Tobacco in Pakistan
Euromonitor International's Tobacco in Pakistan 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: 149 | Publication date: Sep 2009
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Executive summary
Increased Taxation Boosts Illicit Sales of Cigarettes
Sales of cigarettes in Pakistan continued to increase during 2008 despite the prevailing economic downturn and rising levels of taxation, although the growth rate was the slowest seen throughout the review period. The major factor behind this deceleration was increased taxes and hence unit prices, which also caused illicit trade volume to rise by a substantial amount that year. This has become one of the biggest challenges to the tobacco companies operating in Pakistan. In terms of smoking prevalence, the number of smokers is increasing among females and the urban population.
Tobacco Control Remains Weak in Pakistan
Tobacco control in Pakistan remained virtually non-existent during 2008 with little or no action from the government side except a nominal increase in taxes. The Coalition for Tobacco Control in Pakistan is lobbying the government to implement the Framework Convention for Tobacco Control (FCTC), signed a few years ago. Moreover, the National Tobacco Control Programme, drawn up by the Ministry of Health at an estimated cost of PKR40 million, did not take off due to administrative bottlenecks.
Illicit Trade is the Biggest Competition
Pakistan Tobacco Co Ltd continues to lead the industry, followed closely in second place by Lakson Tobacco Co Ltd. Nevertheless, and despite intense competition between them, these two companies cooperate regarding tactics to protect their volume shares from illicitly traded supplies of their brands which are smuggled into Pakistan at lower prices and are of better quality. The government has not taken any action so far to stop this illicit trade, nor is it expected to do much in the future. In an attempt to address this problem Lakson Tobacco Co relaunched the Marlboro brand during 2008 utilising imported cigarettes, and other companies are expected to do likewise in the foreseeable future as well.
Improved Distribution Networks Help Sales
Distribution has improved within rural areas of Pakistan despite reductions in the sales forces at both Lakson Tobacco Co Ltd and Pakistan Tobacco Co Ltd, which have had to lay off a certain number of employees. Nevertheless, the restructuring of sales teams throughout Pakistan has paid off in terms of improved product availability and heightened consumer awareness thanks to better point-of-sale merchandising. Street vendors continues to account for the largest proportion of cigarettes retail volume sales compared with any other distribution channel.
More Pressure to Come in the Future
The growing number of anti-smoking campaigns and health awareness programmes run by social welfare organisations within Pakistan is exerting pressure on the government to tighten the relevant laws and regulations and to improve its implementation of those currently in force. Anticipated forecast period changes in the health warnings displayed on packs from textual to pictorial versions are expected to raise awareness and so reduce volume sales of cigarettes for local manufacturers. Moreover, economic uncertainty will have the greatest impact on middle-class consumers living in urban areas. The anticipated reductions in purchasing power are likely to boost the consumption of mid-priced cigarettes and reduce that of premium and economy varieties.
Table of contents
TOBACCO IN PAKISTAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Increased Taxation Boosts Illicit Sales of Cigarettes
Tobacco Control Remains Weak in Pakistan
Illicit Trade is the Biggest Competition
Improved Distribution Networks Help Sales
More Pressure to Come in the Future
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative Overview/FCTC Ratification
COUNTRY-SPECIFIC LEGISLATION
Minimum Legal Smoking Age
Tar Levels
Health Warnings
Duty Paid Packet Marks
Advertising and Sponsorship
Smoking in Public Places
Litigation
TAXATION AND DUTY LEVIES
Table 3 Taxation and Duty Levies
Table 4 Average Cigarette Pack Price Breakdown: Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 5 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 6 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2003-2008
Table 8 Sales of Tobacco by Sector: Value 2003-2008
Table 9 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 10 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 11 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 12 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 13 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 1 Summary - Research Sources
EXECUTIVE SUMMARY
Women increase their cigarette consumption
Stricter anti-smoking law takes effect
Multinationals focus on launching brand extensions
Independent small grocers remain the leading distribution channel of cigarettes
Tobacco consumption expected to continue to increase
OPERATING ENVIRONMENT
Smoking Prevalence
Table 15 Smoking Prevalence in Population 2003-2008
Table 16 Number of Smokers by Gender 2003-2008
Death by Cause
Table 17 Death by Cause 2004-2008
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/FCTC ratification
Country-specific legislation:
Minimum legal smoking age
Tar levels
Health warnings
Duty paid packet marks
Advertising and sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 18 Taxation and Duty Levies
Table 19 Average Cigarette Pack Price Breakdown: Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 20 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 21 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 22 Sales of Tobacco by Sector: Volume 2003-2008
Table 23 Sales of Tobacco by Sector: Value 2003-2008
Table 24 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 25 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 26 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 27 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 28 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 29 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 2 Summary - Research Sources
EXECUTIVE SUMMARY
Women increase their cigarette consumption
Stricter anti-smoking law takes effect
Multinationals focus on launching brand extensions
Independent small grocers remain the leading distribution channel of cigarettes
Tobacco consumption expected to continue to increase
OPERATING ENVIRONMENT
Smoking Prevalence
Table 30 Smoking Prevalence in Population 2003-2008
Table 31 Number of Smokers by Gender 2003-2008
Death by Cause
Table 32 Death by Cause 2004-2008
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/FCTC ratification
Country-specific legislation:
Minimum legal smoking age
Tar levels
Health warnings
Duty paid packet marks
Advertising and sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 33 Taxation and Duty Levies
Table 34 Average Cigarette Pack Price Breakdown: Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 35 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 36 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 37 Sales of Tobacco by Sector: Volume 2003-2008
Table 38 Sales of Tobacco by Sector: Value 2003-2008
Table 39 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 40 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 41 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 42 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 43 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 44 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
DEFINITIONS
Summary 3 Summary - Research Sources
CIGARETTES
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Summary 4 Summary - New Product Launches
Prospects
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 5 Summary - Cigarette Price Band Definitions
Cigarettes: Menthol/standard
Cigarettes: Filter/non-filter
Cigarettes: Carbon/standard filter
Cigarettes: Length
Cigarettes: Slim/superslim versus regular
Cigarettes: Pack size
Cigarettes: Pack type
SECTOR DATA
Table 45 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 46 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 47 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 48 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 49 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 50 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 51 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 52 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 53 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 54 Sales of Cigarettes by Length 2003-2008
Table 55 Sales of Cigarettes by Regular/Slim 2006-2008
Table 56 Sales of Cigarettes by Pack Size 2003-2008
Table 57 Sales of Cigarettes by Pack Type 2003-2008
Table 58 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 59 Cigarettes Company Shares 2004-2008
Table 60 Cigarettes Brand Shares 2005-2008
Table 61 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 62 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 63 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 64 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 65 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 66 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 67 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 68 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 69 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 70 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 71 Forecast Sales of Cigarettes by Length 2008-2013
Table 72 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 73 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 74 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS AND CIGARILLOS
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
SECTOR DATA
Table 75 Sales of Cigars by Subsector: Volume 2003-2008
Table 76 Sales of Cigars by Subsector: Value 2003-2008
Table 77 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 78 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 79 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 80 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 81 Company Shares of Cigarillos 2004-2008
Table 82 Brand Shares of Cigarillos 2005-2008
Table 83 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 84 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 85 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 86 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 87 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
SECTOR DATA
Table 88 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 89 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 90 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 91 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 92 Company Shares of RYO Tobacco 2004-2008
Table 93 Brand Shares of RYO Tobacco 2005-2008
Table 94 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 95 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 96 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 97 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 98 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013
SMOKELESS TOBACCO
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
LOCAL COMPANY PROFILES - PAKISTAN
KHYBER TOBACCO CO LTD - TOBACCO - PAKISTAN
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Summary - Khyber Tobacco Company: Key Facts
Summary 7 Summary - Khyber Tobacco Company: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
LAKSON TOBACCO CO LTD - TOBACCO - PAKISTAN
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Summary - Lakson Tobacco Co Ltd: Key Facts
Summary 9 Summary - Lakson Tobacco Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 10 Summary - Lakson Tobacco Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 11 Summary - Lakson Tobacco Co Ltd: Competitive Position 2008
PAKISTAN TOBACCO CO LTD - TOBACCO - PAKISTAN
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Summary - Pakistan Tobacco Co Ltd: Key Facts
Summary 13 Summary - Pakistan Tobacco Co Ltd: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 14 Summary - Pakistan Tobacco Co Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 15 Summary - Pakistan Tobacco Co Ltd: Competitive Position 2008
CIGARETTES IN PAKISTAN
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR BACKGROUND
Cigarettes: Illicit Trade
Outlook
CIGARETTES: PRICE BANDS
Summary 16 Summary - Cigarette Price Band Definitions
Outlook
CIGARETTES: MENTHOL/STANDARD
CIGARETTES: FILTER/NON-FILTER
CIGARETTES: CARBON/STANDARD FILTER
CIGARETTES: FILTER LENGTH
CIGARETTES: SLIMS/SUPERSLIMS VS REGULAR
CIGARETTES: PACK SIZE
CIGARETTES: PACK TYPE
SECTOR DATA
Table 99 Sales of Cigarettes by Regular/Slim 2006-2008
Table 100 Sales of Cigarettes by Pack Size 2003-2008
Table 101 Sales of Cigarettes by Pack Type 2003-2008
Table 102 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 103 Cigarettes Company Shares 2004-2008
Table 104 Cigarettes Brand Shares 2005-2008
Table 105 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 106 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 107 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 108 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 109 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 110 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 111 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 112 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 113 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 114 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 115 Forecast Sales of Cigarettes by Length 2008-2013
Table 116 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 117 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 118 Forecast Sales of Cigarettes by Pack Type 2008-2013
Table 119 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 120 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 121 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 122 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 123 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 124 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 125 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 126 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 127 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 128 Sales of Cigarettes by Length 2003-2008
CIGARS IN PAKISTAN
HEADLINES
SMOKING TOBACCO IN PAKISTAN
HEADLINES
SMOKELESS TOBACCO IN PAKISTAN
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 129 Sales of Smokeless Tobacco by Subsector: Volume 2003-2008
Table 130 Sales of Smokeless Tobacco by Subsector: Value 2003-2008
Table 131 Sales of Smokeless Tobacco by Subsector: % Volume Growth 2003-2005
Table 132 Sales of Smokeless Tobacco by Subsector: % Value Growth 2003-2005
Table 133 Sales of Smokless Tobacco by Distribution Format: % Analysis 2003-2008