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: 66  |  Publication date: Jan 2009
Cost: 
GBP1190.00

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

Health and Welfare Tax has a minimal impact on consumption

Increases in the Health and Welfare Tax had a minimal impact on cutting down smoking, as cigarette prices in Taiwan remained low. Sales of cigarettes in Taiwan are at a very mature stage; demand is steady and annual volume increases are insignificant. Value growth closely reflected the application of the Health and Welfare Tax increase in 2006. In 2007, declining value growth was as a result of the situation in the Taiwanese economy, with many consumers shifting to economy brands.

Health concerns drive a shift towards lower tar cigarettes

Leading brand undergoes re-branding

The leading Mild Seven brand underwent re-branding in 2007. Mild Seven Original was changed to Mild Seven Original Blue, Mild Seven Lights to Mild Seven Sky Blue and Mild Seven Super Lights became Mild Seven Wind Blue. The change was in response to declining sales and a movement towards economy brands, and allowed the brand to differentiate itself from its competitors.

Dynamic success of the Gentle brand with loyal and new smokers

Gentle, once a sub-brand under Long Life, has been successfully positioned as Taiwan Tobacco & Liquor Corp’s main brand. The decision to replace the Long Life brand was due to its outdated image. Gentle offers smokers a newer look and a more sophisticated image, with a wide range of tar level options, whilst remaining an economy brand. Since its introduction as a separate brand in 2006, Gentle has shown dramatic growth. The brand did not only successfully see the transfer of Long Life smokers, but also captured some consumers of Mild Seven, and is increasingly appealing to new smokers.

Taiwan Tobacco & Liquor Corp cements its leadership

Taiwan Tobacco & Liquor Corp was the leading player in cigarettes in Taiwan in 2007, and owns Gentle and Long Life, the second and third most important cigarette brands. The company’s major rival, JT Tobacco International Taiwan Corp, owner of Mild Seven, showed the first signs of decline in 2007, largely due to the dramatic success of Taiwan Tobacco & Liquor Corp’s Gentle brand.

Government measures will put a lid on volume consumption

Proposed increases in the Health and Welfare Tax would see the tax on an average pack of cigarettes increase from NT$10 to NT$45 in the forecast period, from 2007-2012. As a result, volume growth is expected to stagnate, and demand is likely to remain steady, or contract slightly.

Table of contents

TOBACCO IN TAIWAN : MARKET INSIGHT

EXECUTIVE SUMMARY

Health and Welfare Tax has a minimal impact on consumption

Health concerns drive a shift towards lower tar cigarettes

Leading brand undergoes re-branding

Dynamic success of the Gentle brand with loyal and new smokers

Taiwan Tobacco & Liquor Corp cements its leadership

Government measures will put a lid on volume consumption

OPERATING ENVIRONMENT

Smoking Prevalence

Table 1 Smoking Prevalence in Population 2002-2007

Table 2 Number of Smokers by Gender 2002-2007

Death by Cause

Legislation

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

The Role and Effect of Cannabis/Marijuana

MARKET INDICATORS

Table 6 Illicit Trade Estimate 2002-2007

MARKET DATA

Table 7 Sales of Tobacco by Sector: Volume 2002-2007

Table 8 Sales of Tobacco by Sector: Value 2002-2007

Table 9 Sales of Tobacco by Sector: % Volume Growth 2002-2007

Table 10 Sales of Tobacco by Sector: % Value Growth 2002-2007

Table 11 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007

Table 12 Forecast Sales of Tobacco by Sector: Volume 2007-2012

Table 13 Forecast Sales of Tobacco by Sector: Value 2007-2012

Table 14 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012

Table 15 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012

DEFINITIONS

Summary 1 Research Sources

LOCAL COMPANY PROFILES - TAIWAN

BRITISH AMERICAN TOBACCO SERVICES LTD TAIWAN - TOBACCO - TAIWAN

STRATEGIC DIRECTION

KEY FACTS

Summary 2 British American Tobacco Services Ltd Taiwan: Key Facts

Summary 3 British American Tobacco Services Ltd Taiwan: Operational Indicators

COMPANY BACKGROUND

PRODUCTION BY FACTORY

COMPETITIVE POSITIONING

Summary 4 British American Tobacco Services Ltd Taiwan: Competitive Position 2007

