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Country Report

South Africa Flag Tobacco in South Africa

| Pages: 68

Price: US$2,100

About this Report

EXECUTIVE SUMMARY

South African tobacco experiences volume declines in 2014

Tobacco has achieved value growth in 2014 due to rising taxes increasing prices. However, in volume terms the market is declining due to a decline in the sale of cigarettes. Whilst price hikes can see consumers switching to widely available illicit cigarettes, in times of economic pressure consumers may have had to switch to lower priced brands and other categories, such as RYO tobacco.

Value for money and added value drive cigarette sales in South Africa in 2014

Consumers continue to feel the impact of decreasing disposable income as the price of consumer goods increases. Thus, they continue to seek products that offer either value for money, or added value. More recently, leading manufacturers introduced cheaper, Virginia blend variants to their leading brands e.g. Philip Morris’ Marlboro Beyond and JTI’s Winston Slide. Capsule cigarettes are also a growing trend in South Africa, amongst the middle to upper LSM group due to their mid to high price range. Consumers enjoy the way that they can add a flavour to their cigarettes. New product launches from the likes of British American Tobacco and JT International SA (Pty) Ltd appeal to this trend.

British American Tobacco dominates South African tobacco in 2014

With approximately 26 brands out of a total of 34 brands, British American Tobacco continues to dominate South African cigarettes. Since cigarettes make up nearly 90% of total value sales, British American Tobacco has a stronghold on South African tobacco. JT International South Africa (Pty) Ltd and Philip Morris South Africa (Pty) Ltd are other significant players which hold leading brands Camel and Marlboro respectively; however, their market shares are both under 5%.

Grocery retailers remains the leading distribution channel for tobacco products

The bulk of tobacco products in South Africa continued to be sold through grocery retailers such as supermarkets and tobacco specialists. Supermarkets accounted for the highest share of volume sales due to their easy access and convenience. In addition, the high volume share of supermarkets can be attributed to these outlets offering relatively lower-priced products when compared with other retail channels. This applied predominantly to cigarettes, with tobacco specialists being the leading channel for cigars and smoking tobacco. Despite the popularity of supermarkets, the distribution of tobacco is diversifying. Tobacco products are increasingly being sold through other retail channels, such as kiosks, newsagents, street vendors and spaza shops.

Potential legislative changes to exacerbate volume decline over the forecast period

  • Tobacco in South Africa is expected to continue to decline in volume terms over the forecast period. Potential changes restricting the advertising and marketing of tobacco products, such as changes to the amount of display space allowed in-store, the inclusion of graphic images on packaging and even further restrictions on smoking in public places, will all serve to place increased pressure on cigarette manufacturers. Amongst the upper LSM groups, the growth of e-cigarettes may result in a drop of cigarette sales, and in particular the more expensive cigarette brands. Overall however, e-cigarette growth has a negligible impact on cigarette sales as it targets a small group of consumers who can afford the high price tag.

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Overview


Discover the latest market trends and uncover sources of future market growth for the Tobacco industry in South Africa 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 South Africa, 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 South Africa for free:

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

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 South Africa - Industry Overview

EXECUTIVE SUMMARY

South African tobacco experiences volume declines in 2014

Value for money and added value drive cigarette sales in South Africa in 2014

British American Tobacco dominates South African tobacco in 2014

Grocery retailers remains the leading distribution channel for tobacco products

Potential legislative changes to exacerbate volume decline over the forecast period

OPERATING ENVIRONMENT

Legislation

  • Summary 1 Legislation Summary at a Glance

Country-specific legislation

Minimum legal smoking age

Smoking prevalence

  • Table 1 Smoking Prevalence in Adult Population 2010-2014
  • Table 2 Number of Adult Smokers by Gender 2010-2014

Tar levels

Health warnings

Advertising and sponsorship

Point-of-sale display bans

Smoking in public places

Low ignition propensity (LIP) cigarette regulation

Flavoured tobacco product ban

Plain packaging

‘Reduced harm’

Electronic cigarettes

Litigation

Death by cause

  • Table 3 Death by Cause 2010-2014

TAXATION AND PRICING

Duty paid packet marks

Taxation rates

  • Table 4 Taxation and Duty Levies 2009-2014

Average cigarette pack price breakdown

  • Table 5 Average Cigarette Pack Price Breakdown: Brand Examples

PRODUCTION/IMPORTS/EXPORTS

  • Table 6 Trade Statistics – Cigarettes 2009-2014

Illicit trade in cigarettes

MARKET INDICATORS

  • Table 7 Illicit Trade Estimate of Cigarettes: Volume 2009-2014

MARKET DATA

  • Table 8 Sales of Tobacco by Category: Volume 2009-2014
  • Table 9 Sales of Tobacco by Category: % Volume Growth 2009-2014
  • Table 10 Sales of Tobacco by Category: % Value Growth 2009-2014
  • Table 11 Forecast Sales of Tobacco by Category: Volume 2014-2019
  • Table 12 Forecast Sales of Tobacco by Category: Value 2014-2019
  • Table 13 Forecast Sales of Tobacco by Category: % Volume Growth 2014-2019
  • Table 14 Forecast Sales of Tobacco by Category: % Value Growth 2014-2019

