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.
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: Oct 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
Tobacco Market Is in Decline
Like many countries around the world, the South Africa's tobacco market is in decline. This is due to a number of factors, but is predominantly related to health concerns, taxation and imposed legislation. There has been a trend of increased healthy lifestyles, and awareness about the dangers of smoking, which has been a significant factor in the decline of the market. Also tobacco allows a great opportunity for fiscal revenue which the government has exploited to the maximum. The market declined significantly in volume terms over the review period and certainly looks as though it will continue to do so in the future. This is across all tobacco sectors with cigarettes being the least affected due to the sheer size and volume of its sales.
Cigars Falls Victim to High Taxation
The sector most affected by this overall increase in "sin tax" is cigars. Due to the nature of the category (cigars being considered luxury items) and the high prices, cigars have been put out of financial reach for many middle-income consumers. Cigars have always been synonymous with corporate culture in South Africa, but middle-income consumers were, at one stage, able at to enjoy mid-range cigars as well. However, over the last few years, import duties, taxes and the weakening Rand have all played a significant role in making cigars too expensive for most consumers. Furthermore, with the global credit crunch, consumers' disposable incomes are shrinking and luxury items are the first to be taken off the shopping list.
New Proposed Legislation
In 2007, a bill – The Tobacco Products Control Amendment Bill – was proposed by the Department of Health. This was basically to show the world that South Africa was falling in line with the FCTC laid out by the World Health Organisation. It proposes a complete ban of smoking in public places, new definitions for tobacco advertising and higher fines for breaking of the law. However, it is unlikely that South Africa will ever be able to implement such a bill to its full extent as governmental services already have an enormous amount of pressure put on them to combat crime. It is unlikely that jail cells will begin to fill with law-breaking smokers as opposed to the high number of murderers, rapists and car jackers in the country. Therefore although this bill will affect tobacco, it is unlikely that it will be implemented thoroughly.
RYO Tobacco One of the Few Categories that Sees Positive Growth
Roll your own (RYO) tobacco has been in the country for some time. However, it has never been very popular as it has always been synonymous with lower-income consumers and drug consumers. However, with the price of cigarettes going up, it seems that this culture is picking up again. This is not only in the lower-income bracket, but also among middle-income consumers who are starting to see RYO tobacco as a good alternative to traditional cigarettes. This trend seems to be most popular among young consumers in the country and in many circles it has become fashionable to roll your cigarettes.
Proportion of Women Smokers Increases
In South Africa, it is far less common for woman to smoke. The majority of female smokers come from the white and coloured communities around the country. Traditionally, black and Indian smokers were not a common sight and it was usually men in these cultures who smoked. As these gendered traditions start to wear down, there has been a small yet significant number of smokers emerging from these population groups. However, smokers in these population groups generally come from middle- and upper-income consumer groups which also make up a smaller proportion of the population.
Table of contents
TOBACCO IN SOUTH AFRICA : MARKET INSIGHT
EXECUTIVE SUMMARY
Tobacco Market Is in Decline
Cigars Falls Victim to High Taxation
New Proposed Legislation
RYO Tobacco One of the Few Categories that Sees Positive Growth
Proportion of Women Smokers Increases
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2002-2007
Table 2 Number of Smokers by Gender 2002-2007
Death by Cause
Legislation
Legislation: South African Law
Health Warnings
Summary 1 Warnings on Tobacco Products in South Africa
Summary 2 The Legally Prescribed Warnings
Duty Paid Packet Marks
Advertising & Sponsorship
Smoking in Public Places
Litigation
Taxation and Duty Levies
Table 3 Taxation and Duty Levies – Cigarettes 2002-2007
Production/Imports/Exports
Table 4 Trade Statistics – Cigarettes 2003-2007
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 5 Illicit Trade Estimate 2002-2007
MARKET DATA
Table 6 Sales of Tobacco by Sector: Volume 2002-2007
Table 7 Sales of Tobacco by Sector: Value 2002-2007
Table 8 Sales of Tobacco by Sector: % Volume Growth 2002-2007
Table 9 Sales of Tobacco by Sector: % Value Growth 2002-2007
Table 10 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007
Table 11 Forecast Sales of Tobacco by Sector: Volume 2007-2012
Table 12 Forecast Sales of Tobacco by Sector: Value 2007-2012
Table 13 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012
Table 14 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012
DEFINITIONS
Summary 3 Research Sources
LOCAL COMPANY PROFILES - SOUTH AFRICA
