts
Summary 6 Gallaher Norway AS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 7 Gallaher Norway AS: Competitive Position 2007
GUNNAR STENBERG AS - TOBACCO - NORWAY
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Gunnar Stenberg AS: Key Facts
Summary 9 Gunnar Stenberg AS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 10 Gunnar Stenberg AS: Competitive Position 2007
JL TIEDEMANNS TOBAKSFABRIK AS - TOBACCO - NORWAY
STRATEGIC DIRECTION
KEY FACTS
Summary 11 JL Tiedemanns Tobaksfabrik AS: Key Facts
Summary 12 JL Tiedemanns Tobaksfabrik AS: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 13 JL Tiedemanns Tobaksfabrik AS: Competitive Position 2007
CIGARETTES IN NORWAY
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 14 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
New Product Developments
Summary 15 Cigarettes: New Product Launches 2007
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 NORWAY
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
Summary 16 Cigars: New Product Launches 2007
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 NORWAY
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