Tobacco in Thailand
Euromonitor International's Tobacco in Thailand 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: 85 | Publication date: Jan 2010
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Executive summary
Number of Thai female smokers on the rise
The number of female Thai smokers has risen dramatically in recent years and the top three cigarette companies in Thailand have released several versions of lighter, flavoured cigarettes particularly to target this consumer segment. Although it is unlikely that the number of female smokers will exceed male smokers, the health risk to women and their children is much higher and is causing serious concern. The Action on Smoking and Health Foundation (ASH), the most active non-profit organisation against cigarette smoking in Thailand is actively looking at initiatives that would help curtail the rise in female smoking prevalence in the coming years.
Economic climate, smoking ban and political instability have an adverse effect on tobacco consumption
All tobacco products saw a weaker 2008 performance compared to a year before due to the combination of social, political and economic factors. Cigars and smoking tobacco in Thailand, with 50% of sales being generated by visitors, will see a sharp slowdown in growth as a result of the global economic slowdown and the closure of major airports towards the end of 2008, which greatly affected the transportation of goods as well as tourist arrivals. The total ban on smoking in public places, including bars and restaurants, will further reduce consumption, as apparent by the negative growth rates shown by cigarettes in 2008.
Philip Morris holds the highest share of the foreign tobacco companies
L&M has become the biggest international brand in Thailand, dominating the imported mid-priced segment. The other Philip Morris brand in Thailand, Marlboro, is produced in the Philippines and enjoys preferential import tariffs under the Asian Free Trade Area (AFTA) agreement. With a relatively narrow product portfolio compared to the leading cigarette company, Thailand Tobacco Monopoly and the third-ranked player British American Tobacco, Philip Morris (Thailand) made gains over the review period to reach a 28% share in 2008. The ASEAN Free Trade Area (AFTA) is a trade bloc agreement between the Association of Southeast Asian Nations (ASEAN) to support local manufacturing in all ASEAN countries.
British American Tobacco likely to gain share from wider distribution through modern retailers
The increased number of outlets, especially convenience stores such as 7-Eleven and Family Mart, has benefited the tobacco industry, especially British American Tobacco (BAT). BAT’s major brands are sold in convenience stores and the company depends on the expansion of the branches to reach its customers who have switched to other foreign brands such as Marlboro and L&M. It has been noted that BAT’s clientele have a high degree of loyalty towards its brands. Benson & Hedges, Dunhill and State Royal 555 have been long-time favourites of the older generation in general, while Pall Mall, with its new product development in 2008, is set to become the company’s flagship brand.
Profits for Thailand Tobacco Monopoly expected to fall
Profits for the state-owned Thailand Tobacco Monopoly (TTM) are expected to fall. TTM is facing increasing difficulties in terms of both competition from foreign producers and a decline in cigarette consumption. Declining volume sales and higher operating costs will further affect profits over the next few years. TTM’s profitability can only be maintained by reducing production costs and making distribution more efficient. TTM produces the leading Krongthip brand.