BRASANT ENTERPRISES PTY LTD - TOBACCO - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Brasant Enterprises Pty Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 Brasant Enterprises Pty Ltd: Competitive Position 2007
BRITISH AMERICAN TOBACCO (SOUTH AFRICA) LTD - TOBACCO - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 British American Tobacco (South Africa) Ltd: Key Facts
Summary 7 British American Tobacco (South Africa) Ltd: Operational Indicators 2005-2007
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 8 British American Tobacco (South Africa) Ltd: Competitive Position 2007
JT INTERNATIONAL SOUTH AFRICA (PTY) LTD - TOBACCO - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 9 JT International South Africa (Pty) Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 JT International South Africa (Pty) Ltd: Competitive Position 2007
MASTERMIND TOBACCO SA (PTY) LTD - TOBACCO - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 11 Mastermind Tobacco SA (Pty) Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 12 Mastermind Tobacco SA (Pty) Ltd: Competitive Position 2007
PHILIP MORRIS SOUTH AFRICA (PTY) LTD - TOBACCO - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 13 Philip Morris South Africa (Pty) Ltd: Key Facts
Summary 14 Philip Morris South Africa (Pty) Ltd: Operational Indicators 2005-2007
COMPANY BACKGROUND
PRODUCTION
Summary 15 Philip Morris South Africa (Pty) Ltd: Production Statistics 2007
COMPETITIVE POSITIONING
Summary 16 Philip Morris South Africa (Pty) Ltd: Competitive Position 2007
WESLEYS SA (PTY) LTD - TOBACCO - SOUTH AFRICA
STRATEGIC DIRECTION
KEY FACTS
Summary 17 Wesley's SA (Pty) Ltd: Key Facts
Summary 18 Wesley's SA (Pty) Ltd: Operational Indicators 2005-2007
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
CIGARETTES IN SOUTH AFRICA
HEADLINES
TRENDS
Illicit Trade (Cigarettes)
Cigarettes: Price Bands
Summary 19 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
Overview
New Product Developments
Summary 20 New Product Launches
PROSPECTS
SECTOR DATA
Table 15 Sales of Cigarettes by Tar Level: Volume 2002-2007
Table 16 Sales of Cigarettes by Tar Level: Value 2002-2007
Table 17 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007
Table 18 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007
Table 19 Sales of Cigarettes by Price Band: % Volume Breakdown 2002-2007
Table 20 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2002-2007
Table 21 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2002-2007
Table 22 Sales of Cigarettes by Filter vs Non-filter 2002-2007
Table 23 Sales of Filter Cigarettes by Carbon vs Non-carbon 2002-2007
Table 24 Sales of Cigarettes by Length 2002-2007
Table 25 Sales of Cigarettes by Regular/Slim 2006-2007
Table 26 Sales of Cigarettes by Pack Size 2002-2007
Table 27 Sales of Cigarettes by Pack Type 2002-2007
Table 28 Cigarettes Company Shares 2003-2007
Table 29 Cigarettes Brand Shares 2004-2007
Table 30 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012
Table 31 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012
Table 32 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
Table 33 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
Table 34 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012
Table 35 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012
Table 36 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012
Table 37 Forecast Sales of Cigarettes by Filter vs Non-filter 2007-2012
Table 38 Forecast Sales of Filter Cigarettes by Carbon vs Non-carbon 2007-2012
Table 39 Forecast Sales of Cigarettes by Length 2007-2012
Table 40 Forecast Sales of Cigarettes by Regular/Slim 2007-2012
Table 41 Forecast Sales of Cigarettes by Pack Size 2007-2012
Table 42 Forecast Sales of Cigarettes by Pack Type 2007-2012
CIGARS IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
PROSPECTS
SECTOR DATA
Table 43 Sales of Cigars by Subsector: Volume 2002-2007
Table 44 Sales of Cigars by Subsector: Value 2002-2007
Table 45 Sales of Cigars by Subsector: % Volume Growth 2002-2007
Table 46 Sales of Cigars by Subsector: % Value Growth 2002-2007
Table 47 Company Shares of Cigars Exluding Cigarillos 2003-2007
Table 48 Brand Shares of Cigars Exluding Cigarillos 2004-2007
Table 49 Company Shares of Cigarillos 2003-2007
Table 50 Brand Shares of Cigarillos 2004-2007
Table 51 Forecast Sales of Cigars by Subsector: Volume 2007-2012
Table 52 Forecast Sales of Cigars by Subsector: Value 2007-2012
Table 53 Forecast Sales of Cigars by Subsector: % Volume Growth 2007-2012
Table 54 Forecast Sales of Cigars by Subsector: % Value Growth 2007-2012
SMOKING TOBACCO IN SOUTH AFRICA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
New Product Developments
PROSPECTS
SECTOR DATA
Table 55 Sales of Smoking Tobacco by Subsector: Volume 2002-2007
Table 56 Sales of Smoking Tobacco by Subsector: Value 2002-2007
Table 57 Sales of Smoking Tobacco by Subsector: % Volume Growth 2002-2007
Table 58 Sales of Smoking Tobacco by Subsector: % Value Growth 2002-2007
Table 59 Company Shares of Pipe Tobacco 2003-2007
Table 60 Brand Shares of Pipe Tobacco 2004-2007
Table 61 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012
Table 62 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012
Table 63 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012
Table 64 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012