Tobacco
Tobacco

Tobacco in Sweden

Sweden

Euromonitor International's Tobacco in Sweden 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: 99  |  Publication date: Sep 2009
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Executive summary

Another year of declining volume sales

The Swedish tobacco market saw another year of falling sales in 2008 as all sectors posted a decline in volume terms. On the one hand, tax increases in early 2008 had a negative effect on volume sales, while social opposition to smoking, on the other, is also growing, underpinned by a booming health trend. As a result, the market’s consumer base is shrinking. The economic financial turmoil towards the end of 2008 also pushed many consumers to try to quit the habit or trade down to economy brands.

Tax rises across the industry in 2008

The major event affecting the Swedish tobacco market in 2008 was increased taxation on tobacco products. The tax increases were felt across the industry, making, for example, retail prices of cigarettes, cigars and cigarillos on average 3% more expensive, while smoking tobacco retail prices increased by almost 40% compared to 2007. The reason behind the significant increase on smoking tobacco was to eliminate tax differences between smoking tobacco and traditional cigarettes. As a result of the tax increases, the market posted stronger current value growth in 2008 compared to the review period CAGR.

Multinationals dominate the Swedish tobacco market

Tobacco in Sweden is rather consolidated and led by multinationals and their local subsidiaries. The major players are JTI Sweden AB, House of Prince AB, Philip Morris AB as well as domestic company Swedish Match AB. The leading multinationals have achieved their strong positions thanks to acquisitions of local operators as well as economies of scale, giving them advantages in terms of product development and ability to invest in advertising and promotional support for their products. Domestic player Swedish Match AB’s strength can be explained by its strong position in Swedish-style snus, which it completely dominated in 2008, despite increasing international presence and competition. Due to tax increases on tobacco as well as market entries such as Lidl, economy cigarette brands expanded their presence in Sweden over the review period. As a result, almost all of the leading multinationals lost share over the last five-year period.

Grocery retailers the most important distribution channel

The leading distribution channel for tobacco in Sweden is grocery retailers. The reason for this dominance is that consumers making food purchases tend to purchase cigarettes at the same time. Competition from other channels is low. Tobacco specialists are still present in Sweden and the channel’s share has slowly increased due to growing sales of speciality products.

Declining volume sales but positive constant value growth

With the exception of smokeless tobacco, volume sales of tobacco products are predicted to continue to decline over the forecast period, suffering from a declining number of smokers. Social opposition towards smoking, a strong health trend as well as a poor economic outlook are the factors that will undermine volume sales. However, the volume decline is expected to be lower than that of the review period. Volume growth of smokeless tobacco is predicted to be higher than that of the review period, boosted by consumers switching from cigarettes to Swedish-style snus. In constant value terms, tobacco products are, however, predicted to grow modestly compared to the small decline seen over the review period. This stronger performance will be a result of predicted tax increases over the forecast period, but also a result of the fact that declining volume sales will settle down over the coming years. However, the poor economic outlook is predicted to create greater demand for economy cigarettes. Should the economic recession be prolonged, therefore, constant value growth may well be lower than currently predicted.

Table of contents

TOBACCO IN SWEDEN : MARKET INSIGHT

EXECUTIVE SUMMARY

Another year of declining volume sales

Tax rises across the industry in 2008

Multinationals dominate the Swedish tobacco market

Grocery retailers the most important distribution channel

Declining volume sales but positive constant value growth

OPERATING ENVIRONMENT

Smoking Prevalence

Table 1 Smoking Prevalence in Population 2003-2008

Table 2 Number of Smokers by Gender 2003-2008

Death by Cause

Table 3 Deaths by Cause 2001-2008

The Role and Effect of Cannabis/Marijuana

LEGISLATION

Legislative overview/ FCTC ratification

Minimum legal smoking age

Tar levels

Health warnings

Duty paid packet marks

Advertising & Sponsorship

Smoking in public places

Litigation

Taxation and Duty Levies

Table 4 Taxation and Duty Levies

Table 5 Average Cigarette Pack Price Breakdown : Brand Examples

PRODUCTION/IMPORTS/EXPORTS

Table 6 Trade Statistics – Cigarettes

MARKET INDICATORS

Table 7 Illicit Trade Estimate 2003-2008

MARKET DATA

Table 8 Sales of Tobacco by Sector: Volume 2003-2008

Table 9 Sales of Tobacco by Sector: Value 2003-2008

Table 10 Sales of Tobacco by Sector: % Volume Growth 2003-2008

Table 11 Sales of Tobacco by Sector: % Value Growth 2003-2008

Table 12 Forecast Sales of Tobacco by Sector: Volume 2008-2013

Table 13 Forecast Sales of Tobacco by Sector: Value 2008-2013

Table 14 Forecast Sales of Tobacco by Sector: % Volume Growth 2008-2013

Table 15 Forecast Sales of Tobacco by Sector: % Value Growth 2008-2013

DEFINITIONS

Summary 1 Research Sources

LOCAL COMPANY PROFILES - SWEDEN

FIEDLER & LUNDGREN AB - TOBACCO - SWEDEN

STRATEGIC DIRECTION

KEY FACTS

Summary 2 Fiedler & Lundgren AB: Key Facts

Summary 3 Fiedler & Lundgren AB: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 4 Fiedler & Lundgren AB: Competitive Position 2008

