Tobacco in the Philippines
Euromonitor International's Tobacco in the Philippines 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.
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Tables: 71 | Publication date: Jan 2008
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
Stable volume growth attributed mainly to increasing number of smokers
Tobacco in the Philippines experienced modest volume growth in 2006. Smokers have come to accept and accommodate the higher costs of smoking that resulted from the increased excise tax rates introduced in 2004. Growth can be attributed mainly to the increasing number of smokers and is a worrying sign for the Philippine Government as it attempts to tackle the growing smoking-related health issues in the country.
Economy cigarettes gain popularity
Economy cigarettes became more popular in 2006. Smokers put off by the price of premium variants resulting from the tax hikes have started to smoke economy cigarettes instead. Smokers in the Philippines are more price sensitive than brand loyal and, since the last round of price hikes in 2004, have taken to smoking cheaper cigarettes. Tax hikes are seen to be inevitable as the government aims to cut down on smoking, and economy cigarettes are expected to maintain their popularity during the forecast period.
Rising illicit trade causes concern
Contraband continued its muted presence in 2006, as prices of cigarettes in the Philippines remained low and smugglers saw little profit incentive in bringing untaxed cigarettes into the country. However, counterfeit cigarettes are becoming more widely available, as counterfeiters target well-known and popular brands such as Marlboro and Winston. Such brands already have strong presence and customer following. The Philippines also emerged during the review period as a major exporter of illicitly traded cigarettes within Asia-Pacific and is suspected to export to countries as far away as Australia.
Low tar cigarettes draw health-conscious smokers
Low tar cigarettes delivered strong volume growth in 2006 as smokers became more concerned about the health implications of smoking, they are turning to low tar cigarettes for their perceived lesser health risks compared with higher tar cigarettes. It is expected that more smokers will turn to low tar cigarettes as the Philippines becomes more concerned about health and wellness.
Fortune Tobacco Corp retains pole position
Fortune Tobacco Corp remained the leading player in 2006, with more than one third of cigarettes volume sales. Acting as the official licensee for Japan Tobacco Inc (JTI), it distributes and sells some of the most popular brands in the Philippines, including Winston, Camel and More. However, the company is conceding ground to competitors, as it is under-represented in the two fastest growing categories –economy cigarettes and low tar cigarettes.
Table of contents
TOBACCO IN THE PHILIPPINES : MARKET INSIGHT
EXECUTIVE SUMMARY
Stable volume growth attributed mainly to increasing number of smokers
Economy cigarettes gain popularity
Rising illicit trade causes concern
Low tar cigarettes draw health-conscious smokers
Fortune Tobacco Corp retains pole position
OPERATING ENVIRONMENT
Smoking Population
Table 1 Smoking Prevalence in Population 2001-2006
Table 2 Number of Smokers by Gender 2001-2006
Death by Cause
Legislation
Tar
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
Litigation
Taxation and Duty Levies
Table 3 Cigarettes Taxation and Duty Levies 2001-2011
Production/Imports/Exports
Table 4 Total Export/Import of Cigarettes
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 5 Deaths from Heart Disease 2001-2006
Table 6 Deaths from Lung Cancer 2001-2006
Table 7 Illicit Trade Estimate 2001-2006
MARKET DATA
Table 8 Sales of Tobacco by Sector: Volume 2001-2006
Table 9 Sales of Tobacco by Sector: Value 2001-2006
Table 10 Sales of Tobacco by Sector: % Volume Growth 2001-2006
Table 11 Sales of Tobacco by Sector: % Value Growth 2001-2006
Table 12 Sales of Cigarettes by Distribution Format: % Analysis 2001/2006
Table 13 Forecast Sales of Tobacco by Sector: Volume 2006-2011
Table 14 Forecast Sales of Tobacco by Sector: Value 2006-2011
Table 15 Forecast Sales of Tobacco by Sector: % Volume Growth 2006-2011
Table 16 Forecast Sales of Tobacco by Sector: % Value Growth 2006-2011
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - PHILIPPINES
FORTUNE TOBACCO CORP - TOBACCO - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Fortune Tobacco Corp: Key Facts
Summary 3 Fortune Tobacco Corp: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 4 Fortune Tobacco Corp: Competitive Position 2006
LA FLOR DE LA ISABELA INC - TOBACCO - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 5 La Flor de la Isabela Inc: Key Facts
Summary 6 La Flor de la Isabela Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION FACTORY
COMPETITIVE POSITIONING
Summary 7 La Flor de la Isabela Inc: Competitive Position 2006
MIGHTY CORP - TOBACCO - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Mighty Corp: Key Facts
Summary 9 Mighty Corp: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 10 Mighty Corp: Production Statistics by Factory
COMPETITIVE POSITIONING
Summary 11 Mighty Corp: Competitive Position 2006
PHILIP MORRIS (PHILS) MANUFACTURING INC - TOBACCO - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 12 Philip Morris (Phils) Manufacturing Inc: Key Facts
Summary 13 Philip Morris (Phils) Manufacturing Inc: Operational Indicators
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 14 Philip Morris (Phils) Manufacturing Inc: Production Statistics by Factory
COMPETITIVE POSITIONING
Summary 15 Philip Morris (Phils) Manufacturing Inc: Competitive Position 2006
TABAQUERIA DE FILIPINAS INC - TOBACCO - PHILIPPINES
STRATEGIC DIRECTION
KEY FACTS
Summary 16 Tabaqueria de Filipinas Inc: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 17 Tabaqueria de Filipinas Inc: Competitive Position 2006
CIGARETTES IN THE PHILIPPINES
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Cigarettes: Filter Splits
Cigarettes: Pack Splits
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 17 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 18 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 19 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 20 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 21 Sales of Cigarettes by Price Band: % Volume Breakdown 2001-2006
Table 22 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2001-2006
Table 23 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2001-2006
Table 24 Sales of Cigarettes by Filter Vs Non-filter 2001-2006
Table 25 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2001-2006
Table 26 Sales of Cigarettes by Length 2001-2006
Table 27 Sales of Cigarettes by Pack Size 2001-2006
Table 28 Sales of Cigarettes by Pack Type 2001-2006
Table 29 Cigarettes Company Shares 2002-2006
Table 30 Cigarettes Brand Shares 2003-2006
Table 31 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 32 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 33 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 34 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 35 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 36 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 37 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 38 Forecast Sales of Cigarettes by Filter Vs Non-filter 2006-2011
Table 39 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2006-2011
Table 40 Forecast Sales of Cigarettes by Length 2006-2011
Table 41 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 42 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN THE PHILIPPINES
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 43 Sales of Cigars by Subsector: Volume 2001-2006
Table 44 Sales of Cigars by Subsector: Value 2001-2006
Table 45 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 46 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 47 Company Shares of Cigars Exluding Cigarillos 2002-2006
Table 48 Brand Shares of Cigars Exluding Cigarillos 2003-2006
Table 49 Company Shares of Cigarillos 2002-2006
Table 50 Brand Shares of Cigarillos 2003-2006
Table 51 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 52 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 53 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 54 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO IN THE PHILIPPINES
HEADLINES
TRENDS
Competitive landscape
Prospects