Executive Summary

Jul 2019
PROSPECTS
Rising prices fuel shift towards economy brands

High taxation rates continue to result in severe price hikes within cigarettes. As a result, volume sales continue to fall, although value sales are rising given major price hikes.

Unit price increases allow for positive growth

Despite falling demand, value sales continue to grow within cigarettes due to strong price increases. However, over the forecast period, value growth is set to slow as volume sales fall further and cigarettes become even less affordable.

Strong concerns over illicit trade

Illicit trade remains a significant concern for tobacco operators in Australia. This can be attributed to increasingly high unit prices of cigarettes due to growing excise rates, with illicit cigarettes packs typically only costing around a third of the price of regular ones.

COMPETITIVE LANDSCAPE
Focus on new innovative developments to attract consumers

Tobacco companies are looking to attract Australian smokers by offering new crushball flavoured cigarettes, such as Imperial Tobacco’s JPS crushball range. These crushball styled products provide new tastes, with consumers being able to squeeze small balls in the filter of a cigarette prior to smoking to release a liquid that masks the harsh flavour of the cigarette smoke on its own.

British American Tobacco remains in pole position

British American Tobacco Australia (BAT) maintained its leading position in cigarettes in 2018. However, the company saw a decline in sales share over the review period, largely due to gains made by Imperial Tobacco.

Focus on value offerings attracting price sensitive consumers

Due to rising tobacco taxation, which the government has indicated will continue until 2020, manufacturers are seeking to offer more economical options. For example, Imperial Tobacco’s Parker & Simpson was launched in March 2018 and is expected to appeal to non-brand loyal price sensitive consumers.

Want to find out more about this report?
Request more information
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.

Your Recently Viewed Reports

Cigarettes in Australia

Samples: FAQs about samples

Delivery: Files are delivered directly into your account within a few minutes of purchase.

Overview

Discover the latest market trends and uncover sources of future market growth for the Cigarettes industry in Australia 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 Cigarettes industry in Australia, our research will save you time and money while empowering you to make informed, profitable decisions.

The Cigarettes in Australia 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, and exports of finished cigarettes
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Cigarettes in Australia?
  • What are the major brands in Australia?
  • What is the legislative environment like in Australia?
  • What are the rates of cigarette taxation in Australia?
  • Do premium, mid-price or economy cigarettes dominate in Australia?
  • What is the rate of illicit trade in Australia?
  • How many smokers are there in the country?

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.

Cigarettes in Australia - Category analysis

HEADLINES

PROSPECTS

Rising prices fuel shift towards economy brands
Unit price increases allow for positive growth
Strong concerns over illicit trade

COMPETITIVE LANDSCAPE

Focus on new innovative developments to attract consumers
British American Tobacco remains in pole position
Focus on value offerings attracting price sensitive consumers

TAXATION AND PRICING

Taxation rates
Summary 1 Taxation and Duty Levies 2013-2018
Average cigarette pack price breakdown
Summary 2 Average Cigarette Pack Price Breakdown: Brand Examples

CATEGORY DATA

Table 1 Sales of Cigarettes: Volume 2013-2018
Table 2 Sales of Cigarettes by Category: Value 2013-2018
Table 3 Sales of Cigarettes: % Volume Growth 2013-2018
Table 4 Sales of Cigarettes by Category: % Value Growth 2013-2018
Table 5 Sales of Cigarettes by Blend: % Volume 2013-2018
Table 6 Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2013-2018
Table 7 Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2013-2018
Table 8 Sales of Cigarettes by Pack Size: % Volume 2013-2018
Table 9 Sales of Cigarettes by Price Band: % Volume 2013-2018
Table 10 NBO Company Shares of Cigarettes: % Volume 2014-2018
Table 11 LBN Brand Shares of Cigarettes: % Volume 2015-2018
Table 12 Sales of Cigarettes by Distribution Format: % Volume 2013-2018
Table 13 Illicit Trade Estimate of Cigarettes: Volume 2013-2018
Table 14 Forecast Sales of Cigarettes: Volume 2018-2023
Table 15 Forecast Sales of Cigarettes by Category: Value 2018-2023
Table 16 Forecast Sales of Cigarettes: % Volume Growth 2018-2023
Table 17 Forecast Sales of Cigarettes by Category: % Value Growth 2018-2023
Table 18 Forecast Sales of Cigarettes by Blend: % Volume 2018-2023
Table 19 Forecast Sales of Cigarettes by Standard/Menthol/Capsule: % Volume 2018-2023
Table 20 Forecast Sales of Cigarettes by Regular/Slim/Superslim/Microslim: % Volume 2018-2023
Table 21 Forecast Sales of Cigarettes by Pack Size: % Volume 2018-2023
Table 22 Forecast Sales of Cigarettes by Price Band: % Volume 2018-2023

Tobacco in Australia - Industry Overview

EXECUTIVE SUMMARY

Australian tobacco players continue to face tough operating environment
Taxation increases impacting demand within smoking tobacco
Multinationals continue to dominate and innovate in an adverse trading environment
Supermarkets continue to lead distribution, but tobacco specialists and internet retailers hold appeal for certain products
Slowing growth due to increasing consumer price sensitivity

OPERATING ENVIRONMENT

Legislation
Legislative overview
Summary 3 Legislation Summary at a Glance
Minimum legal smoking age
Smoking prevalence
Plain packaging
Advertising and sponsorship
Advertising through media (television, radio, billboards, consumer press, trade press, cinema, etc)
Advertising through retail point-of-sale
Sponsorship of sporting/music events
Point-of-sale display bans
Smoking in public places
Flavoured tobacco product ban
“Reduced harm”
Vapour products
Electronic cigarettes

PRODUCTION/IMPORTS/EXPORTS

MARKET INDICATORS

Table 23 Number of Adult Smokers by Gender 2013-2018

MARKET DATA

Table 24 Sales of Tobacco by Category: Volume 2013-2018
Table 25 Sales of Tobacco by Category: Value 2013-2018
Table 26 Sales of Tobacco by Category: % Volume Growth 2013-2018
Table 27 Sales of Tobacco by Category: % Value Growth 2013-2018
Table 28 Forecast Sales of Tobacco by Category: Volume 2018-2023
Table 29 Forecast Sales of Tobacco by Category: Value 2018-2023
Table 30 Forecast Sales of Tobacco by Category: % Volume Growth 2018-2023
Table 31 Forecast Sales of Tobacco by Category: % Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 4 Research Sources