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.
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: 67 | Publication date: Jan 2010
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Executive summary
Volume sales continue to increase
Despite increasing consumer awareness of the dangers of smoking, cigarettes volume sales continued to increase for the third consecutive year during 2008. Although a growing number of consumers in their 40s and 50s are giving up smoking, the rate of smoking continues to increase amongst women and teenagers according to unofficial statistics and retailer interviews. In addition, the growing number of immigrant workers in the country is also helping to boost volume sales.
Declining demand for ultra low tar cigarettes
The boom in demand for ultra low tar cigarettes subsided in 2008, with volume growth slowing to single digit territory. Although ultra low tar cigarettes are still popular among health-conscious smokers, a growing number of consumers are realising that ultra low tar levels do not provide protection against smoking related diseases. In addition, whilst new smokers tend to prefer ultra low cigarettes, many gradually shift towards stronger tasting 5mg and 6mg high tar cigarettes. Although manufacturers launched new 0.1mg tar products in 2008, volume growth of such products has stagnated since December 2008.
Rising demand for mid tar cigarettes
Demand for high tar cigarettes plummeted during the review period in the wake of rising consumer health awareness, with the result that no brands had a tar level of 8.5mg. However, in 2008 two new brands with tar levels of 9mg were unveiled in stylish black packaging designed to attract image conscious younger consumers. Whilst demand for stronger tasting cigarettes appears to be increasing, partly as a result of increased stress due to the economic downturn, sales of such products are likely to remain limited due to rising consumer health awareness.
Increased focus on non-price related tobacco deterrents
It was generally expected that cigarette prices would increase during 2008 due to the fact that prices had remained stable since 2005. However, the government decided to maintain current tax levels and to instead resort to non price-related measures in a bid to decrease the smoking rate in the country after realising that price increases typically had little impact on demand. As a result, cigarette prices remained stable during 2008 despite rising prices in most other consumer product areas. Instead, the government focused on strengthening cigarette warning label and anti-tobacco advertising legislation.
Positive volume growth projected for forecast period
Tobacco is expected to record marginal volume growth over the forecast period, with demand being fuelled by increasing smoking prevalence among younger consumers who increasingly turn to smoking in a reaction to the increasingly stressful pace of modern life.
Table of contents
TOBACCO IN SOUTH KOREA : MARKET INSIGHT
EXECUTIVE SUMMARY
Volume sales continue to increase
Declining demand for ultra low tar cigarettes
Rising demand for mid tar cigarettes
Increased focus on non-price related tobacco deterrents
Positive volume growth projected for forecast period
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative overview/ FCTC ratification
Country-specific legislation:
Minimum legal smoking age
Tar levels
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
TAXATION AND DUTY LEVIES
Table 3 Taxation and Duty Levies
Table 4 Average Cigarette Pack Price Breakdown : Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 5 Trade Statistics – Cigarettes
MARKET INDICATORS
Table 6 Illicit Trade Estimate 2003-2008
MARKET DATA
Table 7 Sales of Tobacco by Sector: Volume 2003-2008
Table 8 Sales of Tobacco by Sector: Value 2003-2008
Table 9 Sales of Tobacco by Sector: % Volume Growth 2003-2008
Table 10 Sales of Tobacco by Sector: % Value Growth 2003-2008
Table 11 Forecast Sales of Tobacco by Sector: Volume 2008-2013
Table 12 Forecast Sales of Tobacco by Sector: Value 2008-2013
Table 13 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013
Table 14 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013
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
COMPETITIVE POSITIONING
Summary 3 British American Tobacco Korea Ltd: Competitive Position 2008
KT&G CORP - TOBACCO - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 4 KT&G Corp: Key Facts
Summary 5 KT&G Corp: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 6 KT&G Corp: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 7 KT&G Corp: Competitive Position 2008
PHILIP MORRIS KOREA INC - TOBACCO - SOUTH KOREA
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Philip Morris Korea Inc: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 9 Philip Morris Korea Inc: Competitive Position 2008
CIGARETTES IN SOUTH KOREA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 10 Cigarettes - New Product Launches/Withdrawals 2008
PROSPECTS
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 11 Cigarette Price Band Definitions
Cigarettes: Menthol/standard
Cigarettes: Filter/non-filter
Cigarettes: Carbon/standard filter
Cigarettes: Filter length
Cigarettes: Slims/superslims vs regular
Cigarettes: Pack size
Cigarettes: Pack type
SECTOR DATA
Table 15 Sales of Cigarettes by Tar Level: Volume 2003-2008
Table 16 Sales of Cigarettes by Tar Level: Value 2003-2008
Table 17 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008
Table 18 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008
Table 19 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008
Table 20 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008
Table 21 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008
Table 22 Sales of Cigarettes by Filter Vs Non-filter 2003-2008
Table 23 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008
Table 24 Sales of Cigarettes by Length 2003-2008
Table 25 Sales of Cigarettes by Regular/Slim 2006-2008
Table 26 Sales of Cigarettes by Pack Size 2003-2008
Table 27 Sales of Cigarettes by Pack Type 2003-2008
Table 28 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008
Table 29 Cigarettes Company Shares 2004-2008
Table 30 Cigarettes Brand Shares 2005-2008
Table 31 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008
Table 32 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 33 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 35 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 36 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 37 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 39 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 40 Forecast Sales of Cigarettes by Length 2008-2013
Table 41 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 42 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 43 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS IN SOUTH KOREA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 44 Sales of Cigars by Subsector: Volume 2003-2008
Table 45 Sales of Cigars by Subsector: Value 2003-2008
Table 46 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 47 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 48 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 49 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 50 Company Shares of Cigarillos 2004-2008
Table 51 Brand Shares of Cigarillos 2005-2008
Table 52 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 53 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 54 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 55 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 56 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO IN SOUTH KOREA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SMOKELESS TOBACCO IN SOUTH KOREA
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS