Tobacco in Taiwan
Euromonitor International's Tobacco in Taiwan 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: 70 | Publication date: Nov 2009
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Executive summary
Economic downturn and new regulations lead to declining tobacco sales
The retail sales performance of tobacco showed a slight decline in 2008, as the economic downturn forced consumers to prioritise their spending to cover daily necessities rather than tobacco products. Furthermore, the revised Tobacco Hazards Prevention Act implemented in 2009 banned indoor smoking in public facilities and is expected to negatively impact sales.
More restrictions and falling demand limit sales of high tar cigarettes
High tar cigarettes retain a very limited market presence in Taiwan, as most of the new brands launched were mid tar or low tar cigarettes. This was a result of smokers becoming more health conscious in their choice of tobacco products as well as the new limits on the allowable levels of tar in cigarettes that took effect in April 2009. High tar cigarettes turned in the worst retail sales performance in 2008 as its volume sales continued to plummet. On the other hand, ultra low tar cigarettes enjoyed the strongest retail volume growth in 2008, as smokers opted for products that they perceived to be less harmful to their health.
Multinationals gain volume share following deregulation
Because of the profitability of the tobacco industry, the Taiwanese government set up a monopoly business to attempt to keep profits within the country rather than allowing revenue to be siphoned off by foreign companies. However, following the deregulation in the review period, multinational tobacco companies set up branches and trading companies to import more brands from other countries. This resulted in growing volume shares for the multinationals at the end of the review period and the privatisation of the Taiwan Tobacco & Liquor Corp in a bid to compete with the multinationals.
High density of convenience stores makes it a leading channel
Cigarettes had a wide distribution through most of the available channels, from chained convenience stores to supermarkets/hypermarkets. Convenience stores and street vendors generally sold cigarettes by the pack, while larger 10-pack cartons were mainly sold through supermarkets/hypermarkets. Due to the rising number of convenience stores in Taiwan, the share of cigarette volume sales held by this channel increased during the review period. On the other hand, the distribution of cigars was mainly through non-retail channels and tobacco specialists, which saw a rise in volume share in 2008 due to its broad product range
Stringent government regulations will further diminish tobacco sales
Stricter regulations are expected over the forecast period as the government focuses on making Taiwan a smoke-free city. Cigarettes sales are expected to decline over the forecast period as more stringent government regulations on smoking induce more smokers to quit or reduce their smoking. Premium brands are expected to perform better than economy brands over the forecast period as the remaining smokers demand better quality cigarettes.
Table of contents
TOBACCO IN TAIWAN : MARKET INSIGHT
EXECUTIVE SUMMARY
Economic downturn and new regulations lead to declining tobacco sales
More restrictions and falling demand limit sales of high tar cigarettes
Multinationals gain volume share following deregulation
High density of convenience stores makes it a leading channel
Stringent government regulations will further diminish tobacco sales
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 Death by Cause 2004-2007
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 - TAIWAN
IMPERIAL TOBACCO GROUP PLC - TOBACCO - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Imperial Tobacco Group Plc: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 3 Imperial Tobacco Group Plc: Competitive Position 2008
JT TOBACCO INTERNATIONAL TAIWAN CORP - TOBACCO - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 4 JT Tobacco International Taiwan Corp: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 5 JT Tobacco International Taiwan Corp: Competitive Position 2008
MERCURIES & ASSOCIATES LTD - TOBACCO - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Mercuries & Associates Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Mercuries & Associates Ltd: Competitive Position 2008
TAIWAN TOBACCO & LIQUOR CORP - TOBACCO - TAIWAN
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Taiwan Tobacco & Liquor Corp: Key Facts
Summary 9 Taiwan Tobacco & Liquor Corp: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 10 Taiwan Tobacco & Liquor Corp: Competitive Position 2008
CIGARETTES IN TAIWAN
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 11 Cigarettes - New Product Launches
PROSPECTS
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 12 Cigarette Price Band Definitions
Cigarettes: Menthol/standard
Cigarettes: Filter/non-filter
Cigarettes: Carbon/standard filter
Cigarettes: Filter length
Cigarettes: Slim/superslim 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 TAIWAN
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 TAIWAN
TRENDS
SMOKELESS TOBACCO IN TAIWAN
TRENDS