Tobacco in Portugal
Euromonitor International's Tobacco in Portugal 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: 63 | Publication date: Jan 2007
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Executive summary
Rising unit prices drive the positive development of RYO tobacco in 2005
RYO tobacco showed solid growth in volume and current value terms in 2005, despite generally unfavourable conditions in the Portuguese tobacco market. Unit prices rose sharply across the market during the review period, making it difficult for many consumers to justify their regular expenditure on machine-made cigarettes brands. Accordingly, RYO tobacco products became an increasingly attractive alternative due to their offering of greater value for money. Traditionally, the development of RYO tobacco in Portugal was limited by the inconvenience associated with having to spend time hand-rolling cigarettes, as well as having to purchase papers and filters separately. High unit prices for machine made cigarettes brands meant that more consumers were willing to over look this inconvenience in 2005. The development of subsector was also boosted by the availability of RYO tobacco brands in a wider variety of outlets.
High tar cigarettes category is eliminated over 2003-2004
In 2004, new restrictions on tar levels brought about the disappearance of the high tar category from the cigarettes sector. The maximum level was set at 10mg, prompting many companies to reduce tar levels in their existing high tar brands and reposition them in the mid tar category. Accordingly, the volume share of the mid tar category within cigarettes increased significantly over 2003-2004. In 2005, rising awareness of the health risks associated with smoking supported an increase in the sector volume share of the ultra low tar cigarettes category. Consumer awareness of the dangers of smoking was reinforced throughout the review period as the government adopted several new measures to fight tobacco consumption. These included bigger health warnings on packs, restrictions on tobacco advertising and the establishment of the Portuguese Tobacco Control Coalition (COPPT), all in line with Portugal’s ratification of the Framework Convention on Tobacco Consumption (FCTC).
Health concerns drive the positive development of ultra low tar cigarettes
Ultra low tar cigarettes brands proved increasingly popular in Portugal in 2005, main due to rising consumer concerns about the health risks associated with smoking. Many consumers switched to ultra low tar brands in order to reduce their tar intake without cutting back on the number of cigarettes they smoked, while for others the move was a stepping stone towards quitting the habit completely. The positive development of ultra low tar cigarettes was also driven by higher penetration for ultra low tar brands in a variety of outlets or locations, including those in the bar-tobacconists, newsagent-tobacconists/kiosks and vending channels. The Portuguese cigarettes sector is facing a number of long-term problems, as the government and various anti-smoking lobby groups are determined to reduce tobacco consumption in the country. Thanks to its ‘healthier’ positioning however, the ultra low tar category will be the only one within the cigarettes sector to show growth in volume sales over 2005-2010.
Lower unit prices benefit small cigars and cigarillos in 2005
Cigarillos and small cigars both developed positively in volume and current value terms in 2005, underpinning a good performance for the cigars sector as a whole. During the review period, small cigars and cigarillos were increasingly preferred over large cigars for two reasons. Firstly, they were considerably cheaper than large cigars. Secondly, increasingly hectic lifestyles meant that many consumers did not have the time required to smoke large cigars, making small cigars and cigarillos a more convenient option. Cigarillos also benefited as many cigarettes smokers made the switch to the subsector, either as a stepping stone towards quitting completely or as a more acceptable alternative to regular cigarette smoking.
Rising price-sensitivity limits the development of large cigars
Large cigars volume sales declined in 2005, for a number of reasons. Firstly, tax increases meant that unit prices for large cigars were significantly more expensive than those for smaller equivalents, and this proved the most influential factor for many consumers. Secondly, the image of luxury and affluence traditionally associated with large cigars became increasingly outdated, encouraging more consumers to switch to cheaper and more convenient small cigars and cigarillos. Over the forecast period, it is expected that small cigars and cigarillos will continue to make gains at the expense of large cigars.
