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: 81 | 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
Number of Smokers Falls ...
Tobacco companies in the UK are operating in an environment in which the incidence of smoking amongst adults continues to fall. Although there has been some resurgence, especially amongst teenage girls, 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 antismoking advertisements and yearly rounds of tax increases, smoking is a habit that is being continually marginalised.
... While Taxes Rise
Over the review period, the operating environment continued to be complicated by annual rounds of tax increases as part of government attempts to dissuade smokers from their habit by increasing prices to prohibitive levels. This process is set to continue over the forecast period, since 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 Are the Most Popular
Economy ranges benefited most from the upward movement in taxes, as many consumers continued to search for the cheapest products. Economy brands such as Lambert & Butler have already dented the volume shares of premium brands such as Benson & Hedges, forcing Gallaher Group Plc to release its own economy variant in 2003. With each tax hike it would seem the government is pushing consumers towards the 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 2006. Imperial Tobacco Group Plc and Gallaher Group Plc were the main players in cigarettes, together accounting for 81% 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.
Future Looks Turbulent
With public health high up the political agenda, the UK government has introduced legislation that will see a full public smoking ban introduced in England during summer 2007. This ban will add to that already imposed in Scotland and will undoubtedly cause a huge amount of disruption to a market already suffering under the malaise of legislation which has all but removed opportunity for manufacturers to communicate with their consumers. A ban on smoking in public places will likely see a drop in the number of cigarettes consumed as the health message is rammed home with increasingly tighter regulation which could also see cigarette sales banned to people under the age of 18 years old and also a mooted removal of cigarettes from view in retail outlets.
Table of contents
TOBACCO IN THE UNITED KINGDOM : MARKET INSIGHT
EXECUTIVE SUMMARY
Number of Smokers Falls ...
... While Taxes Rise
Economy Ranges Are the Most Popular
Consolidated Industry
Future Looks Turbulent
OPERATING ENVIRONMENT
Smoking Population
Death by Cause
Legislation
Tar
Health Warnings
Duty Paid Packet Marks
Advertising & Sponsorship
Smoking in Public Places
Litigation
Taxation and Duty Levies
Table 1 Taxation and Duty Levies 2001-2006
Table 2 Average Cigarette Pack Price Breakdown: Brand Examples
Production/Imports/Exports
Table 3 Trade Statistics – Cigarettes 2001-2006
The Role and Effect of Cannabis/Marijuana
MARKET INDICATORS
Table 4 Deaths by Diseases of the Respiratory System 2001-2006
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 - UNITED KINGDOM
GALLAHER GROUP PLC - TOBACCO - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Gallaher Group Plc: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 3 Gallaher Group Plc: Production Statistics by Factory 2002-2005
COMPETITIVE POSITIONING
Summary 4 Gallaher Group Plc: Competitive Position 2006
IMPERIAL TOBACCO GROUP PLC - TOBACCO - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Imperial Tobacco Group Plc: Key Facts
Summary 6 Imperial Tobacco Group Ltd: Operational Indicators 2002-2004
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 7 Imperial Tobacco Group Plc: Competitive Position 2006
ROTHMANS (UK) LTD - TOBACCO - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 8 Rothmans (UK) Ltd: Key Facts
Summary 9 Rothmans UK Ltd: Operational Indicators 2003-2005
COMPANY BACKGROUND
PRODUCTION BY FACTORY
Summary 10 Rothmans (UK) Ltd: Production Statistics by Factory 2002-2005
COMPETITIVE POSITIONING
Summary 11 Rothmans (UK) Ltd: Competitive Position 2006
CIGARETTES IN THE UNITED KINGDOM
HEADLINES
TRENDS
Illicit Trade (Cigarettes)
Cigarettes: Price Bands
Table 17 Cigarette Sales by Price Platform 2001-2006
Table 18 Taxation and Duty Levies Brand Examples
Cigarettes: Filter Splits
Table 19 Slims/superslims Penetration 2006
Cigarettes: Pack Splits
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 20 Sales of Cigarettes by Tar Level: Volume 2001-2006
Table 21 Sales of Cigarettes by Tar Level: Value 2001-2006
Table 22 Sales of Cigarettes by Tar Level: % Volume Growth 2001-2006
Table 23 Sales of Cigarettes by Tar Level: % Value Growth 2001-2006
Table 24 Sales of Cigarettes by Price Band: % Volume Breakdown 2001-2006
Table 25 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2001-2006
Table 26 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2001-2006
Table 27 Sales of Cigarettes by Filter vs Non-filter 2001-2006
Table 28 Sales of Filter Cigarettes by Carbon vs Non-carbon 2001-2006
Table 29 Sales of Cigarettes by Length 2001-2006
Table 30 Sales of Cigarettes by Pack Size 2001-2006
Table 31 Sales of Cigarettes by Pack Type 2001-2006
Table 32 Cigarettes Company Shares 2002-2006
Table 33 Cigarettes Brand Shares 2003-2006
Table 34 Forecast Sales of Cigarettes by Tar Level: Volume 2006-2011
Table 35 Forecast Sales of Cigarettes by Tar Level: Value 2006-2011
Table 36 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2006-2011
Table 37 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2006-2011
Table 38 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2006-2011
Table 39 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2006-2011
Table 40 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2006-2011
Table 41 Forecast Sales of Cigarettes by Filter vs Non-filter 2006-2011
Table 42 Forecast Sales of Filter Cigarettes by Carbon vs Non-carbon 2006-2011
Table 43 Forecast Sales of Cigarettes by Length 2006-2011
Table 44 Forecast Sales of Cigarettes by Pack Size 2006-2011
Table 45 Forecast Sales of Cigarettes by Pack Type 2006-2011
CIGARS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 46 Sales of Cigars by Subsector: Volume 2001-2006
Table 47 Sales of Cigars by Subsector: Value 2001-2006
Table 48 Sales of Cigars by Subsector: % Volume Growth 2001-2006
Table 49 Sales of Cigars by Subsector: % Value Growth 2001-2006
Table 50 Company Shares of Cigars Excluding Cigarillos 2002-2006
Table 51 Brand Shares of Cigars Excluding Cigarillos 2003-2006
Table 52 Company Shares of Cigarillos 2002-2006
Table 53 Brand Shares of Cigarillos 2003-2006
Table 54 Forecast Sales of Cigars by Subsector: Volume 2006-2011
Table 55 Forecast Sales of Cigars by Subsector: Value 2006-2011
Table 56 Forecast Sales of Cigars by Subsector: % Volume Growth 2006-2011
Table 57 Forecast Sales of Cigars by Subsector: % Value Growth 2006-2011
SMOKING TOBACCO IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 58 Sales of Smoking Tobacco by Subsector: Volume 2001-2006
Table 59 Sales of Smoking Tobacco by Subsector: Value 2001-2006
Table 60 Sales of Smoking Tobacco by Subsector: % Volume Growth 2001-2006
Table 61 Sales of Smoking Tobacco by Subsector: % Value Growth 2001-2006
Table 62 Sales of Smoking Paraphernalia 2002-2005
Table 63 Company Shares of RYO Tobacco 2002-2006
Table 64 Brand Shares of RYO Tobacco 2003-2006
Table 65 Company Shares of Pipe Tobacco 2002-2006
Table 66 Brand Shares of Pipe Tobacco 2003-2006
Table 67 Forecast Sales of Smoking Tobacco by Subsector: Volume 2006-2011
Table 68 Forecast Sales of Smoking Tobacco by Subsector: Value 2006-2011
Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2006-2011
Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2006-2011