Cigarettes in Ireland are the most expensive in Europe
Ireland has been through a difficult economic period. However, consumer sentiment improved significantly over the review period. Disposable incomes are starting to stabilise and confidence is returning to the market. However, Ireland is now the most expensive country in Europe for cigarettes. Following an increase in excise in the 2014 Budget, the price of a pack of 20 cigarettes rose by €0.10. The resulting impact is consumers moving to mid-priced and economy brands as well as RYO alternatives. There has also been an increased number of smokers opting for illicit products.
Illicit trade continues to be a problem in Ireland
Illicit trade continues to be strong in the Irish market. Illicit trade was estimated to have accounted for around 28% of total cigarette sales in 2013. With the cost of smoking rising, consumers are finding it difficult to justify the spending on their smoking habit and as a result many are finding illicit trade more attractive. Despite the government and customs officers’ best efforts, the black market continues to grow. With the likely introduction of plain packaging in the future, many manufacturers will find their products much easier to imitate and so illicit trade could increase further.
RYO tobacco continues to see sales surge
The RYO tobacco category continues to see a surge in sales. Despite disposable income levels experiencing a slight recovery, the price of regular cigarettes is increasing and many consumers are not able to justify the cost of smoking cigarettes. More premium cigarette brands are launching brand extensions within the RYO category. Make your own (MYO) products are also increasing in popularity. However, due to a ban on display advertising, it is difficult for new products to gain any significant momentum, with this only likely to be achieved through word-of- mouth recommendation.
Pipe tobacco now a niche category
Pipe tobacco continues to be a declining category. Pipe smoking is becoming a niche and is almost completely confined to an older generation. As a result, there is little innovation in this category as consumers tend to stick with the brand they have consumed for years. Pipe tobacco products are also in decline due to a lack of young consumers taking up pipe smoking.
Challenging future predicted for the tobacco industry
The future of the tobacco industry is filled with significant challenges. As the Irish government looks to make Ireland smoke-free and with the possibility of plain packaging in the future, brand owners will find it difficult to launch new products and differentiate their products from others in the marketplace. Plain packaging also has the potential to be easily imitated and could contribute to surging sales in the black market.
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Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in Ireland with research from Euromonitor's team of in-country analysts.
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The Tobacco in Ireland 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 Ireland?
- What are the major brands in Ireland?
- Which sector of the tobacco products market is the largest by value sales in Ireland?
- Which sector of the tobacco products market has been growing the fastest, by volume and value, in Ireland?
- Which sector is the most heavily taxed in Ireland?
- Which companies dominate in the total tobacco market in Ireland in terms of market share?
- What is the distribution channel split for the tobacco products market in Ireland?
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- Gain competitive intelligence about market leaders
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This industry report originates from Passport, our Tobacco market research database.