Tobacco
Tobacco

Tobacco in Norway

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.

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Tables: 79  |  Publication date: Jan 2008
Cost: 
GBP950.00

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  • 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

The Norwegian market experiences decline in 2006 following two years of slow growth

Value sales of smoking tobacco were down in 2006, following two years in which growth was stagnant. Smokers were discouraged by the introduction of the smoking ban in June 2004 and the Norwegian Government’s heavy taxation of tobacco products. Some smokers switched to snus while others heeded the strong trend towards healthier living and were able to stop their addictive habit. The Norwegian Statistics Bureau estimated that approximately 900,000 Norwegians smoked daily in 2006, which was 24% of the total population. Cross-border shopping trips to Sweden, where tobacco products are significantly lower-priced compared to the Norwegian market, continued to heavily impact Norwegian tobacco in 2006. It was also hampered by illicit trade and tax-free sales at domestic airports which proved very profitable and had a negative impact on domestic retail sales.

Norwegians smoke less

Research by the Health Institute found that the amount of smokers did not decrease as expected as a result of the smoking ban of June 2004, instead smokers light up fewer cigarettes. This is particularly the case in social situations. Some smokers were of course able to stop their habit, but the fact that fewer people started smoking in 2006 compared to previous years also impacted Norwegian tobacco. There is subtle pressure in Norwegian society as many consider smoking to be a weak person’s activity pursued by those lacking a strong will and the motivation to refrain from smoking.

Snus gains popularity

After the smoking ban was introduced many consumers were prepared to switch to the smokeless tobacco, snus. In particular JL Tiedemanns prepared itself for this shift and launched several products in response. 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 at girls and young women. It is still attractive to use snus, especially among the younger generations, and boys and men dominate its consumption as it is perceived as a trendy activity. The government started to reconsider the taxation of snus and raised taxes in 2006 in a bid to prevent further increase in the number of people who start using snus. It is estimated by the department for health that 6% of Norwegians used snus on a daily basis in 2006.

JL Tiedemanns dominates the tobacco market

JL Tiedemanns, the Danish-owned company, was the leader of tobacco during 2006 with the largest value sales share of cigarettes, smoking tobacco and cigars, as well as having a strong presence in snus. The company accounted for two thirds of the tobacco market during 2006 and distributed well-known brands while showing innovation such as its snus launches. JL Tiedemanns was well prepared when the smoking ban came into effect in 2004 and moved into snus as the company predicted this would be an area of considerable growth. The company was right and during 2006 it invested more in snus with various product launches which made it a real competitor for Swedish Match Norge which dominated sales of snus at the end of the review period.

Forecast period sales set to decline

The tobacco players in the Norwegian market are prepared for a tough forecast period. The government is not on their side and their products are set to face further taxation rises which will mean financial losses for all players in the market. Cross-border shopping for tobacco products in Sweden is expected to continue as are tax-free sales when Norwegians travel and tax-free sales on arrival is another introduction which will impact the market negatively. Snus is expected to rise in popularity over the forecast period, especially among the younger generations. Consumption of snus will not be restricted to men but also women and this is another problem the government will try to tackle by increasing the taxes on such products.

Table of contents

TOBACCO IN NORWAY : MARKET INSIGHT

EXECUTIVE SUMMARY

The Norwegian market experiences decline in 2006 following two years of slow growth

Norwegians smoke less

Snus gains popularity

JL Tiedemanns dominates the tobacco market

Forecast period sales set to decline

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 2003-2006

Table 4 Average Cigarette Pack Price Breakdown: Brand Example

Production/Imports/Exports

Table 5 Trade Statistics – Cigarettes 2001-2006

The Role and Effect of Cannabis/Marijuana

Snus the new winner in the tobacco market

Has the smoking ban shifted the tobacco problem for the government?

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 - 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 2006

GUNNAR STENBERG AS - TOBACCO - NORWAY

STRATEGIC DIRECTION

KEY FACTS

Summary 5 Gunnar Stenberg AS: Key Facts

Summary 6 Gunnar Stenberg AS: Operational Indicators

COMPANY BACKGROUND

Production by Factory

COMPETITIVE POSITIONING

Summary 7 Gunnar Stenberg: Competitive Position 2006

JL TIEDEMANNS TOBAKSFABRIK AS - TOBACCO - NORWAY

STRATEGIC DIRECTION

KEY FACTS

Summary 8 JL Tiedemanns AS: Key Facts

Summary 9 JL Tiedemanns AS: Operational Indicators

COMPANY BACKGROUND

Production by Factory

COMPETITIVE POSITIONING

Summary 10 JL Tiedemanns: Competitive Position 2006

CIGARETTES IN NORWAY

HEADLINES

TRENDS

Illicit trade (Cigarettes)

Cigarettes: Price Bands

Cigarettes: Filter Splits

Table 19 Slims/superslims Penetration

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 NORWAY

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 NORWAY

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 Brand Shares of RYO Tobacco 2003-2006

Table 64 Company Shares of Pipe Tobacco 2002-2006

Table 65 Brand Shares of Pipe Tobacco 2003-2006

Table 66 Forecast Sales of Smoking Tobacco by Subsector: Volume 2006-2011

Table 67 Forecast Sales of Smoking Tobacco by Subsector: Value 2006-2011

Table 68 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2006-2011

Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2006-2011

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