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Country Report

Indonesia Flag Tobacco in Indonesia

| Pages: 75

Price: US$1,900

About this Report

EXECUTIVE SUMMARY

Cigarette consumption continues to record strong growth

With ever increasing smoking prevalence amongst both women and men, Indonesia witnessed stronger consumption of tobacco products in 2012 despite the high excise increase which was implemented during the year. The good economy inflated purchasing power and the relatively low cost of cigarettes compared to neighbouring countries continued to facilitate tobacco to flourish. As raw materials and production are also mostly sourced domestically, tobacco was thus resilient from the global economic downturn. Exports continued to be relatively slower, whilst domestic sales soared. Tobacco recorded strong volume growth rates across all categories despite the high retail price increase during the year.

SKM ‘mild’ most dynamic segment

SKM or Sigaret Kretek Mesin (machine-manufactured cigarettes) of ‘mild’ variant or ‘lighter’ high tar cigarettes as opposed to the traditional ‘regular’ variant or the ‘heavier’ high tar cigarettes did not show signs of slowing down despite substantial tax increase was imposed year-on-year by the government. In fact, this segment was the primary fuel of growth of total volume of cigarettes in the country at the expense of the further contribution decline from the traditional SKT (hand-rolled cigarettes) and the SKM ‘Regular’. The continuing trend from the previous years, economy-priced products of these ‘lighter’ high tar cigarettes have become the key to success to leading manufacturers, including the best performing company, Sampoerna Tbk PT, HM with its U Mild, Vegas Mild and Trend Mild.

Companies lose profitability due to high tax increase

Although revenue sales substantially increased in 2012 across leading manufacturers, most of them suffered profitability decline during the year as production costs soared above the retail price increase. By absorbing increased production costs, the companies expect to retain their consumer base and volume sales. Bentoel Internasional Investama Tbk PT was the affected with both lower volume sales and losing profitability due to increasing production costs, in particular the grouping of tax excise in SPM (machine manufactured white cigarettes) into one tariff. Meanwhile, Sampoerna Tbk PT, HM achieved the best performance through its strategy in penetrating the economy segment of SKM ‘Mild’.

Economy brands prefer traditional stores

Due to a relatively higher retailing fee tagged by modern retail chains, the majority of economy brands prefer to be distributed through a vast base of traditional retailing channels, primarily street vendors. Therefore, brands available at modern retail stores continue to be dominated by middle to premium-priced products, or the upper range of economy-priced whilst vice versa, traditional channels prefer to stock the most popular brands in middle to economy-priced bands. Street vendors continued to account for the majority of cigarettes sales in 2012, despite continuous increase of contribution from modern channels such as convenience stores.

PP109/2012 released, harsh environment ahead

The long anticipated regulation which was pushed by local and International anti-tobacco NGOs and Ministry of Health was finally legalized on 24 December 2012 and officially announced on January 2013.The many restrictive environments contained in this regulation include the most opposed by the tobacco industry: banning sponsorship from promoting its brand/logo/image and pictorial graphic warning on every cigarette packet. Peraturan Pemerintah (PP) or Government legislation number109 in 2012 awakes further controversies and market response is difficult to predict. Overall, a substantial slowdown of both production and consumption is anticipated across the forecast period. The volume growth rate is still expected to be positive yet downsized by nearly half than previously estimated.

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Overview

Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in Indonesia with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Tobacco industry in Indonesia, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in Indonesia for free:

The Tobacco in Indonesia 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 by origin, exports by destination
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Tobacco in Indonesia?
  • What are the major brands in Indonesia?
  • Which sector of the tobacco products market is the largest by value sales in Indonesia?
  • Which sector of the tobacco products market has been growing the fastest, by volume and value, in Indonesia?
  • Which sector is the most heavily taxed in Indonesia?
  • Which companies dominate in the total tobacco market in Indonesia in terms of market share?
  • What is the distribution channel split for the tobacco products market in Indonesia?

