- Flavour capsule cigarettes were first introduced in the US during August 2008 by RJ Reynolds with the launch of Camel Crush. Camel Crush is a brand of cigarettes with capsules installed in the filter which, when crushed, release menthol flavour. Since its inception, flavour capsule cigarettes have not only gained volume share in cigarettes, but they have also experienced high volume growth in a category which had previously been in consecutive year-on-year decline for fifteen years. During 2012, Altria, the parent company of Philip Morris, entered the lucrative capsule cigarettes market with the launch of Marlboro NXT. This sparked further growth as the volume growth rate for flavour capsule cigarettes jumped from 7% in 2012 to 14% in 2013. Camel Crush and Marlboro NXT cigarettes are also positioned at premium price points, which further drives revenue growth for tobacco manufacturers. Consumers are drawn to flavour capsule cigarettes for three primary reasons: first, the novelty of having the option to choose between menthol and non-menthol; second, the overall popularity of menthol cigarettes; and third, the packaging design, marketing, and novelty value all inspire the feeling of smoking an advanced and almost futuristic cigarette.
- Cigarettes in the US is a highly consolidated category in which the three leading players accounted for a combined retail volume share of 85% in 2013. Philip Morris was the clear leader in the category in 2013 with a volume share of 47%, followed by RJ Reynolds with 25% and Lorillard with 14%. Some analysts have argued that FDA regulation and increased federal restrictions have given Philip Morris a competitive advantage as the company has the largest marketing and advertising budget in the industry. During August 2009, both Lorillard and RJ Reynolds sued in an attempt to block the marketing restrictions which the FDA had put in place earlier in the year. This case was settled in March 2012 with a majority of the FDA regulations being upheld.
- Retail volume sales of cigarettes are expected to continue declining over the forecast period, falling at a CAGR of -2% over the forecast period. Cigarettes have historically been dubbed ‘recession proof’, or at least ‘recession resistant’, as a certain proportion of the US population is expected to continue smoking regardless of the cost of doing so or the economic outlook. However, due to the health risks inherent in smoking and the efforts of associations such as the Campaign for Tobacco-Free Kids and the American Lung Association to educate the public about the harmful effects of tobacco use, volume sales if cigarettes are expected to continue declining sharply over the forecast period. In addition, further tobacco tax increases at federal and state level and public smoking bans are set to pose even greater obstacles to positive growth in cigarettes over the forecast period. Retail value sales of cigarettes are thus expected to increase in value by 1% in constant 2013 terms over the course of the entire forecast period.
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Discover the latest market trends and uncover sources of future market growth for the Cigarettes industry in USA with research from Euromonitor's team of in-country analysts.
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If you're in the Cigarettes industry in USA, our research will save you time and money while empowering you to make informed, profitable decisions.
The Cigarettes in USA market research report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volumes and values, company and brand market shares
- Five year forecasts of market trends and market growth
- Production, imports, and exports of finished cigarettes
- Robust and transparent market research methodology, conducted in-country
Our market research reports answer questions such as:
- What is the market size of Cigarettes in USA?
- What are the major brands in USA?
- What is the legislative environment like in USA?
- What are the rates of cigarette taxation in USA?
- Do premium, mid-price or economy cigarettes dominate in USA?
- What is the rate of illicit trade in USA?
- How many smokers are there in the country?
Why buy this report?
- Gain competitive intelligence about market leaders
- Track key industry trends, opportunities and threats
- Inform your marketing, brand, strategy and market development, sales and supply functions
This industry report originates from Passport, our Tobacco market research database.
