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Country Report

South Africa Flag Tobacco in South Africa

| Pages: 63

Price: US$1,900

About this Report

EXECUTIVE SUMMARY

Legal cigarette sales continue to decline

Cigarette sales in South Africa continued to decline in 2013 due to a combination of factors. Rising excise and duty taxes increased the unit prices of legitimate cigarettes, resulting in a greater number of consumers purchasing cheaper illicit cigarettes. This has also meant that whilst retail volume sales have increased, value sales have shown a slight increase in comparison to the previous year. The average unit price of cigarettes increased by 6% in current terms. As a result, consumers increasingly sought out less expensive alternatives.

Innovation and the launch of cheaper variants of leading brands used to stimulate consumer interest

While the future looks bleak for tobacco in South Africa, leading players continued to focus on innovation in order to reach their target audience. As consumers became increasingly cash-strapped due to rising inflation, key players introduced cheaper variants of their leading brands. Philip Morris’ Marlboro was extended to include Marlboro Beyond while JTI’s Winston brand added Winston Slide. The company also introduced cheaper variants of its Camel brand, with Camel White, Black and Activate being made with a cheaper Virginia blend. These cheaper blends all sell at approximately R10 less than the price of the regular variant of the brand.

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. This applied predominantly to cigarettes, with tobacco specialists being the leading channel for cigars and smoking tobacco. 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. 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. Combined with the growth of illicit cigarette sales, the market looks set to struggle over the forecast period.

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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

Legal cigarette sales continue to decline

Innovation and the launch of cheaper variants of leading brands used to stimulate consumer interest

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 2008-2013
  • Table 2 Number of Adult Smokers by Gender 2008-2013

Tar levels

Health warnings

Advertising and sponsorship

Point-of-sale display bans

Smoking in public places

Low ignition propensity (LIP) regulation

Flavoured tobacco product ban

Plain packaging

‘Reduced harm’

Electronic cigarettes

Litigation

Death by cause

  • Table 3 Death by Cause 2009-2013

TAXATION AND PRICING

Duty paid packet marks

Taxation rates

  • Table 4 Taxation and Duty Levies 2008-2013

Average cigarette pack price breakdown

  • Table 5 Average Cigarette Pack Price Breakdown: Brand Examples

PRODUCTION/IMPORTS/EXPORTS

  • Table 6 Trade Statistics – Cigarettes 2009-2013

Illicit trade in cigarettes

MARKET INDICATORS

  • Table 7 Illicit Trade Estimate of Cigarettes: Volume 2008-2013

MARKET DATA

  • Table 8 Sales of Tobacco by Category: Volume 2008-2013
  • Table 9 Sales of Tobacco by Category: Value 2008-2013
  • Table 10 Sales of Tobacco by Category: % Volume Growth 2008-2013
  • Table 11 Sales of Tobacco by Category: % Value Growth 2008-2013
  • Table 12 Forecast Sales of Tobacco by Category: Volume 2013-2018
  • Table 13 Forecast Sales of Tobacco by Category: Value 2013-2018
  • Table 14 Forecast Sales of Tobacco by Category: % Volume Growth 2013-2018
  • Table 15 Forecast Sales of Tobacco by Category: % Value Growth 2013-2018

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 2013

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

STRATEGIC DIRECTION

KEY FACTS

  • Summary 5 JT International South Africa (Pty) Ltd: Key Facts
  • Summary 6 JT International South Africa (Pty) Ltd: Key Facts: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

  • Summary 7 JT International South Africa (Pty) Ltd: Competitive Position 2013

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

STRATEGIC DIRECTION

KEY FACTS

  • Summary 8 Philip Morris South Africa (Pty) Ltd: Key Facts
  • Summary 9 Philip Morris South Africa (Pty) Ltd: Key Facts: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

