Tobacco in the United Kingdom
Euromonitor International's Tobacco in the United Kingdom 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: 80 | Publication date: Nov 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
Number of Smokers Falls ...
Tobacco companies in the UK are operating in an environment in which the incidence of smoking among adults continues to fall. Although there has been some resurgence, especially in female smokers of smoking tobacco, the UK population as a whole has begun to get the message regarding the health problems associated with smoking. With more help than ever available through the NHS in terms of support and counselling, notoriously hard-hitting anti-smoking advertisements, yearly rounds of tax increases and continuing government legislation, smoking is a habit that is being continually marginalised.
... while Taxes Rise
Over the review period the operating environment continued to be impacted by annual rounds of tax increases as part of government attempts to dissuade smokers from their habit by increasing prices to prohibitive levels. Tax revenue from tobacco products crossed the £10 billion mark in 2008. Tax rises are set to continue over the forecast period as reducing smoking has been identified by the government as the quickest and cheapest way to ensure improvements in public health without necessitating major investment in the NHS. Although high taxes have been blamed by manufacturers and the pro-tobacco lobby for encouraging the flow of contraband into the UK, it would appear that tougher border controls have begun to cut the supply and force consumers back into the legal market.
Economy Ranges the Most Popular
Economy ranges benefited most from the upward movement in taxes, as many consumers continued to search for the cheapest products. Brand loyalty is no longer believed to be the key driver of sales; price has become the prime concern among cash-strapped smokers, especially as smoking prevalence is notably higher in lower-income groups. Manufacturers have begun to offer ‘premium’ products at economy prices to cater for this trend. With each tax hike it would seem the government is pushing consumers towards economy ranges, RYO or black market tobacco, a trend which is visible in the number of budget brand developments that took place before the full advertising ban in 2004.
Consolidated Industry
The UK tobacco industry is mainly characterised by cigarettes, which accounted for the vast majority of value sales in 2008. Imperial Tobacco Group Plc and Gallaher Group Plc were the main players in cigarettes, together accounting for 83% of volume sales that year, and in the midst of a 'dark market' where advertising is all but outlawed, the ability of manufacturers to promote their brands has been limited to the extent that company shares are remaining broadly stable and even growing.
Future Looks Turbulent
With public health high up the political agenda, the UK government introduced legislation that saw a full public smoking ban introduced in England during summer 2007. The immediate results of this have been mainly a shift in the behaviour of existing smokers. Some people are tending to buy shorter, fatter cigarettes to get the same effect as they are having to smoke outside (an effect only worsened by the wet summer and cold winter in 2008). Sales may have suffered too due to the ban (as volume falls again this year) – people simply will have less time to smoke on a night out and so buy fewer packs. A rise in the number of people attempting to quit is also evident: according to the Department of Health, around 165,000 people quit between between April and September 2007, a 28% jump on the same months in the previous year. However, according to the ONS, the percentage of people who said that they would like to give up smoking was 73% in 2007, which is virtually the same amount as in previous years of the review period. There was also evidence that a number of smokers were beginning to feel alienated and attacked by the government’s continued action, creating a slight backlash.
Table of contents
TOBACCO IN THE UNITED KINGDOM : MARKET INSIGHT
EXECUTIVE SUMMARY
Number of Smokers Falls ...
... while Taxes Rise
Economy Ranges the Most Popular
Consolidated Industry
Future Looks Turbulent
OPERATING ENVIRONMENT
Smoking Prevalence
Table 1 Smoking Prevalence in Population 2003-2008
Table 2 Number of Smokers by Gender 2003-2008
Death by Cause
The Role and Effect of Cannabis/Marijuana
LEGISLATION
Legislative Overview/FCTC Ratification
Tar
Health Warnings
Duty Paid Packet Marks
Advertising & Sponsorship
Smoking in Public Places
Litigation
TAXATION AND DUTY LEVIES
Table 3 Taxation and Duty Levies: Cigarettes 2003-2008
Table 4 Average Cigarette Pack Price Breakdown: Brand Examples
PRODUCTION/IMPORTS/EXPORTS
Table 5 Trade Statistics – Cigarettes 2004-2008
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 - UNITED KINGDOM
GALLAHER GROUP PLC - TOBACCO - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Gallaher Group Plc: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 3 Gallaher Group Plc: Competitive Position 2008
IMPERIAL TOBACCO GROUP PLC - TOBACCO - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Imperial Tobacco Group Plc: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 5 Imperial Tobacco Group Plc: Competitive Position 2008
ROTHMANS (UK) LTD - TOBACCO - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 6 Rothmans (UK) Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 7 Rothmans (UK) Ltd: Competitive Position 2008
CIGARETTES IN THE UNITED KINGDOM
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 8 Cigarettes - New Product Launches
PROSPECTS
SECTOR BACKGROUND
Illicit Trade (Cigarettes)
Cigarettes: Price Bands
Summary 9 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 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 THE UNITED KINGDOM
HEADLINES
TRENDS
DISTRIBUTION
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
Summary 10 Cigars - New Product Launches
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 THE UNITED KINGDOM
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