JT TOBACCO INTERNATIONAL TAIWAN CORP - TOBACCO - TAIWAN

STRATEGIC DIRECTION

KEY FACTS

Summary 5 JT Tobacco International Taiwan Corp: Key Facts

Summary 6 JT Tobacco International Taiwan Corp: Operational Indicators

COMPANY BACKGROUND

PRODUCTION BY FACTORY

COMPETITIVE POSITIONING

Summary 7 JT Tobacco International Taiwan Corp: Competitive Position 2007

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 BY FACTORY

COMPETITIVE POSITIONING

Summary 10 Taiwan Tobacco & Liquor Corp: Competitive Position 2007

CIGARETTES IN TAIWAN

HEADLINES

TRENDS

Illicit trade (Cigarettes)

Cigarettes: Price Bands

Summary 11 Cigarette Price Band Definitions

Cigarettes: Filter Splits

Cigarettes: Pack Splits

Distribution

COMPETITIVE LANDSCAPE

New Product Developments

PROSPECTS

SECTOR DATA

Table 16 Sales of Cigarettes by Tar Level: Volume 2002-2007

Table 17 Sales of Cigarettes by Tar Level: Value 2002-2007

Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007

Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007

Table 20 Sales of Cigarettes by Price Band: % Volume Breakdown 2002-2007

Table 21 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2002-2007

Table 22 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2002-2007

Table 23 Sales of Cigarettes by Filter Vs Non-filter 2002-2007

Table 24 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2002-2007

Table 25 Sales of Cigarettes by Length 2002-2007

Table 26 Sales of Cigarettes by Regular/Slim 2006-2007

Table 27 Sales of Cigarettes by Pack Size 2002-2007

Table 28 Sales of Cigarettes by Pack Type 2002-2007

Table 29 Cigarettes Company Shares 2003-2007

Table 30 Cigarettes Brand Shares 2004-2007

Table 31 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012

Table 32 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012

Table 33 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012

Table 34 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012

Table 35 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012

Table 36 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012

Table 37 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012

Table 38 Forecast Sales of Cigarettes by Filter Vs Non-filter 2007-2012

Table 39 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2007-2012

Table 40 Forecast Sales of Cigarettes by Length 2007-2012

Table 41 Forecast Sales of Cigarettes by Regular/Slim 2007-2012

Table 42 Forecast Sales of Cigarettes by Pack Size 2007-2012

Table 43 Forecast Sales of Cigarettes by Pack Type 2007-2012

CIGARS IN TAIWAN

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS

SECTOR DATA

Table 44 Sales of Cigars by Subsector: Volume 2002-2007

Table 45 Sales of Cigars by Subsector: Value 2002-2007

Table 46 Sales of Cigars by Subsector: % Volume Growth 2002-2007

Table 47 Sales of Cigars by Subsector: % Value Growth 2002-2007

Table 48 Company Shares of Cigars Exluding Cigarillos 2003-2007

Table 49 Brand Shares of Cigars Exluding Cigarillos 2004-2007

Table 50 Company Shares of Cigarillos 2003-2007

Table 51 Brand Shares of Cigarillos 2004-2007

Table 52 Forecast Sales of Cigars by Subsector: Volume 2007-2012

Table 53 Forecast Sales of Cigars by Subsector: Value 2007-2012

Table 54 Forecast Sales of Cigars by Subsector: % Volume Growth 2007-2012

Table 55 Forecast Sales of Cigars by Subsector: % Value Growth 2007-2012

SMOKING TOBACCO IN TAIWAN

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

PROSPECTS