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.
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Tables: 79 | Publication date: Jan 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
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