Tobacco in South Korea
Euromonitor International's Tobacco in South Korea 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: 64 | Publication date: Dec 2007
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
Cigarettes recovers in both volume and value terms
Following the depressive year of 2005, cigarettes in South Korea showed a rebound in both volume and value terms in 2006. As the new level of increased prices set in among consumers, the purchase level recovered. Additionally, there was an announced plan for a tax hike in the middle of the year, which prompted further stockpiling among many smokers. This plan did not materialise, however, and the overall price level remained the same as in 2005. Value growth stemmed from the general shift towards premium products, with a rush of new products in the premium price band.
Cigarillos benefits from expansion of the retail distribution network
Cigars in South Korea is almost non-existent. The exception is cigarillos, which made impressive volume and value growth from a small base in 2006. The major push for growth came from the expansion of the retail distribution network. As the products became more accessible to consumers, the curiosity factor played an important role in increased volume and value sales of the products. Although cigarillos is still very small within the tobacco market, it has established a base for future potential of cigars. By contrast, there was no change in the insignificant status of smoking tobacco in South Korea during the review period.
KT&G Corp faces increased competition
KT&G Corp is the undisputed leader of cigarettes in South Korea because of its long-term monopoly position. Nevertheless, the company saw competition intensify during the review period, with its volume share dropping accordingly. As a result, it actively and successfully pursued the international tobacco market. In order to regain its lost volume share, it introduced new ultra low tar products, including the first 0.5mg tar brand by the name of The One 0.5.
Lower tar is the mainstream of cigarettes
Tobacco in South Korea saw a rapid transition to lower tar cigarettes during the review period, as evidenced by the size of low and ultra low tar cigarettes. In 2006, ultra low tar cigarettes generated the highest volume and value sales, surpassing low tar cigarettes. New product developments were also highly concentrated in ultra low tar cigarettes, with particular emphasis on 1mg tar brands.
Many challenges forecast, mostly unfavourable
The performance of cigarettes in South Korea during the forecast period will depend on many new environmental changes, most of which are likely to be unfavourable. Governmental regulation will be the macro factor that determines the new price levels, as well as introducing several constraints that affect the smoking population. Growing concern and awareness of the harmful effects of cigarettes’ will contribute to bringing down the smoking rate. The volume of illicit trade was seen as minor in 2006, but is another consideration that the tobacco market will have to face alongside the growing price levels of domestic products.
Table of contents
TOBACCO IN SOUTH KOREA : MARKET INSIGHT
EXECUTIVE SUMMARY
OPERATING ENVIRONMENT
Smoking Population
Death by Cause
Legislation
Table 1 Taxation and Duty Levies
Table 2 Average Cigarette Pack Price Breakdown: Brand Examples
Production/Imports/Exports
Table 3 Trade Statistics – Cigarettes
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 4 Deaths by Diseases of the Respiratory System 2001-2006
Table 5 Deaths from Heart Disease 2001-2006
Table 6 Deaths from Lung Cancer 2001-2006
Table 7 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 8 Sales of Tobacco by Sector: Volume 2001-2006
Table 9 Sales of Tobacco by Sector: Value 2001-2006
Table 10 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 11 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 12 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 13 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 14 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 15 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 16 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Summary 1 Research Sources
LOCAL COMPANY PROFILES - SOUTH KOREA
BRITISH AMERICAN TOBACCO KOREA LTD - TOBACCO - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco Korea Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 3 British American Tobacco Korea Ltd: Competitive Position 2006
JT INTERNATIONAL KOREA INC - TOBACCO - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 JT International Korea Inc: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 5 JT International Korea Inc: Competitive Position 2006
KT&G CORP - TOBACCO - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 6 KT&G Corp: Key Facts
Summary 7 KT&G Corp: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 8 KT&G Corp: Production Statistics by Factory (billion sticks)
COMPETITIVE POSITIONING
Summary 9 KT&G: Competitive Position 2006
PHILIP MORRIS KOREA INC - TOBACCO - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Philip Morris Korea CH: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 11 Philip Morris Korea CH: Competitive Position 2006
CIGARETTES IN SOUTH KOREA
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Cigarettes: Filter Splits
Table 17 Slims/superslims Penetration
Cigarettes: Pack Splits
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 18 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 19 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 20 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 21 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 22 Sales of Cigarettes by Price Band: % Volume Breakdown 2001-2006
Table 23 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2001-2006
Table 24 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2001-2006
Table 25 Sales of Cigarettes by Filter Vs Non-filter 2001-2006
Table 26 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2001-2006
Table 27 Sales of Cigarettes by Length 2001-2006
Table 28 Sales of Cigarettes by Pack Size 2001-2006
Table 29 Sales of Cigarettes by Pack Type 2001-2006
Table 30 Cigarettes Company Shares 2002-2006
Table 31 Cigarettes Brand Shares 2003-2006
Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 36 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 37 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 38 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 39 Forecast Sales of Cigarettes by Filter Vs Non-filter 2006-2011
Table 40 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2006-2011
Table 41 Forecast Sales of Cigarettes by Length 2006-2011
Table 42 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 43 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN SOUTH KOREA
HEADLINES
TRENDS
PROSPECTS
SECTOR DATA
Table 44 Sales of Cigars by Subsector: Volume 2001-2006
Table 45 Sales of Cigars by Subsector: Value 2001-2006
Table 46 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 47 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 48 Company Shares of Cigarillos 2002-2006
Table 49 Brand Shares of Cigarillos 2003-2006
Table 50 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 51 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 52 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 53 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011