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: 76 | Publication date: Jan 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
Product coverage
Cigarettes; Cigarettes including RYO; Cigars; Smoking tobacco
Executive summary
Incidence of smoking falls
Tobacco companies in the UK are operating in an environment in which the incidence of smoking amongst adults continues to fall; indeed the rate of decline accelerated in 2007 as smokers took the introduction of the smoking ban across the UK as an opportunity to kick the habit. 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 anti-smoking advertisements and yearly rounds of tax increases, smoking is a habit which is being continually marginalised.
Taxes continue to 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 illegal supply and force consumers back into the legal market.
Legislation continues to disrupt the market
2007 was perhaps something of a watershed year for the tobacco industry, as the UK government introduced a ban on smoking in public places across the whole of the UK in July 2007, followed closely by an increase in the minimum age for buying tobacco products from 16 to 18 years of age. Certainly manufacturers have felt this change in terms of sales, but so too have retailers and on-trade outlets, which have suffered declining sales and patronage; pubs especially are seeing record numbers of closures as smokers choose to stay at home.
Economy cigarettes dominate
Economy brands benefited most from the upward movement in taxes, as many consumers continued to search for the cheapest products. Economy brands such as Richmond and Lambert & Butler have already dented the volume shares of premium brands such as Benson & Hedges, forcing Gallaher Group Plc to release its own economy variants of leading brands, such as Benson & Hedges Black. 2007 marked a watershed in the development of the economy segment, as Marlboro Gold, the only brand seemingly immune to the onset of the economy segment, recorded a share decline for the first time.
Consolidation at home and abroad
The UK tobacco industry is mainly characterised by cigarettes, which accounted for the vast majority of value sales in 2007. Imperial Tobacco Group Plc and Gallaher Group Plc were the main players in cigarettes, together accounting for over an 80% share of volume sales in that year. The biggest story in 2007 was Japan Tobacco Inc’s (JT) purchase of Gallaher in a £9.7 billion deal announced in December 2006; the deal consolidated JT’s position as the world’s third largest tobacco company behind Altria (Philip Morris) and British American Tobacco (BAT).
Future looks turbulent
Rather than the 2007 ban on smoking in public places being seen as an end to tobacco legislation, it would appear to mark the beginning of a new phase of legislation designed to cut smoking rates in the UK. Pictorial health warning are already on the statute book for introduction at the close of 2008, and under the premise of the government’s five year health plan, it would appear that there is a good chance that tobacco products will be removed from view in shops, and also some suggestion that brands might be outlawed altogether at some future date yet to be specified.
Table of contents
TOBACCO IN THE UNITED KINGDOM : MARKET INSIGHT
EXECUTIVE SUMMARY
Incidence of smoking falls
Taxes continue to rise
Legislation continues to disrupt the market
Economy cigarettes dominate
Consolidation at home and abroad
Future looks turbulent
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
Legislation: EU Directives
Health warnings
Duty paid packet marks
Advertising & Sponsorship
Smoking in public places
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 Deaths by Diseases of the Respiratory System 2002-2007
Table 7 Deaths from Heart Disease 2002-2007
Table 8 Deaths from Lung Cancer 2002-2007
Table 9 Illicit Trade Estimate 2002-2007
MARKET DATA
Table 10 Sales of Tobacco by Sector: Volume 2002-2007
Table 11 Sales of Tobacco by Sector: Value 2002-2007
Table 12 Sales of Tobacco by Sector: % Volume Growth 2002-2007
Table 13 Sales of Tobacco by Sector: % Value Growth 2002-2007
Table 14 Sales of Cigarettes by Distribution Format: % Analysis 2002-2007
Table 15 Forecast Sales of Tobacco by Sector: Volume 2007-2012
