Tobacco in South Africa
Euromonitor International's Tobacco in South Africa 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: 62 | Publication date: Jan 2007
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Executive summary
Cigarettes struggles to grow in volume terms in 2005
Sales of cigarettes increased in value terms but decreased in volume terms in 2005. Value growth was driven firstly by the increasing number of teenagers who started to smoke – the number of new starters initially outweighed the number of smokers who managed to break the habit – and secondly by the rise in the selling price.
In South Africa, help is available for those who want to quit smoking; there is also an increased awareness that smoking is harmful to health. However, despite all of these endeavours, smoking is still culturally accepted and many teenagers, in particular, perceive smoking as a way of rebelling.
Taxation is rising
Rising taxation rates in South Africa have impacted almost every aspect of the tobacco industry. After reducing taxes in an effort to tackle smuggling, taxation rates rose strongly in recent years This helped to restrict the rise in the number of smuggled cigarettes Industry profits have remained high, due to price increases by various cigarette manufacturers such as British American Tobacco (South Africa) Ltd, which owns leading brands such as Peter Stuyvesant, Rothmans and Benson & Hedges.
Further regulations
Higher taxes are not the only issue facing smokers in South Africa. The number of new regulations combined with new legislation banning smoking in restaurants, bars, office areas and other public places increased over the review period. These regulations are enacted under workplace health and safety laws in order to protect employees from passive smoke. Smoking areas are provided, which minimise the concerns about the impact of smoking on the hospitality industry.
Legislation – the most affective control measure
Legislation plays a significant role in preventing the harmful effects of tobacco products on the South African population. Legislation to control the use of tobacco has led to smoke-free public places, health warnings on all tobacco products and the implementation of a law stating that minors (16-years-old-and under) are not allowed to purchase tobacco products.
Trend towards cigarillos
Smoking cigarillos became an unexpected lifestyle choice over the review period. Whilst volume sales decreased, value sales rose. These are popular with young smokers, and a growing number of female smokers. Cigarillos benefit from consumption by fashionable South African female users.
Mid tar, low tar and ultra low tar cigarettes gaining popularity due to their lower tar content
Mid, low and ultra low tar cigarettes outperformed high tar cigarettes over the review period. This trend is expected to continue over the forecast period, as consumers are constantly seeking healthier lifestyles.
Table of contents
TOBACCO IN SOUTH AFRICA : MARKET INSIGHT
EXECUTIVE SUMMARY
Cigarettes struggles to grow in volume terms in 2005
Taxation is rising
Further regulations
Legislation – the most affective control measure
Trend towards cigarillos
Mid tar, low tar and ultra low tar cigarettes gaining popularity due to their lower tar content
KEY TRENDS AND IMPACT ASSESSMENT
Smoking Population
Summary 1 Smoking Prevalence in South Africa 2000-2005
Death by Cause
Legislation
Amendments and changes
Tar
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 1 Tobacco Taxation 1998-2003
Contraband (Cigarettes)
Production/Imports/Exports
Table 2 Trade Statistics – Cigarettes
The Role and Effect of Cannabis/Marijuana
Cigarettes: Price Bands
Cigarettes: Filter Splits
Cigarettes: Pack Splits
MARKET INDICATORS
Table 3 Number of Smokers by Gender 2000-2005
Table 4 Deaths from Heart Disease 2000-2005
Table 5 Deaths from Lung Cancer 2000-2005
Table 6 Contraband Cigarettes Penetration Estimate 2000-2005
MARKET DATA
Table 7 Retail Sales of Tobacco by Sector: Value 2000-2005
Table 8 Retail Sales of Tobacco by Sector: Volume 2000-2005
Table 9 Retail Sales of Tobacco by Sector: % Value Growth 2000-2005
Table 10 Retail Sales of Tobacco by Sector: % Volume Growth 2000-2005
