In February 2019 an amendment was proposed to the Smoking Ordinance which would see a ban come into force on the production, importing and distribution of e-vapour products in Hong Kong. Following a second reading in May 2019 the bill was passed to the house committee to follow up, with it being expected to pass.
2018 saw a number of the leading cigarettes manufacturers impose price increases on their products. Philip Morris Asia Ltd was one of the first movers in this regard with it increasing the price of its premium Marlboro brand from HKD57 to HKD59 per pack.
Despite sales of cigarettes falling, one area which continued to see strong development in 2018 was flavour capsule cigarettes. A relative niche at the beginning of the review period, by 2018 one in ten packs sold were flavour capsule cigarettes.
Philip Morris continued to dominate cigarettes in Hong Kong in 2018 with its Marlboro brand continuing to prove popular. Marlboro has benefited in part from the growing shift towards premium cigarettes in Hong Kong, with rising incomes enabling consumers to trade up.
Japan Tobacco (Hong Kong) Ltd’s Mevius brand was one of the top performers in cigarettes in 2018. The brand’s Mevius Original Blue, Mevius Crystal Menthol and Mevius Sky Blue lines were the only ones to record positive retail volume growth in cigarettes in 2018.
Looking to benefit from the growing demand for flavour capsule cigarettes, British American Tobacco launched its new Lucky Strike Click 4 Mix cigarettes over the end of the review period. This innovative range features four different varieties of flavour capsule in each packet – Red Sense, Spearmint, Lemon Grass and Blue Touch – which adds variety and interest to the smoking experience.
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This industry report originates from Passport, our Tobacco market research database.