Tobacco in 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
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
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