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

Tobacco in Indonesia - Industry Overview

EXECUTIVE SUMMARY

Cigarette consumption continues to record strong growth

SKM ‘mild’ most dynamic segment

Companies lose profitability due to high tax increase

Economy brands prefer traditional stores

PP109/2012 released, harsh environment ahead

OPERATING ENVIRONMENT

Legislation

  • Summary 1 Legislation Summary at a Glance

Fatwa Haram

Minimum legal smoking age

Smoking prevalence

Tar levels

Health warnings

Advertising and sponsorship

Point-of-sale display bans

Smoking in public places

Low Ignition Propensity (LIP) regulation

Electronic cigarettes

Litigation

Death by cause

  • Table 1 Death by Cause 2008-2012

TAXATION AND PRICING

Duty paid packet marks

Taxation rates

  • Summary 2 Excise Rates of Tobacco Products 2012
  • Summary 3 Excise Rates of Imported Tobacco Products 2012
  • Summary 4 Excise Rates of Tobacco Products 2013
  • Summary 5 Excise Rates of Imported Tobacco Products 2013

Average cigarette pack price breakdown

  • Table 2 Average Cigarette Pack Price Breakdown: Brand Examples

PRODUCTION/IMPORTS/EXPORTS

  • Table 3 Trade Statistics – Tobacco Leaf 2007-2012

Indonesian kretek

Illicit trade in cigarettes

MARKET INDICATORS

  • Table 4 Illicit Trade Estimate of Cigarettes: Volume 2007-2012

MARKET DATA

  • Table 5 Sales of Tobacco by Category: Volume 2007-2012
  • Table 6 Sales of Tobacco by Category: Value 2007-2012
  • Table 7 Sales of Tobacco by Category: % Volume Growth 2007-2012
  • Table 8 Sales of Tobacco by Category: % Value Growth 2007-2012
  • Table 9 Forecast Sales of Tobacco by Category: Volume 2012-2017
  • Table 10 Forecast Sales of Tobacco by Category: Value 2012-2017
  • Table 11 Forecast Sales of Tobacco by Category: % Volume Growth 2012-2017
  • Table 12 Forecast Sales of Tobacco by Category: % Value Growth 2012-2017

DEFINITIONS

SOURCES

  • Summary 6 Research Sources

Tobacco in Indonesia - Company Profiles

Djarum PT in Tobacco (Indonesia)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 7 Djarum PT: Key Facts

COMPANY BACKGROUND

PRODUCTION

  • Summary 8 Djarum PT: Production Statistics 2012

COMPETITIVE POSITIONING

  • Summary 9 Djarum PT: Competitive Position 2012

Gudang Garam Tbk PT in Tobacco (Indonesia)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 10 Gudang Garam Tbk PT: Key Facts
  • Summary 11 Gudang Garam Tbk PT: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

  • Summary 12 Gudang Garam Tbk PT: Competitive Position 2012

Sampoerna Tbk PT, HM in Tobacco (Indonesia)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 13 HM Sampoerna Tbk PT: Key Facts
  • Summary 14 HM Sampoerna Tbk PT: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

  • Summary 15 HM Sampoerna Tbk PT: Competitive Position 2012

Taru Martani PT in Tobacco (Indonesia)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 16 Taru Martani PT: Key Facts