HOUSE OF PRINCE AB - TOBACCO - SWEDEN

STRATEGIC DIRECTION

KEY FACTS

Summary 5 House of Prince AB: Key Facts

Summary 6 House of Prince AB: Operational Indicators

COMPANY BACKGROUND

PRODUCTION BY FACTORY

COMPETITIVE POSITIONING

Summary 7 House of Prince AB: Competitive Position 2008

JTI SWEDEN AB - TOBACCO - SWEDEN

STRATEGIC DIRECTION

KEY FACTS

Summary 8 JTI Sweden AB: Key Facts

COMPANY BACKGROUND

PRODUCTION BY FACTORY

COMPETITIVE POSITIONING

Summary 9 JTI Sweden AB: Competitive Position 2008

PHILIP MORRIS AB - TOBACCO - SWEDEN

STRATEGIC DIRECTION

KEY FACTS

Summary 10 Philip Morris AB: Key Facts

COMPANY BACKGROUND

PRODUCTION BY FACTORY

COMPETITIVE POSITIONING

Summary 11 Philip Morris AB: Competitive Position 2008

REBEL TOBACCO AB - TOBACCO - SWEDEN

STRATEGIC DIRECTION

KEY FACTS

Summary 12 Rebel Tobacco AB: Key Facts

Summary 13 Rebel Tobacco AB: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 14 Rebel Tobacco AB: Competitive Position 2008

SWEDISH MATCH AB - TOBACCO - SWEDEN

STRATEGIC DIRECTION

KEY FACTS

Summary 15 Swedish Match AB: Key Facts

Summary 16 Swedish Match AB: Operational Indicators- World wide operations

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

Summary 17 Swedish Match AB: Competitive Position 2008

CIGARETTES IN SWEDEN

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

SECTOR BACKGROUND

Cigarettes: Illicit trade

Cigarettes: Price Bands

Summary 18 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 16 Sales of Cigarettes by Tar Level: Volume 2003-2008

Table 17 Sales of Cigarettes by Tar Level: Value 2003-2008

Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2003-2008

Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2003-2008

Table 20 Sales of Cigarettes by Price Band: % Volume Breakdown 2003-2008

Table 21 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2003-2008

Table 22 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2003-2008

Table 23 Sales of Cigarettes by Filter Vs Non-filter 2003-2008

Table 24 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2003-2008

Table 25 Sales of Cigarettes by Length 2003-2008

Table 26 Sales of Cigarettes by Regular/Slim 2006-2008

Table 27 Sales of Cigarettes by Pack Size 2003-2008

Table 28 Sales of Cigarettes by Pack Type 2003-2008

Table 29 Cigarettes: Production, Imports and Exports: Total Volume 2003-2008

Table 30 Cigarettes Company Shares 2004-2008

Table 31 Cigarettes Brand Shares 2005-2008

Table 32 Sales of Cigarettes by Distribution Format: % Analysis 2003-2008

Table 33 Forecast Sales of Cigarettes by Tar Level: Volume 2008-2013

Table 34 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013

Table 35 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013

Table 36 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013

Table 37 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013

Table 38 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013

Table 39 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013

Table 40 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013

Table 41 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013

Table 42 Forecast Sales of Cigarettes by Length 2008-2013

Table 43 Forecast Sales of Cigarettes by Regular/Slim 2008-2013

Table 44 Forecast Sales of Cigarettes by Pack Size 2008-2013

Table 45 Forecast Sales of Cigarettes by Pack Type 2008-2013

CIGARS IN SWEDEN

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

SECTOR DATA

Table 46 Sales of Cigars by Subsector: Volume 2003-2008

Table 47 Sales of Cigars by Subsector: Value 2003-2008

Table 48 Sales of Cigars by Subsector: % Volume Growth 2003-2008

Table 49 Sales of Cigars by Subsector: % Value Growth 2003-2008

Table 50 Company Shares of Cigars Excluding Cigarillos 2004-2008

Table 51 Brand Shares of Cigars Excluding Cigarillos 2005-2008

Table 52 Company Shares of Cigarillos 2004-2008

Table 53 Brand Shares of Cigarillos 2005-2008

Table 54 Sales of Cigars by Distribution Format: % Analysis 2003-2008

Table 55 Forecast Sales of Cigars by Subsector: Volume 2008-2013

Table 56 Forecast Sales of Cigars by Subsector: Value 2008-2013

Table 57 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013

Table 58 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013

SMOKING TOBACCO IN SWEDEN

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

SECTOR DATA

Table 59 Sales of Smoking Tobacco by Subsector: Volume 2003-2008

Table 60 Sales of Smoking Tobacco by Subsector: Value 2003-2008

Table 61 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008

Table 62 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008

Table 63 Company Shares of RYO Tobacco 2004-2008

Table 64 Brand Shares of RYO Tobacco 2005-2008

Table 65 Company Shares of Pipe Tobacco 2004-2008

Table 66 Brand Shares of Pipe Tobacco 2005-2008

Table 67 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008

Table 68 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013

Table 69 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013

Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013

Table 71 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013

SMOKELESS TOBACCO IN SWEDEN

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

Summary 19 Snus - New Product Launches 2008

PROSPECTS

SECTOR DATA

Table 72 Sales of Smokeless Tobacco by Subsector: Volume 2003-2008

Table 73 Sales of Smokeless Tobacco by Subsector: Value 2003-2008

Table 74 Sales of Smokeless Tobacco by Subsector: % Volume Growth 2003-2008

Table 75 Sales of Smokeless Tobacco by Subsector: % Value Growth 2003-2008

Table 76 Sales of Smokless Tobacco by Distribution Format: % Analysis 2003-2008

Table 77 Forecast Sales of Smokeless Tobacco by Subsector: Volume 2008-2013

Table 78 Forecast Sales of Smokeless Tobacco by Subsector: Value 2008-2013

Table 79 Forecast Sales of Smokeless Tobacco by Subsector: % Volume Growth 2008-2013

Table 80 Forecast Sales of Smokeless Tobacco by Subsector: % Value Growth 2008-2013

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