DEFINITIONS

SOURCES

  • Summary 2 Research Sources

Tobacco in South Africa - Company Profiles

British American Tobacco (South Africa) Ltd in Tobacco (South Africa)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 3 British American Tobacco (South Africa) Ltd: Key Facts

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

  • Summary 4 British American Tobacco (South Africa) Ltd: Competitive Position 2014

JT International South Africa (Pty) Ltd in Tobacco (South Africa)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 5 JT International South Africa (Pty) Ltd: Key Facts

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

  • Summary 6 JT International South Africa (Pty) Ltd: Competitive Position 2014

Philip Morris South Africa (Pty) Ltd in Tobacco (South Africa)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 7 Philip Morris South Africa (Pty) Ltd: Key Facts

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

  • Summary 8 Philip Morris South Africa (Pty) Ltd: Competitive Position 2014

Cigarettes in South Africa - Category Analysis

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

  • Summary 9 Cigarettes: New Product Launches

DISTRIBUTION

PROSPECTS

CATEGORY BACKGROUND

Cigarettes: Price bands

  • Summary 10 Cigarette Price Band Definitions

Cigarettes: Tobacco blend

Cigarettes: Standard/menthol/capsule

Cigarettes: Filtered/unfiltered

Cigarettes: Carbon filter/non-carbon filter

Cigarettes: Cigarette length

Cigarettes: Regular vs slim vs superslim vs microslim

Cigarettes: Pack size

Cigarettes: Pack type

CATEGORY DATA

  • Table 15 Sales of Cigarettes by Tar Level: Volume 2009-2014
  • Table 16 Sales of Cigarettes by Tar Level: Value 2009-2014
  • Table 17 Sales of Cigarettes by Tar Level: % Volume Growth 2009-2014
  • Table 18 Sales of Cigarettes by Tar Level: % Value Growth 2009-2014
  • Table 19 Sales of Cigarettes by Price Band: % Volume Breakdown 2009-2014
  • Table 20 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2009-2014
  • Table 21 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2009-2014
  • Table 22 Sales of Cigarettes by Filtered vs Non-filtered: % Volume 2009-2014
  • Table 23 Sales of Filtered Cigarettes by Carbon vs Non-carbon: % Volume 2009-2014
  • Table 24 Sales of Cigarettes by Length: % Volume 2009-2014
  • Table 25 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2009-2014
  • Table 26 Sales of Cigarettes by Pack Size: % Volume 2009-2014
  • Table 27 Sales of Cigarettes by Pack Type: % Volume 2009-2014
  • Table 28 NBO Company Shares of Cigarettes: % Volume 2010-2014
  • Table 29 LBN Brand Shares of Cigarettes: % Volume 2011-2014
  • Table 30 Sales of Cigarettes by Distribution Format: % Volume 2009-2014
  • Table 31 Production, Imports and Exports of Cigarettes: Total Volume 2009-2014
  • Table 32 Forecast Sales of Cigarettes by Tar Level: Volume 2014-2019
  • Table 33 Forecast Sales of Cigarettes by Tar Level: Value 2014-2019
  • Table 34 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2014-2019
  • Table 35 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2014-2019
  • Table 36 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2014-2019
  • Table 37 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2014-2019
  • Table 38 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2014-2019
  • Table 39 Forecast Sales of Cigarettes by Filtered vs Non-filtered: % Volume 2014-2019
  • Table 40 Forecast Sales of Filtered Cigarettes by Carbon vs Non-carbon: % Volume 2014-2019
  • Table 41 Forecast Sales of Cigarettes by Length: % Volume 2014-2019
  • Table 42 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2014-2019
  • Table 43 Forecast Sales of Cigarettes by Pack Size: % Volume 2014-2019
  • Table 44 Forecast Sales of Cigarettes by Pack Type: % Volume 2014-2019