COMPANY BACKGROUND

PRODUCTION

  • Summary 17 Taru Martani PT: Production Statistics 2012

COMPETITIVE POSITIONING

  • Summary 18 Taru Martani PT: Competitive Position 2012

Cigarettes in Indonesia - Category Analysis

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

  • Summary 19 Cigarettes - New Product Launches

DISTRIBUTION

PROSPECTS

CATEGORY BACKGROUND

Cigarettes: price bands

  • Summary 20 Cigarette Price Band Definitions

Cigarettes: tobacco blend

Cigarettes: menthol/standard

Cigarettes: filter/non-filter

Cigarettes: carbon/standard filter

Cigarettes: filter length

Cigarettes: regular vs slims vs superslims

Cigarettes: pack size

Cigarettes: pack type

CATEGORY DATA

  • Table 13 Sales of Cigarettes by Tar Level: Volume 2007-2012
  • Table 14 Sales of Cigarettes by Tar Level: Value 2007-2012
  • Table 15 Sales of Cigarettes by Tar Level: % Volume Growth 2007-2012
  • Table 16 Sales of Cigarettes by Tar Level: % Value Growth 2007-2012
  • Table 17 Sales of Cigarettes by Price Band: % Volume Breakdown 2007-2012
  • Table 18 Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2007-2012
  • Table 19 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2007-2012
  • Table 20 Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2007-2012
  • Table 21 Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown 2007-2012
  • Table 22 Sales of Cigarettes by Length: % Volume Breakdown 2007-2012
  • Table 23 Sales of Cigarettes by Regular/Slim/Superslim: % Volume Breakdown 2007-2012
  • Table 24 Sales of Cigarettes by Pack Size: % Volume Breakdown 2007-2012
  • Table 25 Sales of Cigarettes by Pack Type: % Volume Breakdown 2007-2012
  • Table 26 NBO Company Shares of Cigarettes: % Volume 2008-2012
  • Table 27 Cigarettes Brand Shares 2009-2012
  • Table 28 Sales of Cigarettes by Distribution Format: % Analysis 2007-2012
  • Table 29 Cigarettes: Production, Imports and Exports: Total Volume 2007-2012
  • Table 30 Forecast Sales of Cigarettes by Tar Level: Volume 2012-2017
  • Table 31 Forecast Sales of Cigarettes by Tar Level: Value 2012-2017
  • Table 32 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2012-2017
  • Table 33 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2012-2017
  • Table 34 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2012-2017
  • Table 35 Forecast Sales of Cigarettes by Standard/Menthol: % Volume Breakdown 2012-2017
  • Table 36 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2012-2017
  • Table 37 Forecast Sales of Cigarettes by Filter Vs Non-filter: % Volume Breakdown 2012-2017
  • Table 38 Forecast Sales of Filter Cigarettes by Carbon Vs Non-carbon: % Volume Breakdown 2012-2017
  • Table 39 Forecast Sales of Cigarettes by Length: % Volume Breakdown 2012-2017
  • Table 40 Forecast Sales of Cigarettes by Regular/Slim/Superslim: % Volume Breakdown 2012-2017
  • Table 41 Forecast Sales of Cigarettes by Pack Size: % Volume Breakdown 2012-2017
  • Table 42 Forecast Sales of Cigarettes by Pack Type: % Volume Breakdown 2012-2017

Cigars in Indonesia - Category Analysis

HEADLINES

TRENDS

HAND-MADE VERSUS MACHINE MANUFACTURED SPLITS

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

  • Summary 21 Cigars - New Product Launches

DISTRIBUTION

PROSPECTS

CATEGORY DATA

  • Table 43 Sales of Cigars by Category: Volume 2007-2012
  • Table 44 Sales of Cigars by Category: Value 2007-2012
  • Table 45 Sales of Cigars by Category: % Volume Growth 2007-2012
  • Table 46 Sales of Cigars by Category: % Value Growth 2007-2012
  • Table 47 Sales of Cigars by Handmade vs Machine-manufactured: % Volume Breakdown 2007-2012
  • Table 48 Sales of Cigars by Handmade vs Machine-manufactured: % Value Breakdown 2007-2012
  • Table 49 NBO Company Shares of Cigars Excluding Cigarillos: % Volume 2008-2012
  • Table 50 LBN Brand Shares of Cigars Excluding Cigarillos: % Volume 2009-2012
  • Table 51 NBO Company Shares of Cigarillos: % Volume 2008-2012
  • Table 52 LBN Brand Shares of Cigarillos: % Volume 2009-2012
  • Table 53 Distribution of Cigars by Format: % Volume 2007-2012
  • Table 54 Forecast Sales of Cigars by Category: Volume 2012-2017
  • Table 55 Forecast Sales of Cigars by Category: Value 2012-2017
  • Table 56 Forecast Sales of Cigars by Category: % Volume Growth 2012-2017
  • Table 57 Forecast Sales of Cigars by Category: % Value Growth 2012-2017