Table of Contents
Cigarettes in the US - Category Analysis
NEW PRODUCT DEVELOPMENTS
- Summary 1 Cigarettes: New Product Launches
Cigarettes: price bands
- Summary 2 Cigarette Price Band Definitions
Cigarettes: tobacco blend
Cigarettes: carbon/standard filter
Cigarettes: filter length
Cigarettes: regular vs slims vs superslims vs microslims
Cigarettes: pack size
Cigarettes: pack type
- Table 1 Sales of Cigarettes by Tar Level: Volume 2008-2013
- Table 2 Sales of Cigarettes by Tar Level: Value 2008-2013
- Table 3 Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
- Table 4 Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
- Table 5 Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
- Table 6 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2008-2013
- Table 7 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
- Table 8 Sales of Cigarettes by Filter vs Non-filter: % Volume 2008-2013
- Table 9 Sales of Filter Cigarettes by Carbon vs Non-carbon: % Volume 2008-2013
- Table 10 Sales of Cigarettes by Length: % Volume 2008-2013
- Table 11 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2008-2013
- Table 12 Sales of Cigarettes by Pack Size: % Volume 2008-2013
- Table 13 Sales of Cigarettes by Pack Type: % Volume 2008-2013
- Table 14 NBO Company Shares of Cigarettes: % Volume 2009-2013
- Table 15 LBN Brand Shares of Cigarettes: % Volume 2009-2012
- Table 16 Sales of Cigarettes by Distribution Format: % Volume 2008-2013
- Table 17 Production, Imports and Exports of Cigarettes: Total Volume 2008-2013
- Table 18 Forecast Sales of Cigarettes by Tar Level: Volume 2013-2018
- Table 19 Forecast Sales of Cigarettes by Tar Level: Value 2013-2018
- Table 20 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2013-2018
- Table 21 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2013-2018
- Table 22 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2013-2018
- Table 23 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2013-2018
- Table 24 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2013-2018
- Table 25 Forecast Sales of Cigarettes by Filter vs Non-filter: % Volume 2013-2018
- Table 26 Forecast Sales of Filter Cigarettes by Carbon vs Non-carbon: % Volume 2013-2018
- Table 27 Forecast Sales of Cigarettes by Length: % Volume 2013-2018
- Table 28 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
- Table 29 Forecast Sales of Cigarettes by Pack Size: % Volume 2013-2018
- Table 30 Forecast Sales of Cigarettes by Pack Type: % Volume 2013-2018
Cigarettes in the US - Company Profiles
Lorillard Tobacco Co in Tobacco (USA)
- Summary 3 Lorillard Tobacco Co: Key Facts
- Summary 4 Lorillard Tobacco Co: Operational Indicators
- Summary 5 Lorillard Tobacco Co: Production Statistics 2013
- Summary 6 Lorillard Tobacco Co: Competitive Position 2013
Philip Morris USA Inc in Tobacco (USA)
- Summary 7 Philip Morris USA Inc: Key Facts
- Summary 8 Philip Morris USA Inc: Operational Indicators
- Summary 9 Philip Morris USA Inc: Competitive Position 2013
RJ Reynolds Tobacco Co in Tobacco (USA)
- Summary 10 RJ Reynolds Tobacco Co: Key Facts
- Summary 11 RJ Reynolds Tobacco Co: Operational Indicators
- Summary 12 RJ Reynolds Tobacco Co: Competitive Position 2013
Tobacco in the US - Industry Context
Cigarette value sales continue to climb despite tumbling volume
Smokeless tobacco resumes aggressive growth
Looming changes to tax regulation threatens smoking tobacco
Health and beauty specialist retailers chain CVS pledges to stop distributing tobacco
External threats to the tobacco industry continue to mount
- Summary 13 Legislation Summary at a Glance
FDA considers menthol ban
Minimum legal smoking age
- Table 31 Smoking Prevalence in Adult Population 2008-2013
- Table 32 Number of Adult Smokers by Gender 2008-2013
Advertising and sponsorship
Point-of-sale display bans
Smoking in public places
Low ignition propensity (LIP) regulation
Flavoured tobacco product ban
Death by cause
- Table 33 Death by Cause 2009-2013
TAXATION AND PRICING
Duty paid packet marks
- Table 34 Taxation and Duty Levies 2008-2013
Average cigarette pack price breakdown
- Table 35 Average Cigarette Pack Price Breakdown: Brand Examples
- Table 36 Trade Statistics – Cigarettes 2009-2013
- Table 37 Trade Statistics – Tobacco Leaf 2008-2013
Illicit trade in cigarettes
- Table 38 Illicit Trade Estimate of Cigarettes: Volume 2008-2013
- Table 39 Sales of Tobacco by Category: Volume 2008-2013
- Table 40 Sales of Tobacco by Category: Value 2008-2013
- Table 41 Sales of Tobacco by Category: % Volume Growth 2008-2013
- Table 42 Sales of Tobacco by Category: % Value Growth 2008-2013
- Table 43 Forecast Sales of Tobacco by Category: Volume 2013-2018
- Table 44 Forecast Sales of Tobacco by Category: Value 2013-2018
- Table 45 Forecast Sales of Tobacco by Category: % Volume Growth 2013-2018
- Table 46 Forecast Sales of Tobacco by Category: % Value Growth 2013-2018
- Summary 14 Research Sources