Table of contents
TOBACCO IN THAILAND : MARKET INSIGHT
EXECUTIVE SUMMARY
Number of Thai female smokers on the rise
Economic climate, smoking ban and political instability have an adverse effect on tobacco consumption
Philip Morris holds the highest share of the foreign tobacco companies
British American Tobacco likely to gain share from wider distribution through modern retailers
Profits for Thailand Tobacco Monopoly expected to fall
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 - 2003-2008
The Role and Effect of Cannabis/Marijuana
Legislative overview/FCTC ratification
Outlook
Legislation
Minimum legal smoking age
Tar levels
Health warnings
Outlook
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Outlook
Litigation
Taxation and Duty Levies
Outlook
Table 4 Taxation and Duty Levies: 2003-2008
PRODUCTION/IMPORTS/EXPORTS
Table 5 Trade Statistics – Cigarettes 2003-2008
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 - THAILAND
BRITISH AMERICAN TOBACCO PLC - TOBACCO - THAILAND
STRATEGIC DIRECTION
KEY FACTS
Summary 2 British American Tobacco Plc: Key Facts
Summary 3 British American Tobacco Plc: Operational Indicators 2006-2008
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 4 British American Tobacco Plc: Competitive Position 2008
PHILIP MORRIS (THAILAND) LTD - TOBACCO - THAILAND
STRATEGIC DIRECTION
Summary 5 Philip Morris (Thailand) Ltd: Key Facts
Summary 6 Philip Morris (Thailand) Ltd: Operational Indicators 2006-2008
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 7 Philip Morris (Thailand) Ltd: Competitive Position 2008
THAILAND TOBACCO MONOPOLY - TOBACCO - THAILAND
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Thailand Tobacco Monopoly: Key Facts
Summary 9 Thailand Tobacco Monopoly: Operational Indicators
COMPANY BACKGROUND
PRODUCTION
Summary 10 Thailand Tobacco Monopoly: Production Statistics 2008
COMPETITIVE POSITIONING
Summary 11 Thailand Tobacco Monopoly: Competitive Position 2008
THE PACIFIC CIGARS (THAILAND) CO LTD - TOBACCO - THAILAND
STRATEGIC DIRECTION
KEY FACTS
Summary 12 The Pacific Cigars (Thailand) Co Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION
COMPETITIVE POSITIONING
Summary 13 The Pacific Cigars (Thailand) Co Ltd: Competitive Position 2008
CIGARETTES IN THAILAND
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 14 Cigarettes - New Product Launches 2008
PROSPECTS
SECTOR BACKGROUND
Cigarettes: Illicit trade
Cigarettes: Price Bands
Summary 15 Cigarette Price Band Definitions
Cigarettes: Menthol/standard
Cigarettes: Filter/non-filter
Cigarettes: Carbon/standard filter
Cigarettes: Filter length
Cigarettes: Slims/super slims 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: Volume 2008-2013
Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2008-2013
Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
Table 36 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
Table 37 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2008-2013
Table 38 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
Table 39 Forecast Sales of Cigarettes by Filter Vs Non-filter 2008-2013
Table 40 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2008-2013
Table 41 Forecast Sales of Cigarettes by Length 2008-2013
Table 42 Forecast Sales of Cigarettes by Regular/Slim 2008-2013
Table 43 Forecast Sales of Cigarettes by Pack Size 2008-2013
Table 44 Forecast Sales of Cigarettes by Pack Type 2008-2013
CIGARS IN THAILAND
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 45 Sales of Cigars by Subsector: Volume 2003-2008
Table 46 Sales of Cigars by Subsector: Value 2003-2008
Table 47 Sales of Cigars by Subsector: % Volume Growth 2003-2008
Table 48 Sales of Cigars by Subsector: % Value Growth 2003-2008
Table 49 Company Shares of Cigars Excluding Cigarillos 2004-2008
Table 50 Brand Shares of Cigars Excluding Cigarillos 2005-2008
Table 51 Company Shares of Cigarillos 2004-2008
Table 52 Brand Shares of Cigarillos 2005-2008
Table 53 Sales of Cigars by Distribution Format: % Analysis 2003-2008
Table 54 Forecast Sales of Cigars by Subsector: Volume 2008-2013
Table 55 Forecast Sales of Cigars by Subsector: Value 2008-2013
Table 56 Forecast Sales of Cigars by Subsector: % Volume Growth 2008-2013
Table 57 Forecast Sales of Cigars by Subsector: % Value Growth 2008-2013
SMOKING TOBACCO IN THAILAND
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 58 Sales of Smoking Tobacco by Subsector: Volume 2003-2008
Table 59 Sales of Smoking Tobacco by Subsector: Value 2003-2008
Table 60 Sales of Smoking Tobacco by Subsector: % Volume Growth 2003-2008
Table 61 Sales of Smoking Tobacco by Subsector: % Value Growth 2003-2008
Table 62 Company Shares of RYO Tobacco 2004-2008
Table 63 Brand Shares of RYO Tobacco 2005-2008
Table 64 Company Shares of Pipe Tobacco 2004-2008
Table 65 Brand Shares of Pipe Tobacco 2005-2008
Table 66 Sales of Smoking Tobacco by Distribution Format: % Analysis 2003-2008
Table 67 Forecast Sales of Smoking Tobacco by Subsector: Volume 2008-2013
Table 68 Forecast Sales of Smoking Tobacco by Subsector: Value 2008-2013
Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2008-2013
Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2008-2013