Table of contents
TOBACCO IN PORTUGAL : MARKET INSIGHT
EXECUTIVE SUMMARY
Rising unit prices drive the positive development of RYO tobacco in 2005
High tar cigarettes category is eliminated over 2003-2004
Health concerns drive the positive development of ultra low tar cigarettes
Lower unit prices benefit small cigars and cigarillos in 2005
Rising price-sensitivity limits the development of large cigars
KEY TRENDS AND IMPACT ASSESSMENT
Smoking Population
Death by Cause
Legislation
Litigation
Taxation and Duty Levies
Table 1 Taxation and Duty Levies 2001-2005
Contraband (Cigarettes)
Production/Imports/Exports
Table 2 Trade Statistics – Cigarettes
Table 3 Trade Statistics – Tobacco Production
The Role and Effect of Cannabis/Marijuana
Cigarettes: Price Bands
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Rising health concerns will impact negatively on the tobacco market
RYO tobacco benefits from price hikes in cigarettes
MARKET INDICATORS
Table 4 Number of Smokers by Gender 2000-2005
Table 5 Deaths by Diseases of the Respiratory System 2000-2005
Table 6 Deaths from Heart Disease 2000-2005
Table 7 Deaths from Lung Cancer 2000-2005
Table 8 Contraband Cigarettes Penetration Estimate 2000-2005
MARKET DATA
Table 9 Retail Sales of Tobacco by Sector: Value 2000-2005
Table 10 Retail Sales of Tobacco by Sector: Volume 2000-2005
Table 11 Retail Sales of Tobacco by Sector: % Value Growth 2000-2005
Table 12 Retail Sales of Tobacco by Sector: % Volume Growth 2000-2005
Table 13 Retail Sales of Cigarettes by Distribution Format: % Analysis 2000/2005
Table 14 Forecast Retail Sales of Tobacco by Sector: Volume 2005-2010
Table 15 Forecast Retail Sales of Tobacco by Sector: Value 2005-2010
Table 16 Forecast Retail Sales of Tobacco by Sector: % Volume Growth 2005-2010
Table 17 Forecast Retail Sales of Tobacco by Sector: % Value Growth 2005-2010
DEFINITIONS
LOCAL COMPANY PROFILES - PORTUGAL
BRITISH AMERICAN TOBACCO PLC - TOBACCO - PORTUGAL
STRATEGIC DIRECTION
KEY FACTS
Summary 1 British American Tobacco Portugal: Key Facts
Summary 2 British American Tobacco Plc: Operational Indicators
COMPANY BACKGROUND
Production by Factory
COMPETITIVE POSITIONING
TABAQUEIRA SA - EMPRESA INDUSTRIAL DE TABACOS SA - TOBACCO - PORTUGAL
STRATEGIC DIRECTION
KEY FACTS
Summary 3 Tabaqueira SA: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
CIGARETTES IN PORTUGAL
HEADLINES
Trends
COMPETITIVE LANDSCAPE
Prospects
SECTOR DATA
Table 18 Retail Sales of Cigarettes by Tar Level: Volume 2000-2005
Table 19 Retail Sales of Cigarettes by Tar Level: Value 2000-2005
Table 20 Retail Sales of Cigarettes by Tar Level: % Volume Growth 2000-2005
Table 21 Retail Sales of Cigarettes by Tar Level: % Value Growth 2000-2005
Table 22 Cigarettes Company Shares 2001-2005
Table 23 Cigarettes Brand Shares 2002-2005
Table 24 Forecast Retail Sales of Cigarettes by Tar Level: Volume 2005-2010
Table 25 Forecast Retail Sales of Cigarettes by Tar Level: Value 2005-2010
Table 26 Forecast Retail Sales of Cigarettes by Tar Level: % Volume Growth 2005-2010
Table 27 Forecast Retail Sales of Cigarettes by Tar Level: % Value Growth 2005-2010
Table 28 Retail Sales of Cigarettes by Price Band: %Volume Breakdown 2000-2005
Table 29 Forecast Retail Sales of Cigarettes by Price Band: %Volume Breakdown 2005-2010
Table 30 Retail Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2000-2005
Table 31 Forecast Retail Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2005-2010
Table 32 Retail Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2000-2005
Table 33 Forecast Retail Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2005-2010
Table 34 Retail Sales of Cigarettes by Filter Vs Non-filter 2000-2005
Table 35 Retail Sales of Filter Cigarettes by Carbon Vs Non-carbon 2000-2005
Table 36 Retail Sales of Cigarettes by Length 2000-2005
Table 37 Retail Sales of Cigarettes by Pack Size 2000-2005
Table 38 Retail Sales of Cigarettes by Pack Ttype 2000-2005
CIGARS IN PORTUGAL
HEADLINES
Trends
COMPETITIVE LANDSCAPE
Prospects
SECTOR DATA
Table 39 Retail Sales of Cigars by Subsector: Value 2000-2005
Table 40 Retail Sales of Cigars by Subsector: Volume 2000-2005
Table 41 Retail Sales of Cigars by Subsector: % Value Growth 2000-2005
Table 42 Retail Sales of Cigars by Subsector: % Volume Growth 2000-2005
Table 43 Retail Company Shares of Cigars 2001-2005
Table 44 Retail Brand Shares of Cigars 2002-2005
Table 45 Forecast Retail Sales of Cigars by Subsector: Value 2005-2010
Table 46 Forecast Retail Sales of Cigars by Subsector: Volume 2005-2010
Table 47 Forecast Retail Sales of Cigars by Subsector: % Value Growth 2005-2010
Table 48 Forecast Retail Sales of Cigars by Subsector: % Volume Growth 2005-2010
SMOKING TOBACCO IN PORTUGAL
HEADLINES
COMPETITIVE LANDSCAPE
Prospects
SECTOR DATA
Table 49 Retail Sales of Smoking Tobacco by Subsector: Value 2000-2005
Table 50 Retail Sales of Smoking Tobacco by Subsector: Volume 2000-2005
Table 51 Retail Sales of Smoking Tobacco by Subsector: % Value Growth 2000-2005
Table 52 Retail Sales of Smoking Tobacco by Subsector: % Volume Growth 2000-2005
Table 53 Retail Company Shares of RYO Tobacco 2001-2005
Table 54 Retail Brand Shares of RYO Tobacco 2002-2005
Table 55 Retail Company Shares of Pipe Tobacco 2001-2005
Table 56 Retail Brand Shares of Pipe Tobacco 2002-2005
Table 57 Forecast Retail Sales of Smoking Tobacco by Subsector: Value 2005-2010
Table 58 Forecast Retail Sales of Smoking Tobacco by Subsector: Volume 2005-2010
Table 59 Forecast Retail Sales of Smoking Tobacco by Subsector: % Value Growth 2005-2010
Table 60 Forecast Retail Sales of Smoking Tobacco by Subsector: % Volume Growth 2005-2010