  • Summary 10 Philip Morris South Africa (Pty) Ltd: Competitive Position 2013

Cigarettes in South Africa - Category Analysis

HEADLINES

TRENDS

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

  • Summary 11 Cigarettes: New Product Launches

DISTRIBUTION

PROSPECTS

CATEGORY BACKGROUND

Cigarettes: Price bands

  • Summary 12 Cigarette Price Band Definitions

Cigarettes: Tobacco blend

Cigarettes: Standard/menthol/capsule

Flavour threads

Cigarettes: Filter/non-filter

Cigarettes: Carbon/standard filter

Cigarettes: Filter length

Cigarettes: Regular vs slims vs superslims vs microslims

Cigarettes: Pack size

Cigarettes: Pack type

CATEGORY DATA

  • Table 16 Sales of Cigarettes by Tar Level: Volume 2008-2013
  • Table 17 Sales of Cigarettes by Tar Level: Value 2008-2013
  • Table 18 Sales of Cigarettes by Tar Level: % Volume Growth 2008-2013
  • Table 19 Sales of Cigarettes by Tar Level: % Value Growth 2008-2013
  • Table 20 Sales of Cigarettes by Price Band: % Volume Breakdown 2008-2013
  • Table 21 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2008-2013
  • Table 22 Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2008-2013
  • Table 23 Sales of Cigarettes by Filter vs Non-filter: % Volume 2008-2013
  • Table 24 Sales of Filter Cigarettes by Carbon vs Non-carbon: % Volume 2008-2013
  • Table 25 Sales of Cigarettes by Length: % Volume 2008-2013
  • Table 26 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2008-2013
  • Table 27 Sales of Cigarettes by Pack Size: % Volume 2008-2013
  • Table 28 Sales of Cigarettes by Pack Type: % Volume 2008-2013
  • Table 29 NBO Company Shares of Cigarettes: % Volume 2009-2013
  • Table 30 LBN Brand Shares of Cigarettes: % Volume 2009-2012
  • Table 31 Sales of Cigarettes by Distribution Format: % Volume 2008-2013
  • Table 32 Production, Imports and Exports of Cigarettes: Total Volume 2008-2013
  • Table 33 Forecast Sales of Cigarettes by Tar Level: Volume 2013-2018
  • Table 34 Forecast Sales of Cigarettes by Tar Level: Value 2013-2018
  • Table 35 Forecast Sales of Cigarettes by Tar Level: % Volume Growth 2013-2018
  • Table 36 Forecast Sales of Cigarettes by Tar Level: % Value Growth 2013-2018
  • Table 37 Forecast Sales of Cigarettes by Price Band: % Volume Breakdown 2013-2018
  • Table 38 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume Breakdown 2013-2018
  • Table 39 Forecast Sales of Cigarettes by Tobacco Type: % Volume Breakdown 2013-2018
  • Table 40 Forecast Sales of Cigarettes by Filter vs Non-filter: % Volume 2013-2018
  • Table 41 Forecast Sales of Filter Cigarettes by Carbon vs Non-carbon: % Volume 2013-2018
  • Table 42 Forecast Sales of Cigarettes by Length: % Volume 2013-2018
  • Table 43 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
  • Table 44 Forecast Sales of Cigarettes by Pack Size: % Volume 2013-2018
  • Table 45 Forecast Sales of Cigarettes by Pack Type: % Volume 2013-2018

Cigars in South Africa - Category Analysis

HEADLINES

TRENDS

HANDMADE VS MACHINE-MANUFACTURED SPLITS

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

DISTRIBUTION

PROSPECTS

CATEGORY DATA

  • Table 46 Sales of Cigars by Category: Volume 2008-2013
  • Table 47 Sales of Cigars by Category: Value 2008-2013
  • Table 48 Sales of Cigars by Category: % Volume Growth 2008-2013
  • Table 49 Sales of Cigars by Category: % Value Growth 2008-2013
  • Table 50 Sales of Cigars by Handmade vs Machine-manufactured: % Volume Breakdown 2008-2013
  • Table 51 Sales of Cigars by Handmade vs Machine-manufactured: % Value Breakdown 2008-2013
  • Table 52 NBO Company Shares of Cigars Excluding Cigarillos: % Volume 2009-2013
  • Table 53 LBN Brand Shares of Cigars Excluding Cigarillos: % Volume 2009-2012
  • Table 54 NBO Company Shares of Cigarillos: % Volume 2009-2013
  • Table 55 LBN Brand Shares of Cigarillos: % Volume 2009-2012
  • Table 56 Distribution of Cigars by Format: % Volume 2008-2013
  • Table 57 Forecast Sales of Cigars by Category: Volume 2013-2018
  • Table 58 Forecast Sales of Cigars by Category: Value 2013-2018
  • Table 59 Forecast Sales of Cigars by Category: % Volume Growth 2013-2018
  • Table 60 Forecast Sales of Cigars by Category: % Value Growth 2013-2018

Smokeless Tobacco in South Africa - Category Analysis

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

CATEGORY DATA

  • Table 61 Sales of Smokeless Tobacco by Category: Volume 2008-2013
  • Table 62 Sales of Smokeless Tobacco by Category: Value 2008-2013
  • Table 63 Sales of Smokeless Tobacco by Category: % Volume Growth 2008-2013
  • Table 64 Sales of Smokeless Tobacco by Category: % Value Growth 2008-2013
  • Table 65 NBO Company Shares of Smokeless Tobacco: % Volume 2009-2013
  • Table 66 LBN Brand Shares of Smokeless Tobacco: % Volume 2009-2012
  • Table 67 Distribution of Smokless Tobacco by Format: % Volume 2008-2013
  • Table 68 Forecast Sales of Smokeless Tobacco by Category: Volume 2013-2018
  • Table 69 Forecast Sales of Smokeless Tobacco by Category: Value 2013-2018
  • Table 70 Forecast Sales of Smokeless Tobacco by Category: % Volume Growth 2013-2018
  • Table 71 Forecast Sales of Smokeless Tobacco by Category: % Value Growth 2013-2018

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 72 Sales of Smoking Tobacco by Category: Volume 2008-2013
  • Table 73 Sales of Smoking Tobacco by Category: Value 2008-2013
  • Table 74 Sales of Smoking Tobacco by Category: % Volume Growth 2008-2013
  • Table 75 Sales of Smoking Tobacco by Category: % Value Growth 2008-2013
  • Table 76 NBO Company Shares of RYO Tobacco: % Volume 2009-2013
  • Table 77 LBN Brand Shares of RYO Tobacco: % Volume 2009-2012
  • Table 78 NBO Company Shares of Pipe Tobacco: % Volume 2009-2013
  • Table 79 LBN Brand Shares of Pipe Tobacco: % Volume 2009-2012
  • Table 80 Distribution of Smoking Tobacco by Format: % Volume 2008-2013
  • Table 81 Forecast Sales of Smoking Tobacco by Category: Volume 2013-2018
  • Table 82 Forecast Sales of Smoking Tobacco by Category: Value 2013-2018
  • Table 83 Forecast Sales of Smoking Tobacco by Category: % Volume Growth 2013-2018
  • Table 84 Forecast Sales of Smoking Tobacco by Category: % Value Growth 2013-2018

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 Slim/Superslim/Microslim/Regular
  • Cigarettes by Standard/Menthol/Capsule
  • Illicit Trade Penetration
  • Products by Ingredient
  • Smoking population - number of adult smokers
  • Smoking prevalence - % of adult population
  • 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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