Table 16 Forecast Sales of Tobacco by Sector: Value 2007-2012
Table 17 Forecast Sales of Tobacco by Sector: % Volume Growth 2007-2012
Table 18 Forecast Sales of Tobacco by Sector: % Value Growth 2007-2012
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 2007
ROTHMANS (UK) LTD - TOBACCO - UNITED KINGDOM
STRATEGIC DIRECTION
KEY FACTS
Summary 4 Rothmans (UK) Ltd: Key Facts
COMPANY BACKGROUND
PRODUCTION BY FACTORY
COMPETITIVE POSITIONING
Summary 5 Rothmans (UK) Ltd: Competitive Position 2007
CIGARETTES IN THE UNITED KINGDOM
HEADLINES
TRENDS
Illicit trade (Cigarettes)
Cigarettes: Price Bands
Summary 6 Cigarette Price Band Definitions
Cigarettes: Filter Splits
Cigarettes: Pack Splits
Distribution
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 19 Sales of Cigarettes by Tar Level: Volume 2002-2007
Table 20 Sales of Cigarettes by Tar Level: Value 2002-2007
Table 21 Sales of Cigarettes by Tar Level: % Volume Growth 2002-2007
Table 22 Sales of Cigarettes by Tar Level: % Value Growth 2002-2007
Table 23 Sales of Cigarettes by Price Band: % Volume Breakdown 2002-2007
Table 24 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2002-2007
Table 25 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2002-2007
Table 26 Sales of Cigarettes by Filter Vs Non-filter 2002-2007
Table 27 Sales of Filter Cigarettes by Carbon Vs Non-carbon 2002-2007
Table 28 Sales of Cigarettes by Length 2002-2007
Table 29 Sales of Cigarettes by Regular/Slim 2006-2007
Table 30 Sales of Cigarettes by Pack Size 2002-2007
Table 31 Sales of Cigarettes by Pack Type 2002-2007
Table 32 Cigarettes Company Shares 2003-2007
Table 33 Cigarettes Brand Shares 2004-2007
Table 34 Forecast Sales of Cigarettes by Tar Level: Volume 2007-2012
Table 35 Forecast Sales of Cigarettes by Tar Level: Value 2007-2012
Table 36 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
Table 37 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
Table 38 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012
Table 39 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012
Table 40 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012
Table 41 Forecast Sales of Cigarettes by Filter Vs Non-filter 2007-2012
Table 42 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon 2007-2012
Table 43 Forecast Sales of Cigarettes by Length 2007-2012
Table 44 Forecast Sales of Cigarettes by Regular/Slim 2007-2012
Table 45 Forecast Sales of Cigarettes by Pack Size 2007-2012
Table 46 Forecast Sales of Cigarettes by Pack Type 2007-2012
CIGARS IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 47 Sales of Cigars by Subsector: Volume 2002-2007
Table 48 Sales of Cigars by Subsector: Value 2002-2007
Table 49 Sales of Cigars by Subsector: % Volume Growth 2002-2007
Table 50 Sales of Cigars by Subsector: % Value Growth 2002-2007
Table 51 Company Shares of Cigars Exluding Cigarillos 2003-2007
Table 52 Brand Shares of Cigars Exluding Cigarillos 2004-2007
Table 53 Company Shares of Cigarillos 2003-2007
Table 54 Brand Shares of Cigarillos 2004-2007
Table 55 Forecast Sales of Cigars by Subsector: Volume 2007-2012
Table 56 Forecast Sales of Cigars by Subsector: Value 2007-2012
Table 57 Forecast Sales of Cigars by Subsector: % Volume Growth 2007-2012
Table 58 Forecast Sales of Cigars by Subsector: % Value Growth 2007-2012
SMOKING TOBACCO IN THE UNITED KINGDOM
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
NEW PRODUCT DEVELOPMENTS
PROSPECTS
SECTOR DATA
Table 59 Sales of Smoking Tobacco by Subsector: Volume 2002-2007
Table 60 Sales of Smoking Tobacco by Subsector: Value 2002-2007
Table 61 Sales of Smoking Tobacco by Subsector: % Volume Growth 2002-2007
Table 62 Sales of Smoking Tobacco by Subsector: % Value Growth 2002-2007
Table 63 Company Shares of RYO Tobacco 2003-2007
Table 64 Brand Shares of RYO Tobacco 2004-2007
Table 65 Company Shares of Pipe Tobacco 2003-2007
Table 66 Brand Shares of Pipe Tobacco 2004-2007
Table 67 Forecast Sales of Smoking Tobacco by Subsector: Volume 2007-2012
Table 68 Forecast Sales of Smoking Tobacco by Subsector: Value 2007-2012
Table 69 Forecast Sales of Smoking Tobacco by Subsector: % Volume Growth 2007-2012
Table 70 Forecast Sales of Smoking Tobacco by Subsector: % Value Growth 2007-2012