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Country Report

United Kingdom Flag Tobacco in the United Kingdom

| Pages: 59

Price: US$1,900

About this Report

EXECUTIVE SUMMARY

Volume sales continue to decline but profitability remains

With the exception of RYO tobacco, tobacco volume sales continued to decline in the UK in 2013. Sales continued to be hit by rising costs, duties, health and wellbeing considerations and a general development towards considering smoking as a less socially acceptable habit. The indoor smoking ban in public places implemented in 2007 has been a major contributor to this cultural change, with people increasingly seeing smoking as unacceptable during certain occasions whereas it was perfectly normal in the past. Nevertheless, tobacco companies are still far from making losses due to rising prices.

Consumers continue to favour budget options despite economic recovery

2013 saw the first sight of light at the end of the tunnel with regard to the economic recession, which, from its outbreak in 2008 following the financial crisis, dramatically impacted consumer confidence and spending behaviour. However, consumer spending behaviour always lags behind the economic indicators which show signs of recovery, and so will require some time before returning to pre-recession levels. As a result, consumers remained cautious with their spending in 2013, with budget cigarette brands and RYO tobacco continuing to outperform the market as a whole. More time and a more robust economic recovery will be needed before consumers return to regular cigarette brands, although the possibility remains that the shift is irreversible and they will not return to regular products even after significant improvements to their budgets.

Supermarkets continue to lead distribution despite the display ban

The display ban introduced in 2012 and which is set to be extended in 2015 with a complete rollout to all retail outlets did not affect the lead of supermarkets in 2013, which remained the main distribution channel for tobacco products. Consumers value the convenience offered by this channel as they can buy tobacco products as part of their regular grocery shopping, without the need to visit a dedicated store. Moreover, the big grocery multiples were also able to benefit from the growth of convenience stores as a channel for tobacco products as these retailers underwent a shift in strategy from out-of-town hypermarkets to town centre convenience store formats. These stores are still excluded from the display ban but the legislation will be extended to these outlets in 2015, as it will also be applicable to stores smaller than 280 sq m.

Gallaher Ltd and Imperial Tobacco Group battle for leadership

Imperial Tobacco ranked second in cigarettes, first in smoking tobacco and third in cigars in 2013. The company experienced a mixed performance, with its regular brands declining but its budget cigarettes and RYO brands growing their volume sales. Gallaher led cigarettes and ranked second in smoking tobacco and cigars in 2013. Gallaher’s position can be attributed to its focus on budget cigarette brands and brand extensions in RYO tobacco. Brands including Sterling grew in both cigarettes and RYO tobacco, being able to attract budget- conscious consumers trading down.

Increasingly restrictive legislation will continue to impact the market

Tobacco is expected to continue to decline in volume terms over the forecast period. Not only will consumer trends contribute to this decline, with more smokers trying to kick the habit, but EU directives and legislation will also be applied over the forecast period, making the trading environment increasingly tough. For instance, in 2015, the display ban will be implemented across the board to also include stores smaller than 280 sq m. Meanwhile, in 2016, cigarette packs smaller than 20 units and bags of RYO or pipe tobacco smaller than 30g will be banned in a bid to discourage purchases from price-sensitive consumers. Moreover, menthol cigarettes will be banned by 2020.

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Overview

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

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

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 the United Kingdom - Industry Overview

EXECUTIVE SUMMARY

Volume sales continue to decline but profitability remains

Consumers continue to favour budget options despite economic recovery

Supermarkets continue to lead distribution despite the display ban

Gallaher Ltd and Imperial Tobacco Group battle for leadership

Increasingly restrictive legislation will continue to impact the market

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

SOURCES

  • Summary 2 Research Sources

Tobacco in the United Kingdom - Company Profiles

British American Tobacco UK Ltd in Tobacco (United Kingdom)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 3 British American Tobacco UK Ltd: Key Facts

COMPANY BACKGROUND

PRODUCTION

  • Summary 4 British American Tobacco UK Ltd: Competitive Position 2013

Gallaher Ltd in Tobacco (United Kingdom)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 5 Gallaher Ltd: Key Facts
  • Summary 6 Gallaher Ltd: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

  • Summary 7 Gallaher Ltd: Competitive Position 2013

Imperial Tobacco Group Plc in Tobacco (United Kingdom)

STRATEGIC DIRECTION

KEY FACTS

  • Summary 8 Imperial Tobacco Group Plc: Key Facts
  • Summary 9 Imperial Tobacco Group Plc: Operational Indicators

COMPANY BACKGROUND

PRODUCTION

COMPETITIVE POSITIONING

  • Summary 10 Imperial Tobacco Group Plc: Competitive Position 2013

Cigarettes in the United Kingdom - 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

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 the United Kingdom - Category Analysis

HEADLINES

TRENDS

HANDMADE VS MACHINE-MANUFACTURED SPLITS

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

  • Summary 13 Cigars: New Product Launches

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 the United Kingdom - Category Analysis

HEADLINES

TRENDS

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

Smoking Tobacco in the United Kingdom - Category Analysis

HEADLINES

TRENDS

The role and effect of cannabis/marijuana

DISTRIBUTION

COMPETITIVE LANDSCAPE

NEW PRODUCT DEVELOPMENTS

PROSPECTS

CATEGORY DATA

  • Table 61 Sales of Smoking Tobacco by Category: Volume 2008-2013
  • Table 62 Sales of Smoking Tobacco by Category: Value 2008-2013
  • Table 63 Sales of Smoking Tobacco by Category: % Volume Growth 2008-2013
  • Table 64 Sales of Smoking Tobacco by Category: % Value Growth 2008-2013
  • Table 65 NBO Company Shares of RYO Tobacco: % Volume 2009-2013
  • Table 66 LBN Brand Shares of RYO Tobacco: % Volume 2009-2012
  • Table 67 NBO Company Shares of Pipe Tobacco: % Volume 2009-2013
  • Table 68 LBN Brand Shares of Pipe Tobacco: % Volume 2009-2012
  • Table 69 Distribution of Smoking Tobacco by Format: % Volume 2008-2013
  • Table 70 Forecast Sales of Smoking Tobacco by Category: Volume 2013-2018
  • Table 71 Forecast Sales of Smoking Tobacco by Category: Value 2013-2018
  • Table 72 Forecast Sales of Smoking Tobacco by Category: % Volume Growth 2013-2018
  • Table 73 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
  • 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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