Table 11 Retail Sales of Cigarettes by Distribution Format: % Analysis 2000/2005
Table 12 Forecast Retail Sales of Tobacco by Sector: Volume 2005-2010
Table 13 Forecast Retail Sales of Tobacco by Sector: Value 2005-2010
Table 14 Forecast Retail Sales of Tobacco by Sector: % Volume Growth 2005-2010
Table 15 Forecast Retail Sales of Tobacco by Sector: % Value Growth 2005-2010
DEFINITIONS
LOCAL COMPANY PROFILES - SOUTH AFRICA
BRITISH AMERICAN TOBACCO (SOUTH AFRICA) LTD - TOBACCO - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco (South Africa) Ltd: Key Facts
Summary 3 British American Tobacco Plc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
JAPAN TOBACCO INTERNATIONAL - TOBACCO - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Japan Tobacco International: Key Facts
Summary 5 Japan Tobacco International: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
MASTERMIND TOBACCO SA (PTY) LTD - TOBACCO - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Mastermind Tobacco SA (Pty) Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
CIGARETTES IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 16 Retail Sales of Cigarettes by Tar Level: Volume 2000-2005
Table 17 Retail Sales of Cigarettes by Tar Level: Value 2000-2005
Table 18 Retail Sales of Cigarettes by Tar Level: % Volume Growth 2000-2005
Table 19 Retail Sales of Cigarettes by Tar Level: % Value Growth 2000-2005
Table 20 Cigarettes Company Shares 2001-2005
Table 21 Cigarettes Brand Shares 2002-2005
Table 22 Forecast Retail Sales of Cigarettes by Tar Level: Volume 2005-2010
Table 23 Forecast Retail Sales of Cigarettes by Tar Level: Value 2005-2010
Table 24 Forecast Retail Sales of Cigarettes by Tar Level: % Volume Growth 2005-2010
Table 25 Forecast Retail Sales of Cigarettes by Tar Level: % Value Growth 2005-2010
Table 26 Retail Sales of Cigarettes by Price Band: %Volume Breakdown 2000-2005
Table 27 Forecast Retail Sales of Cigarettes by Price Band: %Volume Breakdown 2005-2010
Table 28 Retail Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2000-2005
Table 29 Forecast Retail Sales of Cigarettes by Standard/Menthol: %Volume Breakdown 2005-2010
Table 30 Retail Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2000-2005
Table 31 Forecast Retail Sales of Cigarettes by Tobacco Type: %Volume Breakdown 2005-2010
Table 32 Retail Sales of Cigarettes by Filter Vs Non-filter 2000-2005
Table 33 Retail Sales of Filter Cigarettes by Carbon Vs Non-carbon 2000-2005
Table 34 Retail Sales of Cigarettes by Length 2000-2005
Table 35 Retail Sales of Cigarettes by Pack Size 2000-2005
Table 36 Retail Sales of Cigarettes by Pack Ttype 2000-2005
CIGARS IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 37 Retail Sales of Cigars by Subsector: Value 2000-2005
Table 38 Retail Sales of Cigars by Subsector: Volume 2000-2005
Table 39 Retail Sales of Cigars by Subsector: % Value Growth 2000-2005
Table 40 Retail Sales of Cigars by Subsector: % Volume Growth 2000-2005
Table 41 Retail Company Shares of Cigars 2001-2005
Table 42 Retail Brand Shares of Cigars 2002-2005
Table 43 Forecast Retail Sales of Cigars by Subsector: Value 2005-2010
Table 44 Forecast Retail Sales of Cigars by Subsector: Volume 2005-2010
Table 45 Forecast Retail Sales of Cigars by Subsector: % Value Growth 2005-2010
Table 46 Forecast Retail Sales of Cigars by Subsector: % Volume Growth 2005-2010
SMOKING TOBACCO IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 47 Retail Sales of Smoking Tobacco by Subsector: Value 2000-2005
Table 48 Retail Sales of Smoking Tobacco by Subsector: Volume 2000-2005
Table 49 Retail Sales of Smoking Tobacco by Subsector: % Value Growth 2000-2005
Table 50 Retail Sales of Smoking Tobacco by Subsector: % Volume Growth 2000-2005
Table 51 Retail Company Shares of Pipe Tobacco 2001-2005
Table 52 Retail Brand Shares of Pipe Tobacco 2002-2005
Table 53 Forecast Retail Sales of Smoking Tobacco by Subsector: Value 2005-2010
Table 54 Forecast Retail Sales of Smoking Tobacco by Subsector: Volume 2005-2010
Table 55 Forecast Retail Sales of Smoking Tobacco by Subsector: % Value Growth 2005-2010
Table 56 Forecast Retail Sales of Smoking Tobacco by Subsector: % Volume Growth 2005-2010