Cigars in South Africa - Category Analysis

HEADLINES

TRENDS

HAND-MADE VS MACHINE MANUFACTURED SPLITS

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

DISTRIBUTION

PROSPECTS

CATEGORY DATA

  • Table 45 Sales of Cigars by Category: Volume 2009-2014
  • Table 46 Sales of Cigars by Category: Value 2009-2014
  • Table 47 Sales of Cigars by Category: % Volume Growth 2009-2014
  • Table 48 Sales of Cigars by Category: % Value Growth 2009-2014
  • Table 49 Sales of Cigars by Handmade vs Machine-manufactured: % Volume Breakdown 2009-2014
  • Table 50 Sales of Cigars by Handmade vs Machine-manufactured: % Value Breakdown 2009-2014
  • Table 51 NBO Company Shares of Cigars Excluding Cigarillos: % Volume 2010-2014
  • Table 52 LBN Brand Shares of Cigars Excluding Cigarillos: % Volume 2011-2014
  • Table 53 NBO Company Shares of Cigarillos: % Volume 2010-2014
  • Table 54 LBN Brand Shares of Cigarillos: % Volume 2011-2014
  • Table 55 Distribution of Cigars by Format: % Volume 2009-2014
  • Table 56 Forecast Sales of Cigars by Category: Volume 2014-2019
  • Table 57 Forecast Sales of Cigars by Category: Value 2014-2019
  • Table 58 Forecast Sales of Cigars by Category: % Volume Growth 2014-2019
  • Table 59 Forecast Sales of Cigars by Category: % Value Growth 2014-2019

Smokeless Tobacco in South Africa - Category Analysis

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

CATEGORY DATA

  • Table 60 Sales of Smokeless Tobacco by Category: Volume 2009-2014
  • Table 61 Sales of Smokeless Tobacco by Category: Value 2009-2014
  • Table 62 Sales of Smokeless Tobacco by Category: % Volume Growth 2009-2014
  • Table 63 Sales of Smokeless Tobacco by Category: % Value Growth 2009-2014
  • Table 64 NBO Company Shares of Smokeless Tobacco: % Volume 2010-2014
  • Table 65 LBN Brand Shares of Smokeless Tobacco: % Volume 2011-2014
  • Table 66 Distribution of Smokless Tobacco by Format: % Volume 2009-2014
  • Table 67 Forecast Sales of Smokeless Tobacco by Category: Volume 2014-2019
  • Table 68 Forecast Sales of Smokeless Tobacco by Category: Value 2014-2019
  • Table 69 Forecast Sales of Smokeless Tobacco by Category: % Volume Growth 2014-2019
  • Table 70 Forecast Sales of Smokeless Tobacco by Category: % Value Growth 2014-2019

Smoking Tobacco in South Africa - Category Analysis

HEADLINES

TRENDS

The role and effect of cannabis/marijuana

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

CATEGORY DATA

  • Table 71 Sales of Smoking Tobacco by Category: Volume 2009-2014
  • Table 72 Sales of Smoking Tobacco by Category: Value 2009-2014
  • Table 73 Sales of Smoking Tobacco by Category: % Volume Growth 2009-2014
  • Table 74 Sales of Smoking Tobacco by Category: % Value Growth 2009-2014
  • Table 75 NBO Company Shares of RYO Tobacco: % Volume 2010-2014
  • Table 76 LBN Brand Shares of RYO Tobacco: % Volume 2011-2014
  • Table 77 NBO Company Shares of Pipe Tobacco: % Volume 2010-2014
  • Table 78 LBN Brand Shares of Pipe Tobacco: % Volume 2011-2014
  • Table 79 Distribution of Smoking Tobacco by Format: % Volume 2009-2014
  • Table 80 Forecast Sales of Smoking Tobacco by Category: Volume 2014-2019
  • Table 81 Forecast Sales of Smoking Tobacco by Category: Value 2014-2019
  • Table 82 Forecast Sales of Smoking Tobacco by Category: % Volume Growth 2014-2019
  • Table 83 Forecast Sales of Smoking Tobacco by Category: % Value Growth 2014-2019

Vapour Devices in South Africa - Category Analysis

HEADLINES

LEGISLATION

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

CATEGORY DATA

  • Table 84 Number of Adult Vapers 2010-2014
  • Table 85 Sales of Vapour Devices by Category: Value 2009-2014
  • Table 86 Sales of Vapour Devices by Category: % Value Growth 2009-2014
  • Table 87 GBN Brand Rankings (GBO)/NBO of Disposable Cig-a-likes 2014
  • Table 88 GBN Brand Rankings (GBO)/NBO of Rechargeable Cig-a-likes (including Nicotine Cartridges) 2014
  • Table 89 GBN Brand Rankings (GBO)/NBO of Tank System Charging and Vapourising Devices 2014
  • Table 90 GBN Brand Rankings (GBO)/NBO of E-liquids 2014
  • Table 91 Sales of Vapour Devices by Distribution Format: % Value 2009-2014
  • Table 92 Forecast Sales of Vapour Devices by Category: Value 2014-2019
  • Table 93 Forecast Sales of Vapour Devices by Category: % Value Growth 2014-2019

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
      • RYO Cigarettes
    • Vapour Devices
      • Cig-a-likes
        • Disposable cig-a-likes
        • Rechargeable cig-a-likes (including nicotine cartridges)
      • Tank systems
        • Tank system charging and vapourising devices
        • E-liquids
      • Heat-not-burn devices

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
  • Analysis by Type
  • Brand Ranking
  • 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 Slim/Superslim/Microslim/Regular
  • Cigarettes by Standard/Menthol/Capsule
  • Pricing
  • 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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