Historically, the long-term pattern for sales of cigarettes in Hong Kong was positive. This can mainly be explained by the lack of tax hikes in Hong Kong for many years, and as a result, consumer demand could see stable growth without interference from government tax increments.
Sales of comparatively strong flavours of cigarettes, such as high tar and high nicotine cigarettes, remained stable to declining in 2020. These products tend to be popular amongst the older generations of smokers, according to trade sources.
Philip Morris Asia continued to dominate cigarettes in Hong Kong in volume terms in 2020, with its Marlboro brand continuing to prove popular in all its different variants, such as Ice Blast, Menthol, Red, Gold and Double Burst. Marlboro continued to benefit in part from its long presence in Hong Kong and its favourable brand image.
Cigarettes is set to continue to experience strong retail volume and current value growth rates in 2021, and to a lesser extent in 2022, before stabilising at a slow and steady rate from 2023 onwards. This is due to the fact that the impact of the pandemic is expected to last over the next two years, with travel being unavailable and stress and boredom continue.
Younger consumers of legal smoking age are a big fan of flavour capsule cigarettes, due to the freshness and complexity of taste offered by mixes of fruity flavours, such as lemon and blueberry. As a result, sales of flavour capsule cigarettes have been on the rise for quite some time, and this is set to continue in the forecast period, with the share of all flavours of flavour capsules set to rise by nearly four percentage points, at the expense of non-capsule menthol cigarettes and standard cigarettes.
Cigarettes in Hong Kong has long been dominated by international players such as Philip Morris, British American Tobacco and Japan Tobacco, with Chinese players remaining relatively insignificant. These players all entered the market at an early stage and have a long presence, therefore enjoying strong brand equity with a variety of popular American blend brands, including Marlboro, Kent and Mevius.
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Understand the latest market trends and future growth opportunities for the Cigarettes industry in Hong Kong, China with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Cigarettes industry in Hong Kong, China, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Cigarettes research and analysis database.
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