Smokeless Tobacco in Indonesia - Category Analysis

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

Smoking Tobacco in Indonesia - Category Analysis

HEADLINES

TRENDS

The role and effect of cannabis/marijuana

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

CATEGORY DATA

  • Table 58 Sales of Smoking Tobacco by Category: Volume 2007-2012
  • Table 59 Sales of Smoking Tobacco by Category: Value 2007-2012
  • Table 60 Sales of Smoking Tobacco by Category: % Volume Growth 2007-2012
  • Table 61 Sales of Smoking Tobacco by Category: % Value Growth 2007-2012
  • Table 62 NBO Company Shares of RYO Tobacco: % Volume 2008-2012
  • Table 63 LBN Brand Shares of RYO Tobacco: % Volume 2009-2012
  • Table 64 Distribution of Smoking Tobacco by Format: % Volume 2007-2012
  • Table 65 Forecast Sales of Smoking Tobacco by Category: Volume 2012-2017
  • Table 66 Forecast Sales of Smoking Tobacco by Category: Value 2012-2017
  • Table 67 Forecast Sales of Smoking Tobacco by Category: % Volume Growth 2012-2017
  • Table 68 Forecast Sales of Smoking Tobacco by Category: % Value Growth 2012-2017

Segmentation

This market research report includes the following:

  • Tobacco
    • Cigarettes
      • High Tar Cigarettes
      • Mid Tar Cigarettes
      • Low Tar Cigarettes
      • Ultra Low Tar Cigarettes
    • Cigars
      • Cigars Excluding Cigarillos
        • Large Cigars
        • Standard Cigars
        • Small Cigars
      • Cigarillos
    • Smoking Tobacco
      • RYO Tobacco
      • Pipe Tobacco
    • Smokeless Tobacco
      • Chewing Tobacco
        • Asian-Style Chewing Tobacco
        • US-Style Chewing Tobacco
        • Other Chewing Tobacco
      • Snuff
        • Moist Snuff
          • US-Style Moist Snuff ('Dip')
            • Loose US-Style Moist Snuff
            • Portion US-Style Moist Snuff
          • Swedish-Style Snus
            • Loose Swedish-Style Snus
            • Portion Swedish-Style Snus
          • Asian Style Creamy Snuff
        • Dry Snuff
        • Hard Snuff
    • Cigarettes Including RYO Stick Equivalent
      • High Tar Cigarettes
      • Mid Tar Cigarettes
      • Low Tar Cigarettes
      • Ultra Low Tar Cigarettes
      • RYO Cigarettes

Statistics Included

For each category and subcategory you will receive the following data in Excel format:

From Passport

  • Market Sizes
  • Company Shares
  • Brand Shares
  • Distribution
  • Pricing
  • Analysis by Type
  • Cigarettes by Blend
  • Cigarettes by Carbon Filter/Non-Carbon Filter
  • Cigarettes by Filtered/Unfiltered
  • Cigarettes by Length
  • Cigarettes by Pack Size
  • Cigarettes by Pack Type
  • Cigarettes by Price Band
  • Cigarettes by Regular/Slim/Superslim
  • Cigarettes by Standard/Menthol
  • Illicit Trade Penetration
  • Products by Ingredient
  • Smoking population - number of adult smokers
  • Smoking prevalence - % of adult population
  • Taxation
  • Trade Statistics - Volume

Market size details:

  • Retail volume
  • Retail volume % growth
  • Retail volume per capita
  • Retail value retail selling price % growth
  • Retail value retail selling price local currency, USD, EUR, GBP, CHF, JPY
  • Retail value retail selling price per capita local currency, USD, EUR, GBP, CHF, JPY
  • Illicit trade volume
  • Illicit trade volume % growth
  • Illicit trade volume per capita
  • Retail volume (sticks)
  • Retail volume (sticks) % growth
  • Retail volume (sticks) per capita
  • Retail plus illicit trade
  • Retail plus illicit trade % growth
  • Retail plus illicit trade per capita

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