Tobacco in Singapore
Euromonitor International's Tobacco in Singapore 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: 84 | Publication date: Feb 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
Buoyant Economy Fails to Ignite Dwindling Tobacco Volume
Singapore was spared a tax increase in 2006 for the first time in the review period, yet sales volume for cigarettes shrank once again for the 10th year in a row since 1997. Value sales declined too, for the first time in the review period. The Singapore GDP grew by a better than expected 8% in 2006, doing well for the third year in a row. Tourism figures surpassed nine million visitors with one million coming from China alone. Though globalization has created prosperity, it has also put more pressure on workers in Singapore, with competition increasing from China, India and Vietnam. This has resulted in considerably lower than average increases in workers' wages; for some workers, wages have even stagnated. On the other hand, prices for cigarettes continued to increase and as a result, average consumption continued to fall, negatively affecting volume.
Cigarettes Continues To Be the Leading Tobacco Product
Cigarettes accounted for nearly 98% of total tobacco value sales in 2006, followed by RYO tobacco, cigars and beedis. The fitness-conscious Singaporeans were served with a choice of menthol and light filtered cigarettes to whet their growing appetite for reputedly less harmful products. The big multinational players consolidated their positions in the premium segment whilst they developed strength in the fast-growing economy segment. A few new variants were launched in the lower tar and menthol categories, more vibrant packaging graphics were used to standardise the overall look of brands, price increases were made to absorb higher operational costs and a couple of brands were removed from the market to simplify product portfolios and concentrate resources. RYO tobacco was the next biggest product category, which showed growth with the influx of cheaper brands from across the region. However, the increasing volume of contraband cigarettes adversely affected RYO tobacco, and consumers remained divided between these two kinds of products. Cigars and pipe tobacco remained small niche categories. Whilst value and volume sales of cigars declined in 2006, pipe tobacco showed healthy growth.
Viceroy Gains, Economy Cigarettes Fires Up An Otherwise Lacklustre Performance
Viceroy has intensified its fight to regain lost share to the regional players that had gained at its expense earlier in the review period. Viceroy in particular is recovering and growing strongly, followed closely by Next, which is rapidly catching up to Viceroy and finding favour amongst young consumers. Overall, Philip Morris Singapore Pte Ltd extended its lead in 2006 with Marlboro clearly retaining its brand leadership and premium imagery and Next establishing a beachhead in the economy segment. British American Tobacco (Singapore) Ltd narrowed the gap with the leader, aided by the strong performance of Viceroy, which sought to establish a clear leadership position in the economy segment.
Consumers Are Forced to Downtrade
Barring 2006, taxes increased 15-20% each year in the review period. As a result, cigarette pack prices soared, so much so that premium cigarettes have become too expensive for the core consumer groups of blue-collar workers, executives and students who smoke as much as two packs in three days. To meet the smoking needs of these groups, an economy-priced segment has rapidly emerged and is finding increasing favour amongst these consumers as well as the manufacturers. With the entry of big players in this segment with excellent packaging and a wide variety of flavours and tar levels, the perception of these brands as being of inferior quality and meant for lower-income consumers is rapidly changing, and both men and women are wholeheartedly switching from premium brands to these growing economy brands.
Smoking Bans and Contraband Control: Key Market Issues
The industry players are struggling to adjust to the changing regulations in an already very strictly regulated and highly taxed market. Smoking bans introduced in public eateries in 2006 and new mandatory health warning graphics have been enacted. Further smoking bans for bars and pubs were announced in mid-2007, and the Singapore government is likely to continue its strong legislative policies aimed at controlling the use of tobacco products and providing a smoke-free environment for non-smokers.
Contraband trade has also mushroomed, as the prices of cigarettes increased more than half during the review period. Significant government revenues have been lost and the government has intensified its efforts to halt this illegal trade. The authorities have increased fines, put more officers on the job and started a public education campaign in attempts to stop the smuggling. High demand for the contraband comes from high prices in Singapore, where a pack of premium cigarettes costs more than S$11, compared to just S$3 across the border in Malaysia. A contraband pack costs S$5.
Table of contents
TOBACCO IN SINGAPORE : MARKET INSIGHT
EXECUTIVE SUMMARY
Buoyant Economy Fails to Ignite Dwindling Tobacco Volume
Cigarettes Continues To Be the Leading Tobacco Product
Viceroy Gains, Economy Cigarettes Fires Up An Otherwise Lacklustre Performance
Consumers Are Forced to Downtrade
Smoking Bans and Contraband Control: Key Market Issues
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
Tar
Health Warnings
Duty Paid Packet Marks
Advertising and Sponsorship
Smoking in Public Places
Cigarette Packs
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies 2001-2006
Table 4 Average Cigarette Pack Price Breakdown: Brand Examples
Production/Imports/Exports
Table 5 Trade Statistics – Cigarettes 2001-2006
The Role and Effect of Cannabis/Marijuana
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 - SINGAPORE
BRITISH AMERICAN TOBACCO (SINGAPORE) LTD - TOBACCO - SINGAPORE
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco (Singapore) Ltd: Key Facts
Summary 3 British American Tobacco (Singapore) Ltd: Operational Indicators 2006
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 4 British American Tobacco (Singapore) Ltd: Competitive Position 2006
DAVIDOFF GRAND HYATT, SINGAPORE - TOBACCO - SINGAPORE
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Davidoff Grand Hyatt, Singapore: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 6 Davidoff Grand Hyatt, Singapore: Competitive Position 2006
JAPAN TOBACCO INTERNATIONAL (SINGAPORE) PTE LTD - TOBACCO - SINGAPORE
STRATEGIC DIRECTION
KEY FACTS
Summary 7 Japan Tobacco International (Singapore) Pte Ltd: Key Facts
Summary 8 Japan Tobacco International Tobacco (Singapore) Pte Ltd: Operational Indicators 2006
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 9 Japan Tobacco International (Singapore) Pte Ltd: Competitive Position 2006
NANYANG BROS TOBACCO CO LTD - TOBACCO - SINGAPORE
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Nanyang Bros Tobacco Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 11 Nanyang Bros Tobacco Pte Ltd: Competitive Position 2006
PHILIP MORRIS SINGAPORE PTE LTD - TOBACCO - SINGAPORE
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Philip Morris Singapore Pte Ltd: Key Facts
Summary 13 Philip Morris Singapore Pte Ltd: Operational Indicators 2006
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 14 Philip Morris Singapore Pte Ltd: Competitive Position 2006
CIGARETTES IN SINGAPORE
HEADLINES
TRENDS
Illicit Trade (Cigarettes)
Cigarettes: Price Bands
Cigarettes: Filter Splits
Table 19 Slims/superslims Penetration 2006
Cigarettes: Pack Splits
COMPETITIVE LANDSCAPE
Summary 15 Cigarettes: New Product Launches/Withdrawals 2006
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 SINGAPORE
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 Excluding Cigarillos 2002-2006
Table 51 Brand Shares of Cigars Excluding 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 SINGAPORE
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