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: 61 | 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 Research Sources
CIGARETTES
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
Sector Background
Cigarettes: Price Bands
Summary 2 Cigarette Price Band Definitions
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 15 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 16 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 17 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 18 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 19 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 20 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 21 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 22 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 23 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 24 Sales of Cigarettes by Length 2003-2008
Table 25 Sales of Cigarettes by Regular/Slim 2006-2008
Table 26 Sales of Cigarettes by Pack Size 2003-2008
Table 27 Sales of Cigarettes by Pack Type 2003-2008
Table 28 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 29 Cigarettes Company Shares 2004-2008
Table 30 Cigarettes Brand Shares 2005-2008
Table 31 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013
Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 36 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 37 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 39 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 40 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 41 Forecast Sales of Cigarettes by Length 2008-2013
Table 42 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 43 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 44 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS AND CIGARILLOS
Headlines
SMOKING TOBACCO
Headlines
SMOKELESS TOBACCO
Headlines
Trends
Distribution
Competitive Landscape
New Product Developments
Prospects
Sector Data
Table 45 Sales of Smokeless Tobacco by Subsector: Volume 2003-2008
Table 46 Sales of Smokeless Tobacco by Subsector: Value 2003-2008
Table 47 Sales of Smokeless Tobacco by Subsector: % Volume Growth 2003-2005
Table 48 Sales of Smokeless Tobacco by Subsector: % Value Growth 2003-2005
Table 49 Sales of Smokless Tobacco by Distribution Format: % Analysis 2003-2008
KHYBER TOBACCO COMPANY
Strategic Direction
Key Facts
Summary 3 Khyber Tobacco Company: Key Facts
Summary 4 Khyber Tobacco Company: Operational Indicators
Company Background
Competitive Positioning
LAKSON TOBACCO CO LTD
Strategic Direction
Key Facts
Summary 5 Lakson Tobacco Co Ltd: Key Facts
Summary 6 Lakson Tobacco Co Ltd: Operational Indicators
Company Background
Production
Summary 7 Lakson Tobacco Co Ltd: Production Statistics 2007
Competitive Positioning
Summary 8 Lakson Tobacco Co Ltd: Competitive Position 2008
PAKISTAN TOBACCO CO LTD
Strategic Direction
Key Facts
Summary 9 Pakistan Tobacco Co Ltd: Key Facts
Summary 10 Pakistan Tobacco Co Ltd: Operational Indicators
Company Background
Production
Summary 11 Pakistan Tobacco Co Ltd: Production Statistics 2007
Competitive Positioning
Summary 12 Pakistan Tobacco Co Ltd